Answer:
(a) No, Sarah would not be able to consume 3 snacks and 5 movies.
(b) Sarah will maximize her utility.
(c) The total utility Sarah will receive is 174 utils.
(d(i)) The marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Sarah will not be better off if she buys two more snacks or one more movie ticket.
Explanation:
Note: See the attached excel file for the calculation of marginal utility per dollar of Snacks and Movies.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
No, because the total expenses would $65 would be greater than her weekly income of $50.
That is, if Sarah consumes 3 snacks and 5 movies, her total expenses would be:
Total expenses = (Units of snacks * Price of snacks) + (Units of movies * Price of movies) = (3 * $5) + (5 * $10) = $65.
Since the total expenses would $65 would be greater than her weekly income of $50, Sarah would not be able to consume 3 snacks and 5 movies.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
Sarah will maximize her utility at the point where marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies. That is, where the following condition holds:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies
In the attached excel file, the above condition holds where Sarah consumes 4 snacks and 3 movies. At this point (see the red color in the attached excel file), we have:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies = 2.40
Therefore, Sarah will maximize her utility when she consumes 4 snacks and 3 movies. Because at this point, marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies which is equal to 2.40.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your work.
Total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies is the addition of the total utility from consuming utility maximizing quantities of the two goods.
The total utility from consuming a utility maximizing quantity of one good is the addition of the marginal utility from the first unit up to the utility maximizing units. From the attached excel file, we have:
Total utility from consuming utility maximizing quantity of Snacks = 20 + 18 + 15 + 12 = 65 utils
Total utility from consuming utility maximizing quantity of Movies = 50 + 35 + 24 = 109 utils
Therefore, we have:
Total utility from consuming the utility-maximizing combination of snacks and movies = 65 + 109 = 174 utils
(d(i)) Suppose Sarah's income increases to $60. What will happen to the marginal utility per dollar spent on movies?
To determine this, we assume that Sarah spends all her weekly income on movies alone. Therefore, we have:
Number of movies tickets when weekly income is $50 = $50 / Price of movie ticket = $50 / 10 = 5
Number of movies tickets when weekly income is $60 = $60 / Price of movie ticket = $60 / 10 = 6
Marginal utility per dollar spent on movies when weekly income is $50 = Marginal utility when 5 tickets is bought / Price of movie ticket = 15 / 10 = 1.50 utils
Marginal utility per dollar spent on movies when weekly income is $60 = Marginal utility when 6 tickets is bought / Price of movie ticket = 10 / 10 = 1.00 utils
Therefore, the marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Suppose Sarah's income increases to $60. Will Sarah be better off buying two more snacks or one more movie ticket? Explain.
If Sarah buys two snacks
From the attached excel file, this makes the total unit of snacks to increase from 4 to 6. This makes the marginal utility per dollar spent on snacks to fall from 2.40 to 1.60 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys two more snacks because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 1.60 is not equal to the marginal utility per dollar spent on movies of 2.40.
If Sarah buys one more movie ticket
From the attached excel file, this makes the total unit of movie ticket to increase from 3 to 4. This makes the marginal utility per dollar spent on movies to fall from 2.40 to 2.00 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys one more movie ticket because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 2.40 is not equal to the marginal utility per dollar spent on movies of 2.00.
What is a scientist who studies patterns of diseases called?
A.
A doctor
B.
An epidemiologist
C.
An informatics specialist
D.
A pharmacist
Answer:
An epidemiologist
Explanation:
An epidemiologist studies patterns of disease
hope this helps...
Describe ways that technology and social media have changed the roles of managers since classic methods were used in the 1960s.
Answer:
Social media and technology has changed ways of routine business activities. Business managers are now conducting meeting over phone call or virtual meeting process. They are not having formal meeting as it was conducted in earlier era.
