Answer:
$205 per unit
Explanation:
Calculation to determine what The absorption costing unit product cost was:
Using this formula
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)
Let plug in the formula
Absorption costing unit product cost= $108 + $51 + $7 + ($417,300 / 10,700)
Absorption costing unit product cost=$108 + $51 + $7 + $39
Absorption costing unit product cost= $205 per unit
Therefore The absorption costing unit product cost was:$205 per unit
Sunland purchased the license for distribution of a popular consumer product on January 1, 2020, for $158,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Sunland can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2020
Answer:
No amount should be amortized since the license can be renewed indefinitely for successive 5-year terms.
Instead, the license should be tested for impairment annually to determine impairment loss.
Explanation:
An intangible asset that can be used indefinitely is treated like purchased Goodwill. It should never be amortized. Annually, the asset should be tested for impairment. The test is to compare the market value of the license with the book value.
Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities:
Activity Activity Cost
Machine setup $75.00 per batch
Movement 22.00 per batch
0.10 per pound
Drilling 3.00 per hole
Welding 6.00 per inch
Shaping 32.00 per hour
Assembly 18.00 per hour
Inspection 2.00 per unit
Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:
Three batch moves .
Two sets of inspections .
Drilling five holes in each unit
Completing 80 inches of welds on each unit .
Thirty minutes of shaping for each unit .
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts
Fireplace Inserts
Activity Cost
Set-up $
Movement
Batch 60V
Weight
Inspection
Drilling
Welding
Shaping
Assembly
Total
Answer:
$27,541
Explanation:
Calculation to Determine the activity cost
Activity Cost
Set-up $75.00
Movement:
Batch 60V $66
(Three batch moves *22.00 per batch)
Weight $750
(150 pounds*0.10 per pound*50)
Inspection $200
(Two sets of inspections*50*2.00 per unit)
Drilling $750
(3.00 per hole*five holes in each unit*50)
Welding $24,000
(6.00 per inch*80*50)
Shaping $800
(32.00 per hour*(30 minutes/60)*50)
Assembly $900
(18.00 per hour*1*50)
Total $27,541
Therefore the activity cost is $27,541
Testbank Multiple Choice Question 110 On January 1, 2021, Marigold Corp. redeemed its 15-year bonds of $6920000 par value for 101. They were originally issued on January 1, 2009 at 91 with a maturity date of January 1, 2024. Marigold amortizes discounts and premiums using the straight-line method. What amount of loss should Marigold recognize on the redemption of these bonds (ignore taxes)
Answer:
$193,760
Explanation:
Calculation to determine the amount of loss should Marigold recognize on the redemption of these bonds
Bonds edemption=[($6,920,000*1.01)-$6,920,000]+[(100%-91%*$6,920,000)-((100%-91%*$6,920,000)/15 years*12)]
Bonds redemption=[($6,989,200-$6,920,000]+[(9%*$6,920,000)-((9%*$6,920,000)/15 years*12)]
Bonds redemption=$69,200+[($622,800-($622,800/15 years*12)]
Bonds redemption=$69,200+[($622,800-$498,240)]
Bonds redemption=$69,200+$124,560
Bonds redemption=$193,760
Therefore the amount of loss should Marigold recognize on the redemption of these bonds is $193,760
Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, she incorporates her business as Dove Corporation and transfers the assets of the business to the corporation in return for all of the stock in addition to the corporation’s assumption of her proprietorship’s liabilities. All of the receivables and the unpaid trade payables are transferred to the newly formed corporation. The balance sheet of the corporation immediately after its formation is as follows:
Dove Corporation
Balance Sheet
February 1, 2013
Assets
Basis to Dove Fair Market Value
Cash $ 80,000 $ 80,000
Accounts receivable 0 240,000
Equipment (cost $180,000; 120,000 320,000
depreciation previously claimed $60,000)
Building (straight-line depreciation) 160,000 400,000
Land 40,000 160,000
Total $400,000 $1,200,000
Liabilities and Stockholder’s Equity
Liabilities:
Accounts payable—trade $ 120,000
Notes payable—bank 360,000
Stockholder’s equity:
Common stock 720,000
Total $1,200,000
Discuss the tax consequences of the incorporation of the business to Cynthia and to Dove Corporation.
