Answer:
$3,190,524
Explanation:
the issue price of the bonds was:
PV of face value = $3,600,000 / (1 + 13%)¹¹ = $938,511.55
PV of coupon payments = $396,000 x 5.6869 (PV annuity factor, 13%, 11 periods) = $2,252,012.40
issue price = $3,190,524
Dr Cash 3,190,524
Dr Discount on bonds payable 409,476
Cr Bonds payable 3,600,000
True or false: The FASB considers written comments from interested parties before issuing an Accounting Standards Update.
Answer:
True.
Explanation:
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
The FASB considers written comments from interested parties before issuing an Accounting Standards Update based on due process such as open hearing
Which of the following describes a person's financial debt or obligation?
O Profits
O Assets
O Investments
O Liabilities
Answer:
Liabilities I'm sure ......
Answer:
Liabilities and some time investments
Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 5.40 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 9.00 Fixed selling expense $ 3.80 Fixed administrative expense $ 1.50 Sales commissions $ 0.70 Variable administrative expense $ 0.65 If the selling price is $28.00 per unit, the contribution margin per unit sold is closest to:
Answer:
the contribution margin per unit is $14.05
Explanation:
The computation of the contribution margin per unit is shown below;
As we know that
Contribution Margin per unit = Selling price per unit - Variable costs per unit
= ($28) - ($5.20 + $5.40 + $2 + $0.70 + $0.65)
= $28 - $13.95
= $14.05
Hence, the contribution margin per unit is $14.05
Why should a global marketing manager consult local attorneys in other countries before creating a marketing campaign abroad?
Answer:
ok answer is c
Explanation:
i did this today and got a 100%
Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $22 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?
Answer and Explanation:
The computation of the gain recognized and the tax that should be paid is shown below
Sale of share(10 × 8 × $22) $1,760
Less: basis (10 × 8 ×$15) $1,200
The gain realized $560
Now the tax would be
= $560 × 15% preferential rate
= $84
Marigold Corp. purchased a truck at the beginning of 2020 for $109700. The truck is estimated to have a salvage value of $4200 and a useful life of 123000 miles. It was driven 22000 miles in 2020 and 30000 miles in 2021. What is the depreciation expense for 2020
Answer:
the depreciation expense of the year 2020 is $18,870
Explanation:
The computation of the depreciation expense of the year 2020 is as follows:
= (Truck value - salvage value) ÷ (useful life) × (driven miles)
= ($109,700 - $4,200) ÷ (123,000 miles) × (22,000 miles)
= $18,870
Hence, the depreciation expense of the year 2020 is $18,870
Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. What is the profit from the sale of 100 bicycles
Answer:
$12,000
Explanation:
To calculate the profit for Atlas corporation, we will use the formula below;
Profit = (Contribution margin × Units sold) - Fixed expenses
Given that;
Contribution margin = $200
Units sold = 100
Fixed expenses = $8,000
Profit = [($200 × 100) - $8,000]
Profit = $20,000 - $8,000
Profit = $12,000
A legal and binding form of business ownership whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory is known as a(n)
Answer:
The right approach is "Franchise Agreement".
Explanation:
A franchise agreement would be a legally binding system of management out the structure of the contract between the franchise system as well as its owner. Throughout compensation again for the acquisition of a franchise, this same franchisor generally gets an actual opening service charge as well as a yearly processing fee.Fill in the blanks with the category of the expanded accounting equation (assets, liabilities, stockholders' equity, dividends, revenues, expenses).
a. Inventory _________
b. Dividends _________
c. Utilities Payable _________
d. Accounts Payable _________
e. Retained Earnings _________
f. Cost of Goods Sold _________
g. Service Revenue _________
h. Rent Expense _________
Answer:
a. Inventory ⇒ Assets
Inventory are considered assets because they are owned by the business for the purpose of generating cash. They are to be sold within a period which makes them current assets.
b. Dividends ⇒ Dividends
Dividends are a share of the profits distributed to the shareholders of a company.
c. Utilities Payable ⇒ Liabilities
Utilities payable are liabilities because they reflect utilities for which the company has not paid. They are current because they must be paid within a period.
d. Accounts Payable ⇒ Liabilities
Accounts payable are companies that the company bought goods from on credit. These are current liabilities as well.
e. Retained Earnings ⇒ Stockholders' equity
Retained earnings are part of the profits that were not distributed to shareholders. They still belong to the shareholders however so they fall under Equity.
f. Cost of Goods Sold ⇒ Expenses
Cost of goods sold refer to the cost of making sales to earn revenue and so are expenses.
g. Service Revenue ⇒ Revenue
h. Rent Expense ⇒ Expenses
Rent expenses as implied, are expenses resulting from occupying a building that does not belong to the company. It is an income statement item.