Explanation:
The technology has changed the leadership activities of managers. They are now using latest technology to solve problems and even simulation and other techniques are used for decision making process. Earlier managers used to calculate and forecast the business activities themselves and then make conclusions to make decisions.
True or False Questions `
(1) The world-wide amount of foreign currency transactions is more than $5.5 trillion a day or $2,000 trillion per year: T or F
(2) The world-wide amount of merchandise and service trade is about $100 trillion per year: T or F?(3) An organized exchange is a dealer market, whereas an OTC (over-the-counter) market is an auction market: T or F?(4) The New York Stock Exchange (NYSE) is an organized market, whereas the NASDAQ is an OTC market: T or F?(5) An organized exchange has a physical location, whereas an OTC market has no centralized meeting place.(6) The foreign exchange market is a dealer market, and dealers make markets for foreign currencies by quoting the bid price at which they buy foreign currencies and the asked price at which they sell them.
Answer:
1.f
2.
Explanation:
Georgia Products Inc. completed and transferred 163,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 14,000 units, which were 2/5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $628,350, direct labor cost incurred was $204,850, and factory overhead applied was $48,050.
Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.
a. Total conversion cost $
b. Conversion cost per equivalent unit $
c. Direct materials cost per equivalent unit $
Answer:
Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.
a. Total conversion cost $
b. Conversion cost per equivalent unit $
c. Direct materials cost per equivalent unit $
a. Total conversion cost 252.900
b. Conversion cost per equivalent unit 0.61
c. Direct materials cost per equivalent unit 3.20
Explanation:
Solution
a. Total conversion cost 252.900
b. Conversion cost per equivalent unit 0.61
c. Direct materials cost per equivalent unit 3.20
Statement of Equivalent Units(Weighted average)
Material Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred out 163.000 100% 163,000 100% 163,000
Ending WIP 14,000 100% 14,000 40% 5,600
Total 177,000 Total 177,000 Total 168.600
.
Cost per Equivalent Units (Weighted average)
COST Material Conversion cost TOTAL
Beginning WIP Inventory Cost $ 0
Cost incurred during period 628.350 252.900 881.250
Total Cost to be accounted for 566,100 102,900 669,000
Total Equivalent Units 177,000 168.600
Cost per Equivalent Units 3.20 0.61 3.81
A Japanese automaker produces $1 million worth of automobiles in its factory in the United States. How much of that is added to the GNP of the United States
Answer:
$1 million
Explanation:
Gross National Product is the sum of all goods produced in a country using a country's resources. Despite the car been produced by a Japanese automaker, the Japanese automaker makes use of resources of the US, so the full value of the cars would be included in US's GNP
Alpha Corporation reported the following data for its most recent year: sales, $670,000; variable expenses, $420,000; and fixed expenses, $200,000. The company's degree of operating leverage is closest to:
Answer:
the degree of operating leverage is 5
Explanation:
The computation of the degree of operating leverage is given below:
= Contribution margin ÷ EBIT
= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)
= ($670,000 - $420,000) ÷ ($670,000 - $420,000 - $200,000)
= $250,000 ÷ $50,000
= 5
Hence, the degree of operating leverage is 5
Tammy, a single taxpayer, has a part-time job at BigCo, a company in which she has no ownership interest. In addition, she owns and operates LittleCo, a sole proprietorship that is a qualified trade or business. Tammy is paid wages of $40,000 by BigCo and has $100,000 in qualified business income from LittleCo. She has no other items of income or loss and $25,000 of itemized deductions. Assume the QBI amount is net of the self-employment tax deduction. What is her qualified business income deduction for 2020
Answer:
the deduction of the qualified business income is $20,000
Explanation:
The computation of the qualified business income is shown below:
= Qualified business income × deduction percentage
= $100,000 × 20%
= $20,000
The deduction percentage should be allowed 20% of the qualified business income and the same is to be applied
Hence, the deduction of the qualified business income is $20,000
What types of regulations apply to all businesses, regardless of industry?
