Answer:
Financial disadvantage = 45,750
Explanation:
First of all, we need to sort out the data given in this question.
Data Given:
Per Unit Direct materials = $ 3.60
Direct labor = $ 8.20
Variable manufacturing overhead = $ 8.70
Supervisor's salary = $ 4.10
Depreciation of special equipment = $ 2.50
Allocated general overhead = $ 7.70
Offer by outside supplier = $27.50
So,
Cost of making = [(3.60+8.20+8.70+2.50)*16,500]+28,500 (Opportunity cost)
Cost of Making = (23*16,500)+28,500
Cost of Making = 408,000
Cost of buying = 16,500*27.50
Cost of buying = 453,750
Financial disadvantage = Cost of making - Cost of buying
Financial disadvantage = 453,750 - 408,000
Hence,
Financial disadvantage = 45,750
The purpose of this assignment is to identify and research a potential problem that technology could assist in solving. The ultimate goal is to imagine where technology will be in 18-36 months and how it will solve problems. Technology is constantly growing exponentially. As entrepreneurs, you have opportunities to use this technology to solve grand problems within the world that would better the human condition.
Write a one to three sentence problem statement highlighting a single key issue and answering the following questions
i: What is the problem?
ii: Approximately how many people are affected by the problem?
iii: To what extent are people affected?
iv: What aspects of life is affected?
Answer:
Explanation:
The following would be a hypothetical scenario which could be possible as technology progresses. One very serious disease that exists in our world is ALS or amyotrophic lateral sclerosis, which is a disease that affects the individuals nervouse system causing loss of muscle control. This disease affects more than 5,000 individuals per year, to the extent that most die within the first year. The disease affects every single aspect of the individuals lives as they begin to lose muscle control to the point where they can no longer move and their lungs stop working. It is known that this disease is caused by higher than normal levels of glutamate. With the help of technology in the future this chemical in the body may be able to be regulated and controlled using technology to the point where this disease will be completely treatable.
Roberta is the supervisor of a fund-raising project. She notices that her team members are not able to meet the targets and they have deviated from the planned schedule. To understand the situation and the challenges that the team members are facing, Roberta wants to reach out to all the team members and establish an open communication culture. To convey her message clearly, the most appropriate way for Roberta would be to:
Answer: organize a face-to-face discussion with the team.
Explanation:
For Roberta to convey her message clearly, the most appropriate way will be for her to organize a face-to-face discussion with the team.
Since she wants to establish an open communication culture, having a face to face discussion is essential. In this case, the team shares their ideas and are more engaged. The team then understands what is required of them and works towards achieving company goals.
Solving for dominant strategies and the Nash equilibrium Suppose Darnell and Eleanor are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Darnell chooses Right and Eleanor chooses Right, Darnell will receive a payoff of 5 and Eleanor will receive a payoff of 1.
Eleanor Left Right
Left 6,6 6,3
Darnell Right 4,3 5,5
The only dominant strategy in this game is for______ to_______ choose.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Darnell chooses_______ and Eleanor chooses_______.
Answer:
Best response for Eleanor
If Darnell chooses left, Eleanor would have to choose Left as well so that Eleanor can make a payoff of 6.
If Darnell chooses right, Eleanor would have to choose right as well to make a payoff of 5.
Best response for Darnell.
If Eleanor chooses left, Darnell would choose Left as well to make a payoff of 6.
If Eleanor chooses right, Darnell would still chose Left so as to make the same payoff of 6.
The only dominant strategy in this game is for Darnell to choose Left.This is the dominant strategy because it is the best strategy regardless of the action of Eleanor.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Darnell chooses Left and Eleanor chooses Left.Darnell would always choose Left as this is the dominant strategy. Eleanor would therefore choose Left as well to make a payoff of 6.
Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows:
Actual Hourly Wage rate: 2016-$10.00 - 2017-$11
Vacation Days Used by each employee - 2016-0 days and 2017-9 days
Sick Days Used by Each Employee - 2016 -4 days and 2017 5 days
Broderick Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.
