Answer:
a. How much gross income must Kelly recognize?
$0, the distribution will not increase her gross income.
b. What is the basis of each stock right received?
{[(500 x $10)/ (500 x $10 + 500 x $40)] x $70,000} / 500 shares= $14,000 / 500 = $28
c. If she sells the 100 stock rights for $9,000, what is her gain?
gain = $9,000 - (100 x $28) = $6,200
d. If she exercises the 100 stock rights on September 8, what is the basis of the 100 shares she receives and when does the holding period for those shares start?
basis = $2,800 + (100 x $110) = $13,800
Barbara, a product manager at an organic soap manufacturing company, is supposed to interview a candidate for a new job opening in her department. The candidate arrives late to the interview, and therefore Barbara assumes that he will be tardy and uninterested in his job as well. Despite the fact that the candidate meets all the job requirements, Barbara rejects the candidate. Which of the following interview errors has Barbara most likely made?
A. The first-impression error.
B. The similarity error.
C. The contrast error.
D. The non-relevancy error.
Answer:
A. The first-impression error.
Explanation:
It is correct to say that Barbara probably made the first-impression error in the interview, because this error occurs when there are initial judgments about a candidate in the interview, it was what happened when Barbara thought that the candidate would be disinterested at work due to his late to the interview even the candidate meeting all the requirements of the position.
This error can be based on positive and negative judgments and can directly influence a job hiring.
Research shows that global managers face a much different leadership context as compared to their domestic counterparts.
a. True
b. False
Answer:
a. True
Explanation:
The statement is correct due to the fact that global managers have a leadership style focused on a multicultural environment, while domestic managers have a leadership trait that is directly impacted by local culture, as is the case, for example, of company managers in Muslim countries. , where there is a code of conduct and management very different from that practiced in companies in America for example. There are several leadership styles, some of which are autocratic, human and participatory, and the local and organizational culture directly influences the style of domestic management.
1. Which statement about leaders and managers is most likely false?
a)
Managers are concerned with the efficiency of results, whereas leaders are
primarily concern with results.
b)
Leaders focus on risk taking whereas managers focus on planning
c)
Leaders accept the status quo, managers challenge it.
d)
Leaders develop but managers maintain.
Answer:
I'd say A!
Explanation:
hope this helps! sorry if it's wrong
The Category Profile that involves evaluating the major forces and trends that are impacting an industry: including pricing, competition, regulatory forces, technology, and demand trends is called the:
Answer: External Industry Analysis
Explanation:
External Industry Analysis simply refers to the examination of the industry environment of a particular company such as its dynamics, competitive position, history etc.
The external industry analysis on a macro scale has to do with examining the factors like technological, political, demographic, and social analysis. External industry analysis is vital as it shows the threats and the opportunities that exist in a particular industry and can also be used to determine growth of an organization.
The term that explains Category Profile and its relationship with evaluation of major force as well as trends that has impact on a particular industry such as competition, technology as well as price is called External analysis
External analysis can be regarded as Category Profile which helps in the evaluation of factors such as forces and trends and how they influence a particular industry.These forces could be;
technology pricingcompetitionregulatory forcesTherefore, External analysis examine the environment of an industry and determine the opportunities as well as threats in a particular industry.
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TPW, a calendar year taxpayer, sold land with a $549,000 tax basis for $820,000 in February. The purchaser paid $89,000 cash at closing and gave TPW an interest-bearing note for the $731,000 remaining price. In August, TPW received a $60,550 payment from the purchaser consisting of a $36,550 principal payment and a $24,000 interest payment. Assume that TPW uses the installment sale method of accounting.
a. Compute the difference between TPW's book and tax income resulting from the installment sale method.
b. Is this difference favorable or unfavorable?
c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Compute the difference between TPW's book and tax income resulting from the installment sale method. (Round gross profit percentage to 2 decimal places, and intermediate calculations to the nearest whole dollar amount.)
Book/tax difference
Answer:
a. Difference between book income and tax income = $229,505.73
b. The difference between book income and tax income is favorable.
c. Deferred tax liability = $48,196.20
Explanation:
a. Compute the difference between TPW's book and tax income resulting from the installment sale method.