A. Personnel regulations
ОО
B. Regulations related to clean water laws
C. Regulations related to clean air laws
D. Caveat emptor regulations
In the all businesses, regardless of industry the type of regulation apply is personnel regulations. Personnel regulation specify how individuals are to be treated and their responsibilities. The correct option is (A).
What do you mean by business?
An innovative company or group that engages in professional activities is referred to as a business.
They could be industrial, commercial, or something else. Businesses that are for profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
In the event that a firm accrues debt, creditors may seize the owner's personal property. Corporate tax rates are not permitted in a firm structure. All business income is subject to personal taxation for the proprietor.
Therefore, in the all businesses, regardless of industry the type of regulation apply is personnel regulations. Personnel regulation specify how individuals are to be treated and their responsibilities.
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Answer: Personnel regulations
A
Explanation: Just took the test
An enterprise system is a centralized database that collects and distributes information throughout the firm. What type of financial information would be useful for both the marketing and manufacturing operations
Answer:
The description of the frame of reference in question is described below.
Explanation:
Production and selling procedures may require both intervening decades sales figures as well as estimations among which results are directly sold.
For something like the account manager, this video will help to better manage advertising campaigns, recognize targeted customers as well as forecasting potential product lines.Manufacturing facilities may require product judgment to make which product lines are about to be produced, and perhaps even the necessary adjustments to be made throughout order to attempt to eventually produce consumer goods. Business processes may be able to find solutions to questionnaire such as which performance of manufacturing firms would be necessary to find new and innovative ways or which established production capabilities is capable to accommodate future development requirements.Ken built his small business by completing tasks a specific way. He trained and carefully watched his employees to ensure that they followed the process.
Free rein
Autocratic
Democratic
Answer:
Autocratic
Explanation:
In business, Autocratic form of leaderships is a form of leaderships that require the employees to follow every orders from the leader to the letters.
The leaders will determine the goals that each members need to achieve within a specific time period. They also will provide with a detailed procedure that the employees need to follow to achieve the goals. Employees generally do not have any freedom to choose their working style within Autocratic leaderships.
Ludwig Corporation leases a machine to Kluge Corporation under a three-year lease agreement determined to be a finance/sales-type lease. At the inception of the lease, Ludwig Corporation should record
Answer:
a lease receivable.
Explanation:
The lease receivable is the amount that should be paid by an obligor under the lease that involves all the amount that is owed and recovered. It simply means the income that occurs at the time when it is entered between the bororwed and the other person
So according to the given situation, the corporation should record the lease receivable
Which company has the highest level of sales ($) at the beginning of the simulation? Allstar B & B Curall Driscol Ethik
Answer:
Ethik
Explanation:
Ethik has highest level of sales at the beginning of simulation. The company Ethik has well established brand name and customers buys its products even if they are expensive as the main vision of the company is not to compromise on the quality of product.
studies seem to suggest that management tends to make accounting changes and or manipulate discretionary accruals to
Answer: D. avoid violation of debt covenants.
Explanation:
Going by the Accrual basis of Accounting, expenses that are related to a period must be recorded in that period regardless of if it is paid or not.
Discretionary accruals are those that the company reports subjectively because it is not necessary that these accruals should be accrued.
This allows management to manipulate these as they like and they usually do this to avoid violation of debt covenants which usually place restrictions of some activities of the firm. They therefore use these discretionary accruals to navigate these restrictions.
Transactions/events: 1. Acquired $25,000 from the issue of common stock. 2. Purchased $2,500 of supplies on account from the Gadget Supply Agency. 3. Performed security services at local sporting events during the year for $8,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land, paying $10,000 cash. 6. Paid utility expenses of $2,000 for the year. 7. Paid a cash dividend of $1,500 to the shareholders. 8. Found out from an appraiser that the market value of the land on 12/31 was $12,500.
