Answer:
- $ 80,000
Explanation:
The existing Power's profit margin is $0 ($41,700 - $41,700 + $0).
Dropping Windsor division has the following effect :
Increase in cost - opportunity cost of $ 80,000
The opportunity is due to lost contribution
Fixed costs are unavoidable thus, they are irrelevant when doing this calculation.
thus,
Power's profit margin will be - $ 80,000 if the Windsor division was dropped.
On January 1, 2016, Hage Corporation granted incentive stock options to purchase 21,500 of its common shares at $10 each. The options are exercisable after one year. The market price of common averaged $11 per share during the quarter ending on March 31, 2016. There was no change in the 150,000 shares of outstanding common stock during the quarter ended March 31, 2016. Net income for the quarter was $8,618. The number of shares to be used in computing diluted earnings per share for the quarter is (Round your final answer to whole number.): -
a. 171,500.
b. 150,000.
c. 151,955.
d. 169,545.
Answer:
c. 151,955
Explanation:
Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is
First step is to calculate the amount assumed to be exercised
Exercised amount= 21,500*$10 / $11 avg
Exercised amount=$l215,000/11 avg
Exercised amount= 19,545
Second step is to calculate the Net
Net=21,500-19,545
Net= 1,955
Now let calculate The number of shares to be used in computing diluted earnings per share
Using this formula
Number of shares=Outstanding+Net
Let plug in the formula
Number of shares=150,000 +1,955
Number of shares= 151,955
*diluted eps=$8,618 /151,955
Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 151,955
On January 1, 2018, UML Company leased a machine to UMB Corporation. The lease qualifies as a sales-type lease. UML paid $240,000 for the machine and is leasing it to UMB for $34,000 per year, an amount that will return 10% to UML. The present value of the lease payments is $240,000. The lease payments are due each December 31, beginning in 2018. What is the appropriate interest entry of UML on December 31, 2018
Answer:
Date Account Title Debit Credit
Dec 11, 2018 Interest receivable $20,600
Interest revenue $20,600
Explanation:
The interest receivable on December 31, 2018 would be based on the lease amount at the end of the year which will be the present value of the lease less the lease amount paid for the year:
Lease amount = 240,000 - 34,000
= $206,000
Interest receivable = 206,000 * 10%
= $20,600
The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:
Answer: only if the new chef's daily wage is $360 or less.
Explanation:
It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.
The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.
Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $53,200 with an adjusted basis of $31,920 for $35,112. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $15,960 for $10,374. What is the amount and character of Lena's gain or loss?
Answer:
Ordinary gain $3,192; Loss $5,586
Explanation:
Calculation to determine the amount and character of Lena's gain or loss
Based on the information given she has an ORDINARY GAIN § 1245 DEPRECIATION RECAPTURE of the amount of $3,192 calculated as ($35,112 − $31,920) from the sale of the first equipment as well as § 1231 LOSS of the amount of $5,586 ($10,374 − $15,960) from the sale of the second equipment.
Therefore the amount and character of Lena's gain or loss will be Ordinary gain of $3,192 and Loss of $5,586.
If the demand for meals at the Campus Café declines. This will result in...
What will happen to the equilibrium price,supply and quantity
Answer:The campus may have a surplus of cook food that will affect the schools budget
Explanation:
all this cook food will go to the garbage in not consumed anytime soon , the school board seeing this waste of food will probably reduced the food budget meaning less food for the students , and when the students start to eat again cafeteria food there will not be enough for everyone
Matching Items Reported to Cash Flow Statement Categories (Indirect Method)
Reebok International Ltd. is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using theindirect method are listed here.
Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)
_____ 1. Dividends paid
_____ 2. Repayments of long-term debt
_____ 3. Depreciation and amortization
_____ 4. Proceeds from issuance of common stock to employees
_____ 5. [Change in] Accounts payable and accrued expenses
_____ 6. Cash collections from customers
_____ 7. Net repayments of notes payable to banks
_____ 8. Net income
_____ 9. Payments to acquire property and equipment
_____ 10. [Change in] Inventory
Answer and Explanation:
The matching is as follows:
1. It is a financing activity
2, It is also a financing activity
3. It is an operating activity
4. It is a financing activity
5 It is an operating activity
6. It is NA
7. It is a financing activity
8. It is an operating activity
9. It is an investment activity
10. It is an operating activity
In this way, it should be matched with the transactions given in the question
The same would be relevant and considered
Consumption expenditures $ 4,150 Federal government purchases of goods and services 850 State and local government’s purchases 331 Investment 751 Proprietors income 150 Compensation of employees 4,080 Corporate profits 134 Taxes on corporate profits 23 Rental income 31 Capital consumption allowance 295 Indirect business taxes 130 Net interest 147 Exports 300 Imports 320 Undistributed corporate profits 111 Transfer payments 66 Personal taxes 45 Dividends 0 Income Earned from the Rest of the World 252 Income Earned by the Rest of the World 1,347 Social insurance taxes 222 Statistical discrepancy 5 Refer to Exhibit 7-1. What is the value of disposable income?
Answer:
The value of disposable income is $4,207
Explanation:
Dispossable income refers to the addition of income of an individual minus his taxes.
Therefore, the value of the value of disposable income can be calculated as follows:
Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207
Therefore, the value of disposable income is $4,207.
g Excess reserves refer to the Multiple Choice difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. difference between actual reserves and loans. difference between actual reserves and required reserves.
Answer:
difference between actual reserves and required reserves.
Explanation:
Banks must follow government regulations regarding the amount of required reserves that they must hold. Any amount of reserves over the required reserves are considered excess reserves. For example, a bank has $100 in reserves and the required reserves are $80, then the excess reserves = $20.
A local partnership is liquidating and is currently reporting the following capital balances: Barley, capital (50% share of all profits and losses) $ 44,000 Carter, capital (30%) 32,000 Desai, capital (20%) (24,000 ) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive
Answer:
Barley $29,000; Carter $23,000 ;Desai $0
Explanation:
Calculation to determine How much of this money should each of the partners receive
PARTNER WITH DEFICIT CAPITAL BALANCE
Barley,Capital(50%) Carter,Capital(30%)
Desai,Capital(20%)
Reported balances $44,000 $32,000 $(24,000)
Potential loss from Desai deficit
(split 5/8:3/8)
($15,000)($9,000) $24,000
Barley (5/8*$24,000=$15,000)
Carter (3/8*$24,000=$9,000)
Desai($15,000)($9,000) =$24,000
Cash distributions $29,000 $23,000 $0
Barley ($44,000-$15,000=$29,000)
Carter, ($32,000-$9,000=$23,000)
Desai($24,000-$24,000=0)
Therefore The amount of the money that each of the partners should receive is :
Barley $29,000; Carter $23,000 ;Desai $0
The distributable net income (DNI) of a fiduciary taxpayer: a.Marks the maximum amount of gross income that income beneficiaries must report when receiving distributions. b.Specifies the character of the distributions in the hands of the year's income beneficiaries. c.Constitutes the maximum amount for the fiduciary's distribution deduction. d.All of these choices are correct.
Answer: d. All of these choices are correct.
Explanation:
The Distributable Net income is the taxable income acquired by a person who is a beneficiary to a trust from that trust. It is therefore the maximum amount that they should report for taxation purposes when they receive distributions from their trusts.
It also specifies the character of the distribution and is the maximum amount that the fiduciary can deduct for distribution income purposes from their taxable income.
Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of goods by 50%. In the long run, what happens to the expected price level and what impact does this have on wage bargaining
Answer:
The expected price level falls., new wage contracts will be negotiated at a lower wage in the market.
Explanation:
In the case when the economy is in the long run equilibrium and the federal government decreased the goods purchase by 50%. So in the long run the expected price level would be decline and the effect on wage bargaining would be that the new wage control would be negotiated at a less wages in the market place
Therefore, the correct option is c
And, the same would be relevant
An all equity capitalized firm (i.e., no debt in the capital structure) is expected to produce a cash flow in the amount of $900,000 in its first year of operation. Cash flow is expected to grow at 2% annually for the foreseeable future each year thereafter. If the firm's investors require a 10% return, what is the estimated Market Value of the Firm
Answer:
Explanation:
Cash flow at end of year 1 = $900,000
Growth rate = 2%
Required rate of return = 10%
Estimated Market value = Cash flow at end of year 1 / (Required rate of return - Growth rate}
Estimated Market value = $900,000 / (0.10 - 0.02)
Estimated Market value = $900,000 / 0.08
Estimated Market value = $11,250,000
So, the the estimated Market Value of the Firm is $11,250,000
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $64,000; 20Y2, $128,000; 20Y3, $288,000; 20Y4, $368,000; 20Y5, $448,000; and 20Y6, $576,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 4% stock, $100 par, and 100,000 shares of common stock, $10 par.