Answer:
Cynthia and Dove CorporationAny profits generated by Dove Corporation will be taxed to the corporation and also taxed to Cynthia as a shareholder whenever Dove distributes the profits as dividends. Taxing Dove and Cynthia creates a double taxation burden for both Dove and Cynthia. Dove Corporation does not get a tax deduction when it distributes dividends to Cynthia. Furthermore, Cynthia cannot deduct any corporation loss when incurred. These are unlike when the business was only a sole proprietorship.
Explanation:
a) Data and Calculations:
Dove Corporation
Balance Sheet
February 1, 2013
Assets
Basis to Dove Fair Market Value
Cash $ 80,000 $ 80,000
Accounts receivable 0 240,000
Equipment (cost $180,000; 120,000 320,000
depreciation previously claimed $60,000)
Building (straight-line depreciation) 160,000 400,000
Land 40,000 160,000
Total $400,000 $1,200,000
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable—trade $ 120,000
Notes payable—bank 360,000
Stockholders' equity:
Common stock 720,000
Total $1,200,000
Prescott gave land to his aunt, Janice. Prescott's basis in the land was $45,000, and its fair market value at the date of the gift was $62,000. Janice borrowed $40,000 from a bank; she used the funds to improve the property. She sold the property to Marshall for $220,000. Marshall paid Janice $80,000 in cash, assumed her $30,000 mortgage, and agreed to pay $110,000 in two years. Janice's selling expenses were $2,000. Marshall is going to pay adequate interest.
a. Janice's basis in the land at the time of the sale is __________.
b. When computing her realized gain, what amount does Janice use as the selling price and as the contract price?
Contract price:__________.
c. Janice's total realized gain on the sale is $fill in the blank 4, but her recognized gain in the year of the sale is ________.
Answer:
A. 220k
B. 45k
C. 2k
Explanation:
Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5.00 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3.00 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. Square Yard Products Inc.'s total operating income will increase by
Answer: $80,000
Explanation:
First, we'll need to calculate division 3's income from the increase in operations and this will be:
= (40000 × $5) - ($40000 × $3.20)
= $200,000 - $128,000
= $72000
Division 6 income from operation increase will be:
= 40000 × ($3.20 - $3.00)
= 40000 × 0.2
= $8000
Therefore, Square Yard Products Inc.'s total operating income will increase by:
= $72000 + $8000
= $80000
Bob lives in Philadelphia and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as an accountant, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $3,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars
Implicit Cost Explicit Cost
1. The wholesale cost for the guitars that Charles pays the manufacturer
2. The wages and utility bills that Charles pays
3. The salary Charles could earn if he worked as an accountant
4. The rental income Charles could receive if he chose to rent out his showroom
Complete the following table by determining Charles's accounting and economic profit of his guitar business.
Profit (Dollars)
Accounting Profit
Economic Profit
Answer:
Explicit Cost
1. The wholesale cost for the guitars that Charles pays the manufacturer
2. The wages and utility bills that Charles pays
Implicit cost
3. The salary Charles could earn if he worked as an accountant
4. The rental income Charles could receive if he chose to rent out his showroom
$14,000
Economic profit = $-9000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Accounting profit = $704,000 - ( $404,000 + $286,000) = $14,000
Economic profit = $14,000 - ($3000 + $20,000) =$-9000
Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May 1, an additional 9,000 shares of common stock were issued. On July 1, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock. Soliman Corporation’s 2018 net income is $230,000.
Required
a. Compute earnings per share for 2018. Round your answer to two decimal places.
b. Compute diluted earnings per share for 2018. Round your answer to two decimal places.
Answer:
Soliman Corporation
1. Basic EPS
= $6.18 per share
2. Diluted EPS
= $5.23 per share
Explanation:
a) Data and Calculations:
Convertible Preferred Stock = 5,000 or 10,000 Common Shares
Common Stock:
January 1, 2018 = 25,000
May 1, 2018 Issued 9,000
July 1, 2018 Treasury (6,000)
September 1, 2018 Treasury 6,000
Total outstanding 34,000
Converted preferred stock 10,000
Total outstanding 44,000
2018 Net Income = $230,000
Preferred dividend 20,000 ($4 * 5,000)
Income for Common $210,000
Basic Earnings per share = $210,000/34,000 = $6.18
Diluted Earnings per share = $230,000/44,000 = $5.23
In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production. In the department's cost reconciliation report for August, the cost of units transferred out of the department would be: Multiple Choice $294,000 $270,000 $281,000 $307,000
Answer:
$294,000
Explanation:
The computation of the cost of units transferred out of the department would be shown below:
= Opening work in process + cost added to the production - ending work in process
= $24,000 + $283,000 - $13,000
= $294,000
Windsor, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.