Answer:
I guess that you need the journal entries:
1. Acquired $25,000 from the issue of common stock.
Dr Cash 25,000
Cr Common stock 25,000
2. Purchased $2,500 of supplies on account from the Gadget Supply Agency.
Dr Supplies 2,500
Cr Accounts payable 2,500
3. Performed security services at local sporting events during the year for $8,000 cash.
Dr Cash 8,000
Cr Service revenue 8,000
4. Paid salaries expense of $3,000 for the year.
Dr Salaries expense 3,000
Cr Cash 3,000
5. Purchased land, paying $10,000 cash.
Dr Land 10,000
Cr Cash 10,000
6. Paid utility expenses of $2,000 for the year.
Dr Utilities expense 2,000
Cr Cash 2,000
7. Paid a cash dividend of $1,500 to the shareholders.
Dr Dividends 1,500
Cr Cash 1,500
8. Found out from an appraiser that the market value of the land on 12/31 was $12,500.
NO JOURNAL ENTRY
By defining after-tax income, demonstrate the differences resulting from a $500 tax deduction versus a $500 tax credit for a single taxpayer in the 12% tax bracket with $33,000 of pre-tax income.
Answer:
A $500 tax deduction decreases taxable income. For example, this taxpayer has $33,000 taxable income - $500 = $32,500
Total tax liability = $32,500 x 12% = $3,900
On the other hand, if the taxpayer receives a $500 tax credit, then tax liability = $33,000 x 12% = $3,960
If we apply the tax credit, total taxes owed = $3,960 - $500 = $3,460
The amount of taxes owed decreases significantly more with a tax credit.
QUESTION 1
In a non-compete agreement, the term "ancillary" means that
a.the non-compete agreement must be part of a larger agreement.
b.both parties must have a stake in the outcome.
c.the non-compete agreement is unfair to the employee, but not the employer.
d.the agreement is harmless to the general public.
QUESTION 2
Some of the elements of a contract are acceptance, consideration, legality, and capacity.
True
False
QUESTION 3
In contract law, a minor is someone under the age of 21.
True
False
QUESTION 4
Which of the following terms designates the legal ability of a party to enter into a contract?
a.Affirmation
b.Consent
c.Capacity
d.Materiality
QUESTION 5
To formally cancel a contract is to _______ it.
a.disaffirm
b.affirm
c.rescind
d.ratify
QUESTION 6
Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.
True
False
QUESTION 7
To be valid, an agreement not to compete must be ancillary to a legitimate bargain.
True
False
QUESTION 8
If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is
a.a unilateral mistake.b.fraud.c.puffery.d.reckless misrepresentation.
QUESTION 9
Fraudulent but innocent misrepresentation permits the injured party to rescind a contract.
True
False
QUESTION 10
Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.
True
False
1. In an agreement i.e. "non-compete," the word 'ancillary' stands for:
a). the non-compete agreement must be part of a larger agreement.
2. The statement asserting that few of the components of a contract involving acceptance, contemplation, legality, and ability would be considered:
a). True
3. The statement stating that in the context of contract law, a minor is characterized as an individual below 21 years of age
b). False
4. The term that is used to appoint the legal capability of a party to be introduced to a contract would be called:
c). Capability
5. The term employed to denote the action of calling off a contract officially would be:
c). Rescind
6. The statement asserting that Ted's promise to pay the amount of the loan on Amanda's behalf should be in writing to make it enforceable would be called:
a). True
7. The statement calling that an agreement not being able to compete unless they are ancillary would be called:
a). True
8. The term that will be used to refer to Jane's statement displaying her opinion on her horse would be:
c). Puffery
9. The statement regarding defrauding of permits associated with the wounded party to revoke a contract would be called:
a). True
10. The statement that would be called true that Alex and Kate have a rightful unilateral contract would be:
a). True
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what are the sectors of the business environment, and how do changes in them influence business decisions
Answer:
Business is affected by different factors which collectively form the business environment. These include economic, social, legal, technological and political factors. ... Business environment are categorized into three main categories; internal environment; operational environment; and general/external environment.