Required:
Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years.
Answer:
Pecan Theatre Inc.
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 $2.08
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 $2.88
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 $4.16
Explanation:
a) Data and Calculations:
Outstanding common stock = 100,000 shares at $10 par
Outstanding 4% cumulative preferred stock = 40,000 at $10 par
Annual preferred stock dividend = 4% * 40,000 * $100
= $160,000
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 ($64,000/40,000) $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 ($128,000/40,000) $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 ($288,000/40,000) $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 ($160,000/40,000) $2.08 ($208,000/100,000)
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 ($160,000/40,000) $2.88 ($288,000/100,000)
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 ($160,000/40,000) $4.16 ($416,000/100,000)
Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is used for all costs incurred.
Record the the costs of $10,000 cash incurred on the used machine
Record the costs of $2,000 for an operating platform
2
2. Prepare journal entries to record depreciation of the machine at December 31.
(a) Its first year in operation.
(b) The year of its first disposal
Answer:
A. 2-Jan
Dr Machinery $240,000
Cr Cash $240,000
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
B. Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Explanation:
A. Preparation of the journal entries to record the machine's purchase and the costs to ready and install it
2-Jan
Dr Machinery $240,000
Cr Cash $240,000
(Being machinery purchased)
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
(Being expenses paid for machinery readies)
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
(Being installation charges paid)
B. Preparation of journal entries to record depreciation of the machine at December 31.
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
($240,000+$10,000+$2,000=$252,000)
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A. Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost). B. Because the zero profit in the long run is, in fact, zero accounting profit, and it matters only in the books. C. Because in the short run, her profit is always positive. D. Because the producer has a high cost of exiting this market, and it is better for her to continue operating at zero profit.
Answer:
Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).
Explanation:
Perfectly Competitive Market
This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.
Perfectly Competitive Industry
This is simply an industry where producers are said to be price takers.
Explicit Costs
These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.
Implicit Costs
These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.
It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.
Normally you will see US Labor Productivity Increasing at an annual rate of around 6%. In reading the book you should see that it must continue to increase for our country to continue to have the standard of living that we do. What seemed odd to me was that in the 3rd Quarter of 2009, while our country is in the midst of a very deep recession, this number went to 14.8%. In the 4th Quarter it dropped to 6.4% and in the 1st Quarter of this year it was at 2.5%. Why the Big Spike in the 3rd Quarter of 2009
Answer: c) Employees are fearful of losing their jobs, so they are working harder and complaining less.
Explanation:
Research has shown that during periods of recession, people tend to work harder than they do before the recession which has the effect of boosting productivity levels during that period.
The simply reason for this is, fear. In a recession, businesses come under a lot of pressure to reduce their workforce in order to save costs which leads to a rise in unemployment. Workers that are laid off are usually the unproductive ones so workers begin to put in more work during this time so that they do not get laid off.
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
a) true
b) false
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
a) true
b) false
3. When a corporation is formed, organization costs are recorded as an asset.
a) true
b) false
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
a) true
b) false
5. The number of issued shares is always greater than or equal to the number of authorized shares.
a) true
b) false
6. A journal entry is required for the authorization of capital stock.
a) true
b) false
7. Publicly held corporations usually issue stock directly to investors.
a) true
b) false
8. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
a) true
b) false
9. The market price of common stock is usually the same as its par value.
a) true
b) false
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
a) true
b) false
Answer: 1. True
2. False
3. False
4. True
5. False
6. False
7. False
8. True
9. False
10. False
Explanation:
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership is true.