Required:
a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.
b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
Answer:
A. 2019
Dr Salaries and Wages Expense $7,200
Cr Salaries and Wages Payable $7,200
2019
Dr Salaries and Wages Expense $4,320
Cr Salaries and Wages Payable $4,320
2019
Dr Salaries and Wages Payable $2,880
Cr Cash $2,880
2020
Dr Salaries and Wages Expenses $7,920
Cr Salaries and Wages Payable $7,920
2020
Dr Salaries and Wages Expenses $4,752
Cr Salaries and Wages Payable $4,752
2020
Dr Salaries and Wages Expenses $648
Dr Salaries and Wages Payable $6,480
Cr Cash $7,128
2020
Dr Salaries and Wages Expenses $ 144
Dr Salaries and Wages Payable $3,816
Cr Cash $3,960
B. Vacation Wages Payable at December 31, 2019 $7,200
Sick Pay Wages Payable at December 31, 2019 $1,440
Vacation Wages Payable at December 31, 2020 $8,640
Sick Pay Wages Payable at December 31, 2020 $2,376
Explanation:
(a) Preparation of the journal entries to record transactions related to compensated absences during 2019
2019
Dr Salaries and Wages Expense $7,200
Cr Salaries and Wages Payable $7,200
(9 employees * $10 per hour * 8 hours per day * 10 days = $7,200)
(Record Accrue expenses and liabilities for Vacations)
2019
Dr Salaries and Wages Expense $4,320
Cr Salaries and Wages Payable $4,320
(9 employees * $10 per hour * 8 hours per day * 6 days = $4,320)
(Record Accrue expenses and liabilities for Sick Pay)
2019
Dr Salaries and Wages Payable $2,880
Cr Cash $2,880
(9 employees * $10 per hour * 8 hours per day * 4 days = $2,880)
(Record Sick leave paid)
Preparation of the journal entries to record transactions related to compensated absences during 2020
2020
Dr Salaries and Wages Expenses $7,920
Cr Salaries and Wages Payable $7,920
(9 employees * $11 per hour * 8 hours per day * 10 days = $7,920)
(Record Accrue the expense and liability for Vacations)
2020
Dr Salaries and Wages Expenses $4,752
Cr Salaries and Wages Payable $4,752
(9 employees * $11 per hour * 8 hours per day * 6 days = $4,752)
(Record Accrue the expense and liability for Sick Pay)
2020
Dr Salaries and Wages Expenses $648
($7,128-$6,480)
Dr Salaries and Wages Payable $6,480
(9 employees * $10 per hour * 8 hours per day * 9 days = $6,480)
Cr Cash $7,128
( 9 employees * $11 per hour * 8 hours per day * 9 days = $7,128)
(Record Vacation Time paid)
2020
Dr Salaries and Wages Expenses $ 144
Dr Salaries and Wages Payable $3,816
[( 9 employees * $10 per hour * 8 hours per day * 2 days = $1,440)-(9 employees * $11 per hour * 8 hours per day * 3 days = $2,376)]
Cr Cash $3,960
( 9 employees * $11 per hour * 8 hours per day * 5 days = $3,960)
(Record Sick Leave Paid)
B. Computation for the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020
2019
Vacation Wages Payable at December 31, 2019=$0 + $7,200 - $0
Vacation Wages Payable at December 31, 2019 = $7,200
Sick Pay Wages Payable at December 31, 2019=$0 + $4,320 - $2,880
Sick Pay Wages Payable at December 31, 2019= $1,440
2020
Vacation Wages Payable at December 31, 2020=$7,200 + $7,920 - $6,480
Vacation Wages Payable at December 31, 2020 = $8,640
Sick Pay Wages Payable at December 31, 2020=$1,440 + $4,752 - $3,816
Sick Pay Wages Payable at December 31, 2020= $2,376
B MC Qu. 12-143 Analysis reveals that a company had a net increase... Analysis reveals that a company had a net increase in cash of $20,440 for the current year. Net cash provided by operating activities was $18,400; net cash used in investing activities was $10,200 and net cash provided by financing activities was $12,240. If the year-end cash balance is $24,600, the beginning cash balance was:
Answer:
$4,160
Explanation:
Calculation for what the beginning cash balance was:
Using this formula
Beginning cash balance=Ending balance-Increase in cash
Let plug in the formula
Beginning cash balance = $24,600 − $20,440 Beginning cash balance= $4,160
Therefore the beginning cash balance was: $4,160
A loss contingency can be accrued when it is certain that funds are available to settle the disputed amount. the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred. it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated. an asset may have been impaired.
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 60,700 tons from the Casting Department. During July, the Rolling Department completed 74,500 tons, including 19,300 tons of work in process on July 1. The ending work in process inventory on July 31 was 5,500 tons.
Required:
How many tons were started and completed during July?