G2 - Magellan lost the favor of the king of Portugal when he became involved in a political
__________.
(a) entanglement
(b) discussion
(c) negotiation
(d) problems
(e) None of the above
Answer:
(b) discussion
Explanation:
For example, historians believe that Magellan
Roeher Company sold $9,000 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries when (a) Roeher makes the sale, (b) Roeher grants an allowance of $700 when some of the shelving does not meet exact specifications but still could be sold by Elkins, and (c) at year-end; Roeher estimates that an additional $200 in allowances will be granted to Elkins.
Answer:
1. Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
Explanation:
Preparation of the journal entry
1. Preparation of the entries when Roeher makes the sale
Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Preparation of the entries when Roeher grants an allowance of the amount of $700
Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Preparation of the entries when Roeher estimated that an additional amount of $200 in allowances will be granted to Elkins
Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
In 2019, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2019, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,200. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2019. QBI deduction: $fill in the blank 3d3cdcfa0fe106c_1 Tax liability (round to the nearest dollar): $fill in the blank 3d3cdcfa0fe106c_2 b. Complete Henry's 2019 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as positive numbers.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. However, I have found that missing data on the internet and will be using that data to solve this question.
Solution:
Data Given:
Net Income = $61,200
Standard Deduction = $12,200
Henry's QBI deduction and his tax liability for 2019.
For Henry's QBI deduction, we have the following formula:
QBI deduction = (Net income - Standard Deduction) x 20%
Where, 20% is the value which is dragged from the 2019 Tax Rate Schedule which is missing here.
So,
Henry's QBI Deduction = ($61,200 - $12,200 ) x 20%
Henry's QBI Deduction = $9,800
Now, we need to calculate the tax liability:
For, Tax liability, first we need to complete the part (b) which is to compute the total taxable income.
So,
The Taxable Income = Net income minus Standard Deduction minus QBI Deduction
Taxable income = ($61,200 - $12,200 - $9,800)
Taxable income = $34,200
We need to use this taxable income and tax rate of 12% (fetched from Table) and 9700 (Fetched from the table)
So,
Tax Liability for Henry = $970 + (12% x (39,200 - 9,700))
Tax Liability For Henry = $970 + (12% x (29500))
Tax Liability For Henry = $970 + (3540)
Tax Liability For Henry = $4,510
b) in part b, we have to calculate the total taxable income, that we have already calculated. And since, there is no form, so, I will be completing this problem here.
Taxable income = Net income minus Standard Deduction minus QBI Deduction
Taxable income = ($61,200 - $12,200 - $9,800)
Taxable income = $34,200
The most common method for compensating the contractor, allowing for changes to the scope of work during the construction period, is called:
Answer:
Lump sum contract.
Explanation:
A contractor can be defined as an individual who is saddled with the responsibility of overseeing, supervising, monitoring, controlling and analyzing the construction process of a project or property.
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law. There are various types of contracts used in field of construction and one of such is a lump-sum contract.
A lump sum contract is also known as stipulated sum and it refers to a type of contract in which a contractor states a predetermined amount of money (single price) that would be used to execute and complete a particular project.
Hence, the most common method for compensating the contractor, allowing for changes to the scope of work during the construction period, is called lump sum contract.
Do Not Change Subscription Price Increase Subscription Price
DailyVoice Do Not Change Subscription Price $500, $400 $200, $700
Increase Subscription Price $600, $300 $300, $100
The two major newspapers in a city, Daily Voiceand Town Herald, are considering whether to raise the subscription price. The first entries in the matrix above show the profits to Daily Voice, and the second entries show the profits to Town Herald. Which of the following is consistent with the above payoff matrix?
a. Do Not Change Subscription Price is adominant strategy forDaily Voice.
b. Do Not Change Subscription Price is adominant strategy forTown Herald.
c. Increase Subscription Price is a dominantstrategy forDaily Voice.
d. Increase Subscription Price is a dominantstrategy forTown Herald.
e. There are no dominant strategies in the abovepayoff matrix
Answer:
e. There are no dominant strategies in the above payoff matrix
Explanation:
a) Payoff matrix
Do Not Change Increase Subscription
Subscription Price Price
Do Not Change Subscription
Price $500 $400 $200 $700
Increase Subscription Price $600 $300 $300 $100
The players in the matrix payoff game are Daily Voice and Town Herald.
b) There is no dominant strategy that absolutely favors either Daily Voice or Town Herald in this matrix. A dominant strategy will exist if one party is always better off under a particular strategy regardless of the strategy the other party chooses.
Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $70,600. The company's beginning merchandise inventory was $16,500 and its ending merchandise inventory was $30,000. What was the total amount of the company's merchandise purchases for the month
Answer:
$84,100
Explanation:
Haack incorporation cost of goods last year was $70,600
The beginning merchandise inventory was $16,500
The ending merchandise inventory was $30,000
Therefore the total amount of purchases can be calculated as follows
Cost of goods= beginning inventory + purchases-ending inventory.