2. This is false. LImited liability is not a disadvantage of a corporation. It is an advantage of a corporation.
3. Thus is false. When a corporation is formed, it should be noted that organization costs are expenses and not recorded as an asset.
4. This is true. Every share of common stock gives provides the stockholder the ownership rights to vote at stockholder meetings, and also share in corporate earnings, as well as keeping same percentage ownership when new shares of stock are issued, and will also share in the assets upon liquidation.
5. False. It should be noted that the number of authorized shares is typically more than greater or equal to the issued shares.
6. False. A journal entry is not required for the authorization of capital stock. It's required for the issuance of the capital stock.
7. Publicly held corporations do not issue stock directly to investors. Rather, this is done indirectly. It is the private corporations that issue their stock directly.
8. This is true. The trading of capital stock on a securities exchange has to do with the transfer of already issued shares from an existing stockholder to another investor.
9. False. The statement that "The market price of common stock is usually the same as its par value" is false. It should be noted that there's no relationship between the common stock market price and its par value.
10. This is false. The retained earnings simply meansis the total amount of the net income that is held by a corporation for use in the future.
Which era came immediately after World War II?
Answer:
The postwar era, 1945-1950.
Multiple-Step Income Statement
Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--.
Sales $156,876
Sales Returns and Allowances 2,344
Sales Discounts 4,155
Interest Revenue 419
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances 5,517
Purchases Discounts 2,710
Freight-In 870
Merchandise Inventory, December 31, 20-- 33,028
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense—Equipment 3,809
Miscellaneous Expense 584
Interest Expense 4,692
Answer:
Sauter Office Supplies
Multi-step Income Statement for the year ended December 31, 20--
Net sales $150,377
Cost of goods sold $99,478
Gross profit $50,899
Expenses:
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense 3,809
Miscellaneous Expense 584 $42,918
Operating income $7,981
Interest revenue 419
Interest Expense (4,692)
Income before taxes $3,708
Explanation:
a) Data and Calculations:
Sales $156,876
Sales Returns and Allowances 2,344
Sales Discounts 4,155
Interest Revenue 419
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances 5,517
Purchases Discounts 2,710
Freight-In 870
Merchandise Inventory, December 31, 20-- 33,028
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense—Equipment 3,809
Miscellaneous Expense 584
Interest Expense 4,692
Sales $156,876
Sales Returns and Allowances (2,344)
Sales Discounts (4,155)
Net sales $150,377
Cost of goods sold:
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances (5,517)
Purchases Discounts (2,710)
Freight-In 870
Merchandise Inventory, December 31, 20-- (33,028)
Cost of goods sold $99,478
present value of bonds payable; premium moss co. issued $740,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. determine the present value of the bonds payable, using the present value tables in exhibit 5 and exhibit 7. round to the nearest dollar. $fill in the blank 1
Answer:
ijiji
Explanation:
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A wine bar entrepreneur sells cases of her private-label wine for $335 per case.For an annual fee of $300, customers may also choose to enroll in a WineAppreciation Club, which o????ers private tastings and entitles members to buy casesof wine for $200. What is the minimum number of cases a club member need topurchase for the membership to be economically advantageous?
Answer: 3 cases
Explanation:
The entrepreneur charges $335 per case but members of the Wine Appreciation club can buy the cases for $200 if they pay an annual fee of $300.
The saving made by the members of the club is:
= 335 - 200
= $135 per case
Considering that they spend $300 on fees, the amount of cases that would give them a savings of more than this amount is:
= 300 / 135
= 2.22 cases
= 3 cases (rounded up)
At 3 cases they would make savings of:
= 3 * 135
= $405
This is more than the fee paid.
17. Which of the following is not a true statement
about monoplies?
a. Monopolies try to charge higher prices
than would result through competition.
b. By maximizing profits, monopolies
ultimately benefit social welfare.
c. Antitrust laws attempt to reduce
monopoly power.
d. Monopolies may try to influence the
political system in order to protect and
enhance their power.
Answer: B. is not a true statement. Most of the time monopolies do NOT benefit social welfare, they often put social welfare at a disadvantage.
Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.