This can be computed as follows:
Amount realized on sale of land = Cash paid by purchaser + Value of interest- bearing note given by the purchaser = $89,000 + $731,000 = $820,000
Adjusted tax basis in land = $549,000
Book income = Amount realized on sale of land - adjusted tax basis in hand = $820,000 - $549,000 = $271,000
Gross profit percent = Book income / Amount realized on sale of land = $271,000 / $820,000 = 0.3305, or 33.05%
Cash received on sale of land = Cash paid by purchaser + Principal payment received in August = $89,000 + $36,550 = $125,550
Tax income =Cash received on sale of land * Gross profit percent = $125,550 * 33.05% = $41,494.28
Difference between book income and tax income = Book income - Tax income = $271,000 - $41,494.28 = $229,505.73
b. Is this difference favorable or unfavorable?
Since the book income greater than the tax income, this implies that the difference between book income and tax income is favorable.
c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.
Deferred tax liability = Difference between book income and tax income * 21% = $229,505.73 * 21% = $48,196.20
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $327,600. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 25,200 and 8,800 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Round your answers to the nearest cent. $fill in the blank 1 per equivalent unit of materials $fill in the blank 2 per equivalent unit of conversion costs
Answer:
$13 per Equivalent Unit of Materials,
$60 per Equivalent Unit of Conversion Costs
Explanation:
Calculation to Determine the direct materials and conversion cost per equivalent unit
Direct materials equivalent units=($327,600/25,200 liters )
Direct materials equivalent units=$13
Conversion Costs equivalent units
=($528,000/8,800 liters)
Conversion Costs equivalent units= $60
Four hospitals are located within a city at coordinate points P1=(10,20), P2=(14,12), P3=(8,4) and P4=(32,6). The hospitals are served by a centralized blood bank facility that is located in the city. The number of deliveries to be made each year between the blood bank facility and each hospital is estimated to be 450, 1200, 300, and 1500 respectively. If it is desired to locate the blood bank at a point that minimizes the weighted distance traveled per year, where should it be located
(i) if travel is rectilinear in the city
(ii) if travel is measured in Euclidean distance.
Answer:
The coordinates of the location of the Blood bank = ( 20.7826, 9.73913 )
Explanation:
Coordinates of the Four(4) hospitals are
P1=(10,20), P2=(14,12), P3=(8,4) and P4=(32,6)
Number of deliveries to be made each year for each hospital respectively:
450, 1200, 300, and 1500
conditions :
(i) if travel is rectilinear in the city
(ii) if travel is measured in Euclidean distance.
Determine where the Blood bank is to located to minimize weighted distance travelled each year
find the values of the below variables :
Total load of the Hospitals( ∑load ) = 450 + 1200 + 300 + 1500 = 3450
Lx = ∑x * load = ∑ 10*450 + -------- + 32*1500 = 71700
Ly = ∑y * load = ∑ 20*450 +--------- + 6*1500 = 33600
The coordinates of the Blood bank = [ ( Lx / ( ∑load ) ) , Ly / ( ∑load ) ]
=[ (71700/3450) , (33600/3450) ]
Hence The coordinates of the location of the Blood bank = ( 20.7826, 9.73913 )
Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 20X1, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 20X1 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 20X1. At the end of 20X1, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company.
Perry should record the receipt of the Baker dividend as:______
a. DR Cash 2,400 CR Investment in Baker 2,400
b. DR Cash 240 CR Dividend income 240
c. DR Cash 2,400 CR Dividends receivable 2,400
d. DR Dividends receivable 2,400 CR Dividend income 2,400
Answer:
Perry Investments
Perry should record the receipt of the Baker dividend as:______
c. DR Cash 2,400 CR Dividends receivable 2,400
Explanation:
a) Data and Calculations:
Investment in Able, Inc common stock = 2,000 on January 1, 20X1, at a cost of $20,000; December 31, 20X1 fair value = $18,000
Investment in Baker, Inc. common stock = 2,000 on July 1, 20X1, at a cost of $24,000; December 31, 20X1 fair value = $28,000.