70,600= 16,500+purchases-30,000
70,600-16,500= purchases - 30,000
54,100 = purchases - 30,000
54,100+30,000= purchases
Purchases= 84,100
Hence the total purchases is $84,100
All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are: Multiple Choice
Question Completion:
Current information for the Healey Company follows:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory 26,600
Beginning work in process inventory 32,400
Ending work in process inventory 38,000
Direct labor 52,800
Total factory overhead 40,000
Answer:
Healey Company
Total manufacturing costs for the year are:
$155,800
Explanation:
a) Data and Calculations:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory (26,600)
Cost of raw materials used $68,600
Beginning work in process inventory 32,400
Ending work in process inventory (38,000)
Direct labor 52,800
Total factory overhead 40,000
Total manufacturing costs $155,800
b) The total manufacturing costs are made up of costs of direct materials, direct labor, and factory overhead. These costs are incurred in the production process and can be traced to the units of product(s) being manufactured.
What do you think makes a corporation successful globally?
Answer:
The corporation has to have an appeal to all cultures, every type of person. They also need very, very strong marketing.
In ideal situations, the goal of communication is to: a. provide valuable feedback. b. reach mutual understanding. c. commend others. d. better prospects of self-advancement.
Answer:
a. provide valuable feedback.
Explanation:
Communication has often been defined as a two-way process of sending and then receiving information. So what comes first or the goal based on this definition is getting valuable feedback.
Hence, in ideal situations reaching mutual understanding isn't the goal, neither is commending others or self-advancement, but a conscious satisfaction that comes from having received valuable feedback.
For example, if there's no feedback, then the question about mutual understanding isn't relevant.
give the examples of positive body language in teamwork
1. good posture
2. eye contact
3. be interested in what they are saying
4. be polite
The balanced scorecard can be made more effective by developing it at a detail level so that employees:
Answer: can see how their actions contribute to the success of the firm.
Explanation:
The balanced scorecard shows the results of the actions that a particular company has already taken. It is used by the managers to track of activities that are to be executed and to also monitor the consequences of the actions that were taken.
The balanced scorecard can be made more effective by developing it at a detail level so that employees can see how their actions contribute to the success of the firm.
A recent comparison between two surgeons revealed a difference in their average cost per case. Describe three possible reasons for the observed difference and how you would determine whether or not the difference was statistically significant.
Answer and Explanation:
The three possible reasons are as follows:
Variables done under survey:
1. The surgical equipment cost may be change in the case when there is various vendor
2. The type or the method might be different in the case when there is a gap of generation between these two doctors
3, The management may given the various targets via revenue as one could work less in order to compensate
Here the mean variable difference would be tested by two means for each and every case or conduct the ANOVA for 3 variables that delievers the study that should be main and descriptive
When might you use the Bank Deposit Transaction in Quickbooks Online?
• Your client wants to apply a customer payment to an open invoice
• Your client wants to record an SBA loan amount received
• Your client wants to record sales from her upcoming trade show and provide sales receipts
• Your clients wants to refund a customer
Answer:
• Your client wants to apply a customer payment to an open invoice
Explanation:
• Your client wants to apply a customer payment to an open invoice
Melanie owns a bakery and has just purchased new powerful mixing machines that will increase her daily output of baked goods. This is an example of an investment in:
Answer:
A
Explanation:
Here are the options :
A.physical capital.B.technology.C.human capital.D.financial capital.
Physical capital can be described as tangible, man-made objects used to produce goods. They include machinery, cars
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9,000,000 Current liabilities $19,000,000 Long-term debt (40,000 bonds, $1,000 par value) $40,000,000 Total liabilities $59,000,000 Common stock (10,000,000 shares) $30,000,000 Retained earnings $50,000,000 Total shareholders' equity $80,000,000 Total liabilities and shareholders' equity $139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20-year, 9.00% bonds with semiannual payments are selling for $930.41. The beta is 1.22, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to Exhibit 10.1. What is the best estimate of the after-tax cost of debt? a. 5.23% b. 7.35% c. 5.59% d. 6.48% e. 6.17%
Answer:
b. 7.35%
Explanation:
Calculation for What is the best estimate of the after-tax cost of debt
First step is to use financial calculator to find I/Y
FV= 1,000
N=20 years *2 = 40
PMT=9%*1,000/2 = 45
PV = -930.41
I/Y=?