1. On April 1, it established a petty cash fund in the amount of $268.
2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows. Delivery charges paid on merchandise purchased $76 Supplies purchased and used 41 Postage expense 49 I.O.U. from employees 33 Miscellaneous expense 52 The petty cash fund was replenished on April 10. The balance in the fund was $8.
3. The petty cash fund balance was increased $116 to $384 on April 20.
Prepare the journal entries to record transactions related to petty cash for the month of April.
april 1
pety cash 342 (d)
cash 342 (c)
april 10
???????????????????? 72 (d)
miscellaneous expense 48 (d)
postage expense 52 (d)
accounts recievable 29 (d)
???????????????????
??????????????????
??????????????????
petty cash ??
cash ??
Answer:
April 1
Dr Petty cash $268
Cr Cash $268
April 10
Dr Freight-in (Or Inventory) $76
Dr Supplies expense $41
Dr Dr Postage expense $49
Dr Accounts Receivable/Loan to employees $33
Dr Miscellaneous expense $52
Cr Cash over and short $9
Cr Cash $260
April 20
Dr Petty cash $116
Cr Cash $116
Explanation:
Preparation of the journal entries to record transactions related to petty cash for the month of April.
April 1
Dr Petty cash $268
Cr Cash $268
April 10
Dr Freight-in (Or Inventory) $76
Dr Supplies expense $41
Dr Dr Postage expense $49
Dr Accounts Receivable/Loan to employees $33
Dr Miscellaneous expense $52
Cr Cash over and short $9
($260-$76-$41-$49-$33-$52)
Cr Cash $260
($268-$8)
April 20
Dr Petty cash $116
Cr Cash $116
Assume that the entry closing total revenues of $284,900 and total expenses of $212,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $330,000 and Teresa Schafer, Drawing has a balance of $27,600.
A. Journalize the entry required to close the Teresa Schafer, Drawing account.
B. Determine the amount of Teresa Schafer, Capital at the end of period.
Answer and Explanation:
a. The journal entry to record the closing of drawing account is given below:
Teresa Schafer, Capital $27,600
Teresa Schafer, Drawing $27,600
(Being closing of drawing account is recorded)
b. The ending capital is
= Credit balance of capital - drawings
= $330,000 - $27,600
= $302,400
The purpose of charging different prices to different groups of customers is to multiple choice decrease costs and in turn increase profits. Student discounts are an example of this type of pricing. increase revenue, but not profits. Higher holiday airfares are an example of this type of pricing. increase revenue and in turn costs. Senior citizen discounts are an example of this type of pricing. increase revenue and in turn profits. Lower afternoon movie prices are an example of this type of pricing.
Answer:
increase revenue and in turn profits. Lower afternoon movie prices are an example of this type of pricing.
Explanation:
Price discrimination is defined as the situation where the same product is being sold to different customers at different prices.
This is mostly based in the ability of the customers to pay at the varying amounts.
In the given instance when afternoon movie tickets are sold at lower prices, that rational is that there is lower demand for movies in the afternoon.
As such the price will need to be lowered to encourage people to buy tickets.
However at night people are less busy and demand for movies will be high. Tickets can now be sold at higher prices with the assurance that people will buy
Student discounts are an example of this type of pricing of increase revenue and in turn profits. Lower afternoon movie prices are an example of this type of pricing.
The following information should be considered;
Price discrimination is defined as the situation where the same product is being sold to different customers at different prices. This is mostly based in the ability of the customers to pay at the varying amounts.Learn more: brainly.com/question/16911495
On January 1, 2019, Tonika Company issued a four-year, $10,700, 7% bond. The interest is payable annually each December 31. The issue price was $10,018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense?