Baker's previously declared dividends on December 31, 20X1 = $2,400
b) Since Baker declared the dividends previously, Perry must have debited its Dividends Receivable account. Now that payment had been made by Baker, the Dividends Receivable will be credited while the Cash account is debited.
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A four-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
A two-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
_____ is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
______ is an on-the-job training experience in which the learner works at a job under the direction of an expert.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
Answer:
A four-year college-level degree is called
A.) ✔ a bachelor’s degree.
A two-year college-level degree is called
B.) ✔ an associate degree.
_______is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
B.) ✔ A career college.
_______is an on-the-job training experience in which the learner works at a job under the direction of an expert.
C.) ✔ An apprenticeship
Explanation:
I hope this helps!!! :))
There are different kinds of program. The answers are below;
A four-year college-level degree is called a bachelor’s degree.
A two-year college-level degree is called an associate degree.
A career college is a program that is usually no longer than one or two years.
An apprenticeship is an on-the-job training experience in which the learner works at a job under the direction of an expert.
What is an apprenticeship?An apprenticeship is known to be a set up of
job training and classroom learning together that tends to help one to a trade credential.
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When Valley Co. acquired 80% of the common stock of Coleman Corp., Coleman owned land with a book value of $75,000 and a fair value of $125,000. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date
Answer:
$10,000
Explanation:
The amount of excess land allocation attributed to the non controlling interest at the acquisition date is computed below;
Non controlling interest of acquisition date
= (Book value of land - Fair value of land) × 20%
Given that;
Book value of land = $125,000
Fair value of land = $75,000
Then,
Non controlling interest of acquisition date
= ($125,000 - $75,000) × 20%
= $50,000 × 20%
= $10,000
Question 9 of 10 Which of the following is a good example of responsible concern for consumer rights? O A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business, O B. A snack food manufacturer knows that their snacks contain only minor traces of common allergens, such as peanuts, and doesn't want to cause unnecessary worry, so they don't identify this on the food labels. C. An employer is very concerned about the well being of his employees. He decides to sponsor their membership to a health club and pay for routine consultations with a dietician D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Answer:
D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Explanation:
Answer:
A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business.
Explanation:
It is correct.
Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 140 shares of its common stock on May 1 for $7,000. On July 1, it reissued 70 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2
Answer: $70
Explanation:
First, we need to calculate the purchase price per share and this will be:
= Purchase amount / Number of shares bought
= $7000 / 140
= $50 per share
Therefore, the balance in the Paid-in Capital, Treasury Stock account on August 2 will be:
= [70 × ($52 - $50)] + [70 × ($49 - $50)]
= (70 × $2) + ($70 × $-1)
= $140 - $70
= $70
Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm's marginal tax rate is 40 percent. What is the after-tax cost of debt
9. Calculating the price elasticity of supply Rajiv is a college student who lives in Chicago and does some consulting work for extra cash. At a wage of $40 per hour, he is willing to work 7 hours per week. At $50 per hour, he is willing to work 10 hours per week. Using the midpoint method, the elasticity of Rajiv's labor supply between the wages of $40 and $50 per hour is approximately , which means that Rajiv's supply of labor over this wage range is .
Answer:
PES = 1.59 elastic
Explanation:
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
% change in quantity = (Q2 - Q1) / [(Q2 + Q1) / 2] = (10 - 7) / [(10 + 7) / 2] = 3 / 8.5 = 35.29%
% change in price = (50 - 40) / [(50 + 40) / 2] = 10 / 45 = 22.22%
PES = 35.29% / 22.22% = 1.59 elastic
Bruin Company received a $100,000 insurance payment on the death of its company president. The company annually paid $1,000 of non-deductible insurance premiums on the policy. Bruin reported the insurance receipt as income and deducted the premium payments on its books. For ASC 740 purposes, the income and deduction are characterized as:
Answer:
The description as per the given scenario is explained in the segment below.