Which functionality would you include in the product category of the marketing mix?
OA substitute goods for current product
O B. product discounts
O c.
after-sales service
O D. product image used in advertising
Annuity Payment and EAR You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized over 3 years (36 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment
Answer:
$996.43
Explanation:
present value of the loan = monthly payment x annuity factor
present value = $30,000PV annuity factor, 1%, 36 periods = 30.1075 (information from annuity tables)monthly payment = present value of the loan / annuity factor = $30,000 / 30.1075 = $996.4295 ≈ $996.43
A designer draws two circles, each of area 3.14 square feet. The centers of the circles are 4 feet apart. Do the circles overlap?
Answer:
No, the circles do not overlap
Explanation:
r = Radius of circle
A = Area = 3.14 square feet
Area of one circle
[tex]A=\pi r^2[/tex]
[tex]\Rightarrow 3.14=3.14r^2[/tex]
[tex]\Rightarrow r=1\ \text{ft}[/tex]
The radius of the each of the circles is 1 ft.
If the circles centers are 4 ft apart then the distance between the curves of the circle will be 2 ft apart.
So, the circles do not overlap each other. This is shown in the diagram.
Match each of the following accounts to its proper balance sheet classification.
a. Accounts payable
b. Accounts receivable
c. Accumulated depreciation
d. Buildings
e. Cash
f. Goodwill
g. Income taxes payable
h. Investment in long-term bonds
i. Land
j. Inventory
k. Patent
l Supplies
1. Intangible Assets
2. Long-term Liabilities
3. Property, Plant, and Equipment
4. Common stock
5. Retained Earnings
6. Current Assets
7. Current Liabilities
8. Long-term Investments
Answer:
Account Balance sheet classification
a. Accounts payable Current liabilities
b. Accounts receivable Current Assets
c. Accumulated depreciation Property,plant and equipment
d. Buildings Property,plant and equipment
e. Cash Current Asset
f. Goodwill Intangible Asset
g. Income taxes payable Current liabilities
h. Investment in long-term bonds Long term investment
i. Land Property,plant and equipment
j. Inventory Current Assets
k. Patent Intangible Asset
l. Supplies Current Assets
The matching of the following accounts to its proper balance sheet classification is shown below:
Account Balance sheet classificationa. Accounts payable Current liabilities
b. Accounts receivable Current Assets
c. Accumulated depreciation Property,plant and equipment
d. Buildings Property,plant and equipment
e. Cash Current Asset
f. Goodwill Intangible Asset
g. Income taxes payable Current liabilities
h. Investment in long-term bonds Long term investment
i. Land Property,plant and equipment
j. Inventory Current Assets
k. Patent Intangible Asset
l. Supplies Current Assets
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On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period are
Answer:
some parts of the question are missing:
Costs incurred during this period are: Demolition of old building $10,000 Architect's fees $20,000 Legal fees for title investigation and purchase contract $4,000 Construction costs $625,000 Edwards sold salvaged materials resulting from the demolition for $2,000
the purchase cost of the land = $100,000 (purchase price) + $10,000 (demolition of old building) + $4,000 (legal fees) - $2,000 (sales of salvaged materials) = $112,000
the cost of the building = $625,000 (construction costs) + $20,000 (architect's fees) = $645,000
Read the scenario.
Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car.
Based on this scenario, Raoul should
buy a used car.
lease a used car.
buy a new car.
lease a new car.
Answer:
lease a new car.
Explanation:
Raul is better off leasing a new car due to the following reasons.
Raul likes to change things now and then. With a lease, he can change the make and model of cars and often as he pleases.Raul does not have much money to repair and maintain his car. The best option is to lease a new car. A new car requires minimal maintenance. The cost of maintenance is not entirely up to Raul.Given that Raoul would not want to spend money on repairs and car maintenance, it is best that: he lease a new car.