Answer:
1092749
Explanation:
the answer came by adding all the value of the equation
You have the following information for Bonita Industries for the month ended October 31, 2022. Bonita uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 65 $22 Oct. 9 Purchase 130 24 Oct. 11 Sale 90 45 Oct. 17 Purchase 90 25 Oct. 22 Sale 65 50 Oct. 25 Purchase 75 27 Oct. 29 Sale 100 50 (a1) Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.)
Answer:
the weighted average cost per unit is $24.514 per unit
Explanation:
The computation of the weighted average cost is shown below:
= Total cost of goods available ÷ number of units
= {(65 × $22) + (130 × $24) + (90 × $25) + (75 × $27)} ÷ (65 + 130 + 90 + 75)
= ($1,430 + $3,120 + $2,250 + $2,025) ÷ ( 360 units)
= $8,825 ÷ 360 units
= $24.514 per unit
Hence, the weighted average cost per unit is $24.514 per unit
How would an increase in taxes influence the size of the multiplier in a four sector?
Presented below is information related to Shamrock Corp., which sells merchandise with terms 2/10, net 60. Shamrock Corp. records its sales and receivables net. July 1 Shamrock Corp. sold to Warren Harding Co. merchandise having a sales price of $15,000. 5 Accounts receivable of $14,300 (gross) are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period.) 9 Specific accounts receivable of $14,300 (gross) are pledged to Alf Landon Credit Corp. as security for a loan of $6,500 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Dec. 29 Warren Harding Co. notifies Shamrock that it is bankrupt and will pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on July 11 when the discount period passed.)
Answer:
Shamrock Corp.
Entry to write off the uncollectible balance of Warren Harding Co.:
Debit Allowance for Uncollectible accounts $13,500
Credit Accounts Receivable $13,500
To write off the uncollectible account.
Explanation:
a) Data and Calculations:
Credit terms = 2/10, net 60. This means that 2% discount is allowed to each customer for making payment within 10 days and the longest credit is 60 days.
Sales to Warren Harding Co = $15,000
Amount debited to Accounts Receivable = 14,700 ($15,000 * 98%)
Amount paid by Warren (10%) = $1,500
Amount to be written off as uncollectible = $13,500
Discount of $300 will be reversed with a debit to the Accounts Receivable and a credit to Discount Allowed (since the Shamrock Corp. records its sales and receivables net.)
Cash of $1,500 will be debited and Accounts Receivable credited to record the 10% of $15,000 cash receipt from Warren Harding Co. The remaining amount, which is $13,500 will be written off with a debit to Allowance for Uncollectible accounts and a credit to Accounts Receivable.
The break-even point is the sales level at which a company: (Check all that apply.) Multiple select question. has a profit of $0. total sales equals total cost. incurs a loss. has a profit equal to fixed costs. contribution margin equals variable costs.
Answer:
has a profit of $0
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Breakeven price = (fixed cost / quantity sold) + variable price per unit
Sweet Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Sweet estimates returns of 15%. Sweet sells these planters on account for $1,630,000 (cost $733,500) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020.
Required:
Prepare the journal entry for Bridgeport at January 2, 2020.
Answer:
January 2, 2020
Dr Accounts Receivable $1,630,000
Cr Sales Revenue $1,630,000
Dr Cost of Goods Sold $733,500
Cr Inventory $733,500
Explanation:
Preparation of the journal entry for Bridgeport at January 2, 2020
January 2, 2020
Dr Accounts Receivable $1,630,000
Cr Sales Revenue $1,630,000
(To recognize revenue)
Dr Cost of Goods Sold $733,500
Cr Inventory $733,500
(To record cost of goods sold)
The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs:
Activity Cost Driver
Activity 1 Direct materials CostActivity 2 Direct Labor Cost
Activity 3 Kilowatt Hours
Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:
Product A Product B Product C
Direct material cost $75,000 $50,000 $125,000
Direct Labor Cost $6,600 $1,000 $3,000
Direct Labor hours $2,000 $1,000 $2,000
Kilowatt hours $150,000 $200,000 $150,000
Indirect productioncosts for the month are as follows:
Activity 1 $30,000
Activity 2 $20,000
Activity 3 $16,000
Total $66,000
A.) Compute the indirect production costs allocated to each product using the ABC system?
B.) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours?