Explanation:
The receipt of benefits would be a mandatory beneficial improvement as well as the premium charge seems to be a permanently undesirable distinction to be made.Besides ASC 740 considerations, the profits earned as initial deposit mostly on the dissolution of the organization's president as well as higher price loss on either the policy shall be defined as a permanent insurance gain as well as a constant unfavorable premium gap.9. Stabilization Suppose the US educational system improves, making workers more productive. If the federal reserve is trying to stabilize the price level in response, they should A. do nothing, because prices will not change anyhow. B. do nothing, because prices cannot be prevented from changing in the long run C. sell bonds in open market operations. D. lower the reserve requirement. E. increase the discount rate F. Raise taxes. G. Increase government spending.
Answer:
d
Explanation:
If workers become more productive, the supply curve shifts rightward. As a result prices would fall. In a bid to stabilise price, the federal reserve would conduct an expansionary monetary policy to increase money supply in the economy
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing reserve requirement and open market purchase are ways of carrying out expansionary monetary policy
Increasing discount rate and selling bonds are examples of contractionary monetary policies. Contractionary monetary policy : these are policies taken to reduce money supply.
Raising tax is an example of contractionary fiscal policy
Increasing government spending is an example of expansionary fiscal policy
The first step in the decision-making process involves
a. defining the problem
b. setting a goal
O c. identifying the choices
d. evaluating alternatives
The first step in the decision-making process involves option A. defining the problem. The correct answer is option A. defining the problem.
What do you do first when making decision?When making a decision, it is essential to clearly understand and define the problem or the issue at hand. This step involves identifying the specific challenge or opportunity that requires a decision.
By defining the problem, you can gain a better understanding of what needs to be addressed and begin formulating potential solutions. Once the problem is defined, you can proceed to the subsequent steps of the decision-making process, such as setting goals, identifying choices, and evaluating alternatives.
Therefore, the correct answer is option A. defining the problem as identified above.
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ENETEAU CORPORATION
Comparative Balance Sheet
2020 2019
Assets
Cash $37,000 $31,000
Accounts receivable (net) 80,000 60,000
Prepaid insurance 22,000 17,000
Land 18,000 40,000
Equipment 70,000 60,000
Accumulated depreciation (20,000) (13,000)
Total assets $207,000 $195,000
Liabilities and Stockholder's Equity
Accounts payable $12,000 $6,000
Bonds payable 27,000 19,000
Common stock 140,000 115,000
Retained earnings 28,000 55,000
Total liabilities and stockholder's equity $207,000 $195,000
Additional information:
1. Net loss for 2020 is $12,000. Net sales for 2020 are $250,000.
2. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year.
3. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
4. The company issued and retired bonds in the current year. Retirement of bonds was $12,000.
5. Equipment was purchased for $22,000.
6. Stock was issued for $25,000
Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Answer:
See below
Explanation:
Statement of cash flows for the year ended December 31, 2020 using the indirect method.
Cash flow from operating activities:
Net loss = $12,000
Adjustment to reconcile net loss with cash flows from operating activities:
Depreciation = ($20,000 + $10,000 - $13,000) = $7,000
Loss on sale of land = $2,000
Increase in accounts receivable = ($20,000)
Increase in prepaid expense = ($5,000)
Increase in accounts payable = $6,000
Net cash used in operating activities = ($12,000)
Cash flow from investing activities
Sale of land = ($40,000 - $18,000 - $2,000) = $20,000
Sale of equipment = $5,000
Net cash generated by investing activities = $25,000
Cash flow from financing activities
Retirement of bond = ($12,000)
Proceeds from issuance of bonds = $20,000
Net cash used by financing activities = $8,000
Net increase in cash = $6,000
Add: beginning cash balance = $31,000
Ending cash balance = $37,000
Workings
• Calculation of depreciation
The accumulated depreciation at the end of the year 2020 = ($20,000)
Hence;
Accumulated depreciation at the end of the year 2020 = ($13,000)
Increase in accumulated depreciation during 2020 = $20,000 - $13,000 = $7,000
Add: accumulated depreciation on equipment sold during 2017 = $10,000
Total depreciation expense for 2020 = $7,000 + $10,000 = $17,000
• Calculation of proceeds from sale of land:
Cost of land = $40,000 - $18,000 = $22,000
Loss on sale of land = $2,000
Therefore,
Proceeds from sale of land = cost of land sold - loss on sale of land
= $22,000 - $2,000
= $20,000
• Calculation of issuance of bonds payable during 2020
The bonds payable at the end of year 2019 = $19,000
Hence,
Bonds payable at the end of year 2020 = $27,000
Retirement of bonds during year 2020 = $12,000
Therefore,
Bonds issued during 2020 = $27,000 + $12,000 - $19,000 = $20,000
Congratulations! You just won your state lottery and will be receiving a check for $1 million. You have always wanted to own your own business and have noticed the increase in the number of food trucks in your local area. A new food truck with a kitchen and related equipment costs about $100,000. Other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $50,000 per year. You decide to offer traditional Mediterranean cuisine. Variable costs include food and beverages estimated at $6 per platter (meat, rice, vegetable and pita bread). Meals will be priced at $10. Calculate the break-even for your food truck business. After reviewing your break-even, what changes would you consider? Is this how you want to spend your lottery winnings?