Answer:
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
Explanation:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
The following information should be considered:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.Learn more: brainly.com/question/16911495
On January 8, Quastrar, Inc. sent Hylian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian: A. was not formed because the revocation was effective before the acceptance was sent. B. was not formed because the revocation was effective before the acceptance was received. C. was formed on January 18. D. was formed on January 20
Answer:
C. was formed on January 18
Explanation:
Since in the question it is mentioned that On Jan 8, Quastrar sent the letter for selling the restaurant supplies to Hylian company for $10,000. On Jan 17, Quastrar sent the revoking letter offer and the same would be received by Hylian on Jan 21. On Jan 18, Hylian mailed the letter regarding the acceptance to Quastrar and the same would be received by Quastrar on Jan 20.
So, the contract between them would be created on Jan 18 as the acceptance is sent on Jan 18 i.e. prior the revocation letter
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $287,000 after deducting Robert's $86,100 salary. In addition to his compensation, ABC pays Robert dividends of $200,900.
a. What is Robert's qualified business income?
b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050?
Answer:
A. $287,000
B. $192,050
Explanation:
a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.
b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050
Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:
=[$287,000 - ($181,050-$86,100)]
=$287,000-$94,950
=$192,050
Holtzman Clothiers's stock currently sells for $19.00 a share. It just paid a dividend of $4.00 a share (i.e., D0 = $4.00). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Answer and Explanation:
The computation is shown below:
a. The stock price expected one year from now is
= Stock sells per share × (1 + growth rate)
= $19 × (1 + 0.03)
= $19.57
= $20
b. The required rate of return is
= Dividend ÷ current price + growth rate
= ($4 × 1.03) ÷ $19 + 0.03
= 24.68%
The above formulas should be applied to determine each part
And, the same would be relevant
Suppose that Ava withdraws $300 from her savings account at Second Bank. The reserve requirement facing Second Bank is 10%. Assume the bank does not wish to hold any excess reserves of new deposits. Use this information to complete the balance sheet below to show how Second Bank's assets and liabilities change when Ava withdraws the $300 from the bank. Instructions:
Write your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
A Simple Bank Balance Sheet
Assets Liabilities
Change in Reserves: Change in Deposits:
Change in Loans:
Answer:
simple bank balance sheet
Explanation:
hope you get it
1. The petty cash fund of the Brooks Agency is established at $280. At the end of the current period, the fund contained $198 and had the following receipts: entertainment, $50; postage, $24; and printing, $8. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
Answer:
1a
Dr Petty cash $ 280
Cr Cash $ 280
1b
Dr Entertainment $ 50
Dr Postage $ 24
Dr Printing $ 8
Cr Cash $ 82
Explanation:
A. Preparation of the journal entries to record establishment of the fund
Dr Petty cash $ 280
Cr Cash $ 280
( To record petty cash fund created)
1b. Preparation of the journal entries to record
reimbursement of the fund at the end of the current period.
Dr Entertainment $ 50
Dr Postage $ 24
Dr Printing $ 8
Cr Cash $ 82
(50+24+8)
(To Record reimbursement of the fund)
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 11% as long as it finances at its target capital structure, which calls for 45% debt and 55% common equity. Its last dividend (D0) was $1.85, its expected constant growth rate is 3%, and its common stock sells for $22. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 13%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. % Which projects should Empire accept? -Select-
Answer:
11.66
7.6475
project A
Explanation:
ABC Motors ordinarily deals in used cars and does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss, and his only recourse was against Connie. Which of the following is true regarding the manager's statement that Robby's only recourse is against Connie?
a. The manager is correct.
b. The manager is correct only if Connie's deal was for less than 10% of the fair market value of the car.
c. The manager is incorrect only if Robby has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
d. Because the sale to Connie was an accident, the manager is correct only if Connie can be found and served with process.
e. The manager is incorrect.
Answer: e. The manager is incorrect.
Explanation:
Based on the information given in the question, the statement that's true regarding the manager's statement that Robby's only recourse is against Connie is that the manager is incorrect.
It should be noted that Connie wasn't aware that the car didn't belong to ABC motors thereby Robby's only recourse is not against Connie. The manager should be able to protect the vehicles brought to the company. In this case, the company is liable and Robby can take up a case against them.
Therefore, the correct option is E