Which of the following is an example of an instance of public health education that created positive externalities?
teaching pregnant women hygienic practices in the early 1900s
people learning the importance of washing their hands
public campaigns against smoking in the late 1900s
all of the above
Answer:
D.) All of the above
Explantin
Teaching preg women abt hygienic practicers helped prevent infection because preg women are more prone to infections since they sweat more and stuff... (due to hormone)
People learning the importance of wash their hands is important because it helps prevent the spread of dieases. For example the infamous coronavirus
Public campaign against smoking was important in the 1990s because people back then didn't know smoking could cause. It caused cancer stroke lung dieases etc
Houseman, Inc. anticipates sales of 50,000 units, 48,000 units, 51,000 units and 50,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September
Answer:
50,600 units
Explanation:
The computation of the number of units to be produced in September is given below:
= sales + ending inventory - opening inventory
= 51,000 units + (40% of 50,000 units) - (40% of 51,000 units)
= 51,000 units + 20,000 units - 20,400 units
= 50,600 units
Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $740,000 one month prior to the start of its current fiscal year and paid back the $740,000 plus interest two months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year
Answer:
Last Fiscal Year:
Interest Expense = $5550
Current Fiscal Year:
Interest Expense = $11100
Explanation:
According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.
This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,
Last Fiscal Year = 740000 * 9% * 1/12 => $5550
Current Fiscal Year = 740000 * 9% * 2/12 => $11100
XYZ company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labor per unit is 2 hours at a rate of $26 per hour. Manufacturing overhead (all fixed costs) is applied based on labor hours at a rate of $36 per hour. XYZ makes and sells 1,000 units per period. How many units must XYZ sell to breakeven
Answer:
818 units
Explanation:
Unit Contribution margin
= 300 - 160 - (2 × $26)
= $88
Fixed cost period
= (2 × $36) × 1,000 units
= $72,000
Break even = Fixed cost / Contribution margin
Break even = $72,000 / $88
Break even = 818 units
Therefore, XYZ company must sell 818 units to break even.
Jennifer is the CEO of JustFixIt Inc., a firm that merges technology with commercial hardware. She has been struggling with the decision to allocate her resources for the development of a new system or go to the market and search for an already established system. The Board of Directors for JustFixIt Inc. suggested that enter a contractual agreement with a partner. This scenario best illustrates the concept of
Answer:
When ASI Inc. declared a dividend of $20,000,000, its market value increased from $8 ... Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s ... CEO of JustFixIt Inc., a firm that merges technology with commercial hardware. She has been struggling with the decision to allocate her resources for the ...
Explanation:
Discuss the benefits of businesses that are involved in the macro environment
For a $150,000 mortgage, with interest rate 5,5%, paid over 15 years, the monthly payment is $1,225,63. After 2 monthly
payments, what is the balance of the loan?
Round to the nearest cent. Do not include the dollar sign or commas in the answer box.
Madson Company is analyzing several proposed investment projects The firm has resources only for one project Project P Project Q Project R Project S Project T Cost of investment $32,000 $38,200 $57,100 $47,400 $53,000 Net cash flow Year 1 $5,200 $3,200 $4,300 $26,000 $15,900 Year 2 $9,600 $15,300 $16,900 $8,400 $15,800 Year 3 $12,700 $14,700 $21,000 $6,400 $16,100 Year 4 $15,300 $19,300 $31,000 $4,300 $11,000 Year 5 $52,000 $2,100 $10,000 The company uses the payback period method for making capital investment decisions. On the basis of this decision model, which project should be selected? (Ignore taxes.) a. Project T b. Project Q c. Project P d. Project R e. None
Answer:
Madison Company
On the basis of the payback period decision model, the project that should be selected is:
c. Project P
Explanation:
a) Data and Analysis:
Project P Project Q Project R Project S Project T
Cost of investment $32,000 $38,200 $57,100 $47,400 $53,000
Net cash flow
Year 1 $5,200 $3,200 $4,300 $26,000 $15,900
Year 2 $9,600 $15,300 $16,900 $8,400 $15,800
Year 3 $12,700 $14,700 $21,000 $6,400 $16,100
Year 4 $15,300 $19,300 $31,000 $4,300 $11,000
Year 5 $52,000 $2,100 $10,000
Total net cash flow $94,800 $54,600 $83,200 $45,100 $58,800
Year 4 Year 4 Year 4 Unable Year 4
b) While four of the five projects pay back within Year 4, Project P has the added advantage of more total cash inflows. It is followed closely by Project R. The payback period as a capital appraisal method relies on counting the years or periods when the project's investment will be recovered. The payback period method does not evaluate projects based on the time value of money unless the modernized discounted payback period method is used.