What is a car lease?This is a type of financial agreement that exists where people would have to pay in order to drive a car instead of taking car loans that would have them own the car.
The lease would be beneficial because the car is new and he would not have to pay for much.
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A restriction of cash wherein the borrower is required to maintain a specific amount in a low-interest or noninterest-bearing account at the bank is called
Answer:
Compensating balance
Explanation:
Compensating balance is when the borrower agrees to maintain an amount of cash in his account.
The lender can invest this money and this reduces the cost of borrowing
The accounting records of Dixon Company revealed the following costs: direct materials used, $300,000; direct labor, $450,000; manufacturing overhead, $381,000; and selling and administrative expenses, $230,000. Dixon's product costs total: Multiple Choice None of the answers is correct. $901,000. $1,361,000. $1,131,000. $980,000.
Answer:
$1,131,000
Explanation:
The computation of the product cost is given below:
= Direct material used + direct labor + manufacturing overhead
= $300,000 + $450,000 + $381,000
= $1,131,000
By adding the above three items we can get the product cost
hence, the fourth option is correct
help meh plsssssssssssssssssssssss
Before filling in the details of an outline, you have to know your audience. To do so, ask yourself questions about your readers. Explain how you would use the answer to the question, "Do my readers already know me?" to influence your outline.
Explanation:
Well, start off by asking what audience you want to reach? If you want to have a target audience to children, you would want to use easy-to-understand wording and most likely little kid characters who they could relate to.
Put yourself in the position of someone you want to target. Younger people? Well, how did you feel when you were younger/how do you feel now?
Do you're readers know you? Often authors will have similarities in the characters they write about, for instance a person of color might use a character who is also of color and explain about racial injustices they have.
Put yourself in their place and see from their pov!
Caltran, Inc. completed manufacturing Job 445. It included $310 of direct materials cost, $1220 of direct labor cost, and $560 of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed job?
a. Work — in — Process Inventory 1530
Cost of Sold 1530
b. Work — in — Process Inventory 2090
Finished Inventory 2090
c. Finished Goods Inventory 2090
Work — in — Inventory 2090
d. Finished Goods Inventory 2090
Materials Inventory 2090
Answer:
Dr Finished Goods Inventory2,090
Cr Workminus−inminus−Process Inventory
2,090
Explanation:
Preparation of the correct journal entry needed to record the completed job
Based on the information given the correct journal entry needed to record the completed job will be :
Dr Finished Goods Inventory2,090
Cr Workminus−inminus−Process Inventory
2,090
Calculated as:
Direct materials cost $310
Direct labor cost $1,220
Allocated manufacturing overhead $560
=2,090
On January 1, 2016, Goll Corp. issued 3,000 of its 10%, $1,000 bonds for $3,120,000. These bonds were to mature on January 1, 2026 but were callable at 101 any time after December 31, 2019. Interest was payable semiannually on July 1 and January 1. On July 1, 2021, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2021 on this early extinguishment of debt was
Answer:
$24,000 gain
Explanation:
Dr Cash 3,120,000
Cr Bonds payable 3,000,000
Cr Premium on bonds payable 120,000
premium amortization per coupon = $120,000 / 20 periods = $6,000
a total of 11 coupons were paid = $6,000 x 11 = $66,000
carrying value of the bonds = $3,054,000
gain/loss on retirement of bonds = carrying value - retirement value = $3,054,000 - $3,030,000 = $24,000 gain
$1,000,000. Any excess of cost over book value was assigned to goodwill. During 2013, Sleat paid dividends of $24,000 and reported a net loss of $140,000. What is the balance in the investment account on December 31, 2013
Answer:
$950,800
Explanation:
Calculation for What is the balance in the investment account on December 31, 2013
Investment account balance=$1,000,000-(30%*$140,000)-(30%*$24,000)
Investment account balance=$1,000,000 - $42,000 - $7,200
Investment account balance= $950,800
Therefore the balance in the investment account on December 31, 2013 will be $950,800