Answer:
Explanation:
woABF
Answer:
no
Explanation:
For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and ending finished goods inventory of $250,000. The cost of goods sold is
Answer:
finished cost = $200,000
inventory cost=$250,000
manufactured cost= $600,000
cost of good= beginning inventory+purchase during period cost- ending inventory
$600,000+$200,000-$250,000
$550,000
Company A Company B Market Value of Equity $400,000 $600,000 Market Value of Debt $100,000 $800,000 Cost of Equity 9% 9% Cost of Debt 3% 4% Tax Rate 35% 35% Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 6.5%
Answer:
Company B should pursue the investment
Explanation:
To determine a profitable investment opportunity to pursue, we would compare the weighted average cost of capital WACC to the expected return on the investment opportunity. An investment return greater than the cost of capital implies a profitable investment and vice versa
The weighted average cost of capital (WAAC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
Lets first work the after tax cost of debt for the companies:
After tax- cost of debt = cost of debt × (1-tax rate)
Company A= 3%× (1-35%) = 1.95%
Company B = 4%× (1-35%)= 2.6%
WACC coy A= 9%× (4/4+1) + 1.95% × 1/(4+1) = 7.6%
WACC coy B= 9%× (6/6+8) + 2.6% × 8/(6+8) = 5.3%
Company B has a cost of capital of 5.3% which represents the minimum
return required by by the providers of capital. An investment an expected return of 6.% appears profitable as it is greater than the company's cost of fund of 5.3%
Company B should pursue the investment
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $31,000. A total of $2,800 was paid for installation and testing. During the first year, Milton paid $4,200 for insurance on the equipment and another $640 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $5,600. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 at the end of 10 years OR receive $50,000 today plus some annuity at the end of each year for 10 years. Using an interest rate of 5%, which of the following comes closest to the annuity that will make the present value of both prizes the same?
a. $172,782.65.
b. $38,431.68.
c. $122,782.65.
d. $15,900.91.
Answer:
Annual payment= $15,900.91
Explanation:
First, we need to calculate the present value of Prize 1:
PV= FV / (1 + i)^n
PV= 50,000 + [200,000 / (1.05^10)]
PV= $172,782.65
Now, we need to determine the annuity that would make equal both prizes:
Difference= 172,782.65 - 50,000= $122,782.65
To calculate the annuity that would have a PV of $122,782.65; we need to use the following formula:
Annual payment= (PV*i) / [1 - (1+i)^(-n)]
Annual payment= (122,782.65*0.05) / [1 - (1.05^-10)]
Annual payment= $15,900.91
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn is $25, and the cost of mowing the third lawn is $40. His producer surplus on the first three lawns of the day is $100. If Ronnie charges all customers the same price for lawn mowing, that price is a. $20. b. $60. c. $80. d. $180.