The payback period method is a method that considers the number of months or years it takes to return the initial investment.
When more than one investment is being considered under payback period, the investment with the shortest payback period will be selected.
Since the net cash inflows of each year for each project is different, the following formula is used in the attached photo to calculate the payback period:
Payback period = A + (X / Y) ………………….. (1)
Where:
A = Year immediately preceding to year of recovery
X = Amount left to be recovered
Z = Cash inflow in the year of final recovery
Before equation (1) is used, cumulative net cash inflows is first calculated as done in the attached photo.
From the attached photo, we have:
Project P’s payback period = 3.29 years
Project Q’s payback period = 3.26 years
Project R’s payback period = 3.48 years
Project S’s payback period = after 5 years
Project T’s payback period = 3.47 years
Based on above the above, b. Project Q should be selected because it has the shortest payback period which is 3.26 years.
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Which type of company only spends money when absolutely necessary?
Cash includes currency and coins, balances in checking accounts, and items acceptable for deposit in these accounts, such as checks and money orders received from customers. These forms of cash represent amounts readily available to pay off debt or to use in operations, without any legal or contractual restriction. A company had the following balances in various cash accounts on its balance sheet: Checking account balance $12,300 Savings account balance 34,500 Petty cash fund 1,200 What amount should be reported as cash under the current assets section of the company's balance sheet
Answer:
$48,000.
Explanation:
For the Cash balance to be reported, consider the total of all cash and cash equivalents which can be used up by the company within a period of 12 months.
Checking account balance $12,300
Savings account balance $34,500
Petty cash fund $1,200
Total $48,000
The amount should be reported as cash under the current assets section of the company's balance sheet is $48,000.
Which of the following is a reason for hedging a long-only portfolio with an index futures? The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market The investor believes the stocks in the portfolio will perform better than the market and the market is expected to do well The portfolio is not well diversified and so its return is uncertain All
Answer:
The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market
Explanation:
Hedging can be regarded as strategies
utilize by investors so that there would be a reduction in exposure to risk especially in event whereby asset in their portfolio can experience
sudden price decline. It's a strategy that reduce uncertainty as well as losses. It should be noted that one of the reason for hedging a long-only portfolio with an index futures is that investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market
There are different reason for hedging a long only portfolio with an index futures. The option that is a reason for hedging a portfolio with an index futures is that;
The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market.Note that index futures can be used to as a means to remove the influence of the performance of the overall market on the portfolio.
When the market is said to be doing well, that is hedging against the performance of the market is not right and therefore Hedging cannot be a means to right any wrong for a poorly diversified portfolio.
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On November 2, 2020, Ellie purchased and placed in service a building that cost $5,600,000. An appraisal determined that 15% of the total cost was attributed to the value of the land. The bottom floor of the building is leased annually to a retail business for $80,000. The other floors of the building are rental apartments with an annual rent of $350,000.A. How is the property classified for MACRS? B. What is the life of the asset for MACRS?C. Ellie's cost recovery for 2018 is_____.
Answer:
Ellie
A. The property is classified for 27.5-year MACRS since more than 80% of the gross rental income emanates from residential dwellings.
B. The life of the asset for this type of MACRS is 27.5 years.
C. Ellie's cost recovery for 2020/2018 is $28,848.
Explanation:
a) Data and Calculations:
Cost of building and land = $5,600,000
Appraised cost of land = $840,000 ($5,600,000 * 15%)
Appraised cost of building = $4,760,000 ( ($5,600,000 * 85%)
Rent from the bottom floor leased to a retail business = $80,000
Rent from the other floors as rental apartments = $350,000
Total value of rental income = $430,000
Retail business % of rental income = 19%
Residential apartments % of rental income = 81%
Cost recovery = $173,091 ($4,760,000/27.5) per annum
For 2 months, the cost recovery = $28,848 ($173,091 * 2/12)
Oval Company acquired a machine that involved the following expenditures and related factors: Gross invoice price $76,000 Sales tax 2,850 Cash discount taken 1,140 Freight 1,350 Assembly of machine 1,800 Installation of machine 2,700 Assorted spare parts for future use 5,400 Tuning and adjusting machine before use 900 The initial accounting cost of the machine should be:
Answer:
$78,760
Explanation:
Cost of Machine include Purchase Price plus any costs directly incurred in bringing the asset in location and condition intended for use by management.