Hence,
I/Y = 4.9%
Second step is to calculate YTM
YTM=4.9%*2
YTM= 9.8%
Now let Calculate the best estimate of the after-tax cost of debt
Using this formula
After tax cost of debt = YTM*(1-tax rate)
Let plug in the formula
After tax cost of debt =9.8%*(1-25%)
After tax cost of debt =9.8*75%
After tax cost of debt =0.0735*100
After tax cost of debt == 7.35%
Therefore the best estimate of the after-tax cost of debt will be 7.35%
Bob invests X in an account that pays interest at an annual effective rate of 8%. Ten years later, he withdraws X. Ten years after that, he withdraws 1,000, which exhausts the account. Calculate X.
Answer:
$399.68
Explanation:
The computation of X is shown below:
X = X ÷ (1 + 0.08)^10 + $1,000 ÷ (1 + 0.08)^20
= X ÷ 2.158925 + 214.548207
X - X ÷ 2.158925 = 214.548207
2.158925X - X ÷ 2.158925 = 214.548207
1.158925X = 214.548207 × 2.158925
X = 2.14548207 × 2.158925 ÷ 1.158925
= $399.68
Assume that an asset costing $72,000 is expected to produce 500,000 units and have a salvage value of $6,000. The first year, 90,000 units are produced; the second year, 82,000 units are produced; the third year, 94,000 units are produced. Using the units-of-production method, complete the following:
Year Depreciation Expense Book Value
0 — $72,000
1 fill in the blank 1 fill in the blank 2
2 fill in the blank 3 fill in the blank 4
3 fill in the blank 5 fill in the blank 6
Answer:
depreciable value = $72,000 - $6,000 = $66.000
depreciation expense per unit produced = $66,000 / 500,000 units = $0.132 per unit
depreciation expense year 1 = 90,000 x $0.132 = $11,880
depreciation expense year 2 = 82,000 x $0.132 = $10,824
depreciation expense year 3 = 94,000 x $0.132 = $12,408
Year Depreciation expense Book value
0 $0 $72,000
1 $11,880 $60,120
2 $10,824 $49,296
3 $12,408 $36,888
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,600. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,500.During the next two years, the following information is available for Zip Company: IncomeDividends DeclaredCommon StockFair Value (12/31)2016 $315,0002017$70,000$6,700390,000201890,00014,500472,000 At December 31, 2017, Zip reports a net book value of $287,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017. Assume Akron applies the equity method to its Investment in Zip account:What amount of equity income should Akron report for 2018
,Answer:
$23,910
Explanation:
The computation of the amount of equity income should Akron report for 2018 is given below:
But before that the amortization is
Purchase price $97,500
carrying value ($390,000 ×5%) $19,500
Total fair value $117,000
Less: net book value ($287,000 × 0.30) $86,100
Franchise agreement $30,900
Divided by Remaining life 10
annual amortization $3,090
Now the amount of equity income is
= $90,000 ×30% - $3,090
= $23,910
A company issued 10-year,7%bonds with a par value of $100,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: (round to the nearest dollar)
Answer:
$3,673.70
Explanation:
Discount on issue = $100,000 - $96,526 = $3474
Divide by Total semiannual periods = 10*2 = 20
Semiannual Discount amortization = $3474 /20 = $173.70
Semiannual Cash interest = $100,000*7%/2 = $3,500
Add: Discount amortization = $173.70
Interest expense for the first semiannual interest period = $3,673.70
Simon decided to invest $8,000 in the stock market one day early in 2008. Six months after he invested, on July 17, the stocks he had purchased were down 50%. Fortunately for Simon, from July 17 to October 17, the stocks he had purchased went up 75%. At this point, Simon has:
Answer:
At this point, Simon has lost $1,000 of his money.
Explanation:
This can be determined by calculating the current value of Simon's investment as follows:
Initial amount invested = $8,000
Value of the investment on July 17 = Initial amount invested * (100% - Percentage of loss) = $8,000 * (100% - 50%) = $4,000
Value of the investment on October 17 = Value of the investment on July 17 * (100% + Percentage of increase) = $4,000 * (100% + 75%) = $7,000
Amount of loss on October 17 = Initial amount invested - Value of the investment on October 17 = $8,000 - $7,000 = $1,000
Therefore, at this point, Simon has lost $1,000 of his money.
Jorge and Anita, married taxpayers, earn $142,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $104,500 of taxable income, what is their marginal tax rate on this income
Answer:
Jorge and Anita
Their marginal tax rate on their income is 24%.
Explanation:
a) Data and Calculations:
Taxable income = $142,000
Interest from municipal bonds = $49,000
Additional taxable income = $104,500
Total taxable income:
Taxable income = $142,000
Additional taxable income = $104,500
Total = $246,500
Their joint income is within the $165,601 - $315,000 band, which attracts 24% marginal tax rate.
b) Note that income from investing in municipal bonds is generally exempt from Federal and state taxes, especially for residents of the issuing state, except capital gains attributed to the investment.