Answer:
b. $60
Explanation:
Produced surplus = Price producer is able to sell - Price producer would be willing to sell
Price the producer is able to sell = Producer surplus + Price producer would be willing to sell
= $100 + ($15 + $25 + $40)
= $180 for 3 lawn
Therefore, if Ronnie charges are customers the same price for lawn mowing, that price is
= $180 / 3
= $60
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $58,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 6 percent per year throughout your career.
Required: How much money will you have on the date of your retirement 40 years from today?
Answer:
The amount you will have on the date of your retirement 40 years from today is $1,904,087.20.
Explanation:
This can be determined using the formula for calculating the future value of growing annuity as follows:
FV = M * (((1 + r)^n - (1 + g)^n) / (r - g)) ...................................... (1)
Where
FV = Future value or the amount on the date of retirement = ?
M = First annual deposit = Annual salary * Deposit percentage = $58,000 * 3% = $1,740
r = annual interest rate = 11%, or 0.11
g = salary growth rate = 6%, or 0.06
n = number of years = 40 years
Substituting all the values into equation (1), we have:
FV = $1,740 * (((1 + 0.11)^40 - (1 + 0.06)^40) / (0.11 - 0.06))
FV = $1,740 * 1,094.30298736951
FV = $1,904,087.20
Therefore, the amount you will have on the date of your retirement 40 years from today is $1,904,087.20.
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following unit costs: Cost per Unit Direct materials $31 Direct labor 19 Variable overhead 8 In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:______.
a. $149,000.
b. $129.800.
c. $150,000.
d. $164,200.
e. $148.300.
Answer:
a. $149,000
Explanation:
Calculation to determine what The relevant costs of producing 2,400 units of product PQ107 internally are
Relevant Costs = (2,400 x $31) + (2,400 x $19) + (2,400 x $8) + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Costs= $149,000
ThereforeThe relevant costs of producing 2,400 units of product PQ107 internally are $149,000
What is a subreport?
A subreport is a report item that displays another report inside the body of a main report. Conceptually, a subreport in a report is similar to a frame in a Web page. It is used to embed a report within a report. Any report can be used as a subreport.
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss
a company acquired a truck for 130,000 residual value was estimated to be $20,000 the truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 10,000 miles for the first year. What is the amount of depreciation expesne for the first year calculated by the double
Answer:
$65,000
Explanation:
Depreciation Expense = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ 4 = 25 %
BVSLDP = $130,000 (FIRST YEAR)
therefore,
Depreciation Expense = 2 x 25 % x $130,000 = $65,000
In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 6,000,000 shares of common stock carrying a $1 par value, and 2,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2021, 4,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 2,000,000 shares of preferred stock are issued at $20 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021. (Assume net income for the first quarter 2021 was $1,600,000.)
Answer:
1. Jan-02
Dr Cash $ 40,000,000.00
Cr Common stock $ 4,000,000.00
Cr Paid-in capital – excess of par, common $ 36,000,000.00
Jan 02
Dr Cash $ 40,000,000.00
Cr Preferred stock $ 10,000,000.00
Cr Paid-in capital – excess of par, preferred $ 30,000,000.00
2. $81,600,000.00
Explanation:
1. Preparation of the journal entries to record these transactions
Jan-02
Dr Cash (4,000,000 x $10) $ 40,000,000.00
Cr Common stock ($1 par x 4,000,000 shares) $ 4,000,000.00
Cr Paid-in capital – excess of par, common $ 36,000,000.00
Jan 02 Cash (amount received) (2,000,000 x $20) $ 40,000,000.00
Preferred stock ($5 par x 2,000,000 shares) $ 10,000,000.00
Paid-in capital – excess of par, preferred (difference) $ 30,000,000.00
2. Preparation of the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021.
Nicklaus Corporation
Balance Sheet-Shareholders' Equity Section
September 30, 2018
Shareholders' equity
Preferred stock, $5 par, authorized 2,000,000 shares, issued and outstanding 2,000,000 shares$ 10,000,000
Common stock, $1 par, authorized 6,000,000 shares, issued and outstanding 4,000,000 shares $ 4,000,000.00
Paid-in capital – excess of par $ 66,000,000.00
Retained earnings $ 1,600,000.00
Total shareholders' equity$ 81,600,000.00