Calculation of Cost of Machine
Purchase Price $76,000
Sales Tax ($2,850)
Cash discount ($1,140)
Freight $1,350
Assembly Cost $1,800
Installation Cost $2,700
Tuning and adjusting $900
Total Cost $78,760
A bank receives a deposit for $50,000. If the bank has a 10 percent reserve
requirement, approximately how much money could this initial deposit
eventually add to the economy?
Answer:
$500,000
Explanation:
ap ex
A bank having a 10 percent reserve requirement will add $500,000 to the economy on receiving $50,000 as a initial deposit.
Reserve requirements are the sums of money that a bank must have in reserve in order to cover liabilities in the event of an unexpected withdrawal. Reserve requirements are a technique used by the central bank to influence interest rates by increasing or decreasing the money supply in the economy.
According to the question, reserve requirement is 10%, and the initial deposit is $50,000.
Therefore, $50,000+$50,000×10/100 will result in the money that could be added to the economy, which is $500,000.
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Suppose there is one ticket left for tonight’s performance of Hamilton on Broadway. The ticket costs $700. Sean is a community college student and has been saving his tips from his waiting job for months to see the show. He is willing to pay $705 for the ticket. Anca has seen Hamilton five times already but wants to see it again before heading to Europe for a month. She is willing to pay $1,250 for the ticket. _____buying the ticket leads to a more economically efficient outcome. „
A. Neither Sean nor.
B. Anca.
C. Sean and Anca both.
D. Sean.
Answer: B. Anca
Explanation:
From the information provided in the question, we should note that Anca purchasing the tickets will lead to a more economically efficient outcome.
From the information given, we can see that Anca is willing to pay $1250 while Sean wants to pay $705. Therefrom Anca purchasing the tickets leads to a better efficiency.
We can also infer that if Anca pays $1,250, a consumer surplus of $550 is gotten while Sean would get a consumer surplus of only $5.
Therefore, the correct option is B.
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $400,000. Actual warranty expenditures in January of the following year were $13,000. Required: 1. Does this situation represent a contingent liability? Why or why not?2. Record warranty expenditures and warranty liability for the month of December based on 6% of sales.3. Record the payment of the actual warranty expenditures of $13,000 in January of the following year. 4. What is the balance in the Warranty Liability account after the entries in Requirements 2 and 3?
Answer:
1. Yes, because it is probable and can be reasonably estimated.
2. Debit Warranty Expense for $24,000; and Credit Warranty Liability for $24,000.
3. Debit Warranty Liability for $13,000; and Credit Cash for $13,000.
4. Balance in the Warranty Liability account = $11,000
Explanation:
1. Does this situation represent a contingent liability? Why or why not?
Yes, this situation represent a contingent liability.
This is because a contingent liability can be described as a liability that is probable with an amount that can be reasonably estimated.
2. Record warranty expenditures and warranty liability for the month of December based on 6% of sales.
Warranty expense = Sales for the month of December * Expected warranty costs as a percentage of sales = $400,000 * 6% = $24,000
Therefore, the journal entries will look as follows:
Date General Journal Debit ($) Credit ($)
Dec. Year 1 Warranty Expense 24,000
Warranty Liability 24,000
(To record warranty expenditures and liability.)
3. Record the payment of the actual warranty expenditures of $13,000 in January of the following year.
The journal entries will look as follows:
Date General Journal Debit ($) Credit ($)
Jan. Year 2 Warranty Liability 13,000
Cash 13,000
(To record actual warranty expenditures.)
4. What is the balance in the Warranty Liability account after the entries in Requirements 2 and 3?
Balance in the Warranty Liability account = Warranty Liability - Cash paid = $24,000 - $13,000 = $11,000
The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaper is published 252 days per year (5 days per week, except holidays). If a 10% nominal annual interest rate compounded quarterly is used: What is the effective annual interest rate in this problem?
Answer:
The effective annual rate of interest is "10.38%".
Explanation:
The given values are:
Nominal annual interest rate,
Q = 10%
i.e.,
= 0.10
Quarterly compounding,
q = 4
Now,
The effective annual rate of interest will be:
= [tex][{1 + (\frac{Q}{q} )}^q] - 1[/tex]
On substituting the given values in the above formula, we get
= [tex][{1 + (\frac{0.10}{4} )}^4] 1[/tex]
= [tex][(1 + 0.025)^4] - 1[/tex]
= [tex](1.025)^4-1[/tex]
= [tex]1.10381289 - 1[/tex]
= [tex]0.10381289[/tex]
On converting it into percentage, we get
= [tex]10.38[/tex]%