A. Interest expense 1,052
Bond discount 205
Cash 847
B. Interest expense 847
Cash 847
C. Interest expense 805
Bond discount 42
Cash 847
Answer:
C. Interest Expense 805
Bond discount 42
Cash 847
Explanation:
The interest expense is calculated based on effective interest rate. The issue price is 10,018 which is the actual price and with effective interest rate interest amount is determined. The interest expense has cash value and bond discount.
10,018 * 8% = 804.45 approximately 805.
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020:
2021 2020
Sales $ 314,000 $ 290,000
Sales returns and allowances 8,000 4,700
Net sales $ 306,000 $ 285,300
Cost of goods sold:
Inventory, January 1 62,000 18,000
Net purchases 139,000 142,000
Goods available for sale 201,000 160,000
Inventory, December 31 61,000 62,000
Cost of goods sold 140,000 98,000
Gross profit $ 166,000 $ 187,300
The average days inventory for ATC (rounded) for 2021 is: (Round your intermediate calculations to two decimal places. Round your final answer to the nearest whole number.)
A. 171 days.
B. 222 days.
C. 231 days
D. Less than 100 days.
Answer:
D. Less than 100 days
Explanation:
Average days inventory = 365 / Inventory turnover rate
But
Inventory turnover rate = Cost of goods sold / Average inventory
Also,
Average inventory = (Beginning inventory + Ending inventory) / 2
= ($62,000 + $18,000) / 2
= $40,000
Inventory turnover rate = $201,000 / $40,000 = 5.025
Average days inventory = 365 / 5.025 = 72.64 days
Cream 424,000 at $130 per gallon Liquid skim 344,500 at $115 per gallon The cost of purchasing 820,000 gallons of direct materials and processing it up to the split-off point to yield a total of 797,500 gallons of good product was $2,350,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim
Question Completion:
Production:
Cream = 443,000 gallons
Liquid skim = 354,500 gallons
Total production = 797,500 gallons
Answer:
The approximate amount of joint costs that will be allocated to cream and liquid skim =
Cream = $1,305,392
Liquid skim = $1,044,608
Explanation:
a) Data and Calculations:
Direct materials purchased = 820,000 gallons
Total yield at split-off = 797,500
Joint costs = $2,350,000
Cream Liquid Skim
Sales units at split-off 424,000 344,500 gallons
Selling price per unit $130 $115
Production Cream 443,000 354,500 gallons
Allocation of joint costs, using a physical volume measure:
Cream = $2,350,000 * 443,000/797,500 = $1,305,392
Liquid Skim = $2,350,000 * 354,500/797,500 = $1,044,608
Carmelo, the editor of a business department of a national news magazine, went through a sequence of jobs in the company before he achieved this position. He joined as a staff reporter, then got promoted to technology reporter, then to editor of the business department, and then to deputy managing editor before achieving his current position. This is __________.
Answer:
organization-centered career planning
Explanation:
According to the information in the question, it is correct to say that the case of Carmelo fits into a organization-centered career planning, because Carmelo grew in the organization in a progressive sequence, joined as a team reporter and was climbing new roles until reaching a higher hierarchical position as your current position as editor of the magazine's business department.
Organization-centered career planning can be very beneficial to employees when the organization is well structured through a culture that enables the growth of employees and professional advancement in the company.
Match the following empires:
1. Established relatively peaceful trading relationship with Native Peoples and never established large permanent population throughout the colony.
2. After attempting several times to find a Northwest Passage to the Pacific, they established a comparably small presence in North America. However, through their alliance with the Huron and other Native peoples, they were able to maintain a vast claim stretching between the St. Lawrence River, the Ohio River, and the Mississippi River to Louisiana.
3. Originally in search of timber and gold, established a presence in North America for the purpose of colonizing. In order to do this, they depended on the depopulation of Native Peoples throughout the colonies.
4. Given a special decree from the Pope which granted them the ability to conquer all of the lands in the Western Hemisphere in which no Christians resided. After conquering the Aztecs and the Incas, they established new colonial centers as extensions of the empire.
A. Spanish.
B. English.
C. Dutch.
D. French.
Answer:
1 ----> Matches with ----->C
2 ----> Matches with ----->D
3 ----> Matches with ----->B
4 ----> Matches with ----->A
Explanation:
This question is very easy and interesting. In this question, we just need to match the specific empires with the description given in the question. So, Let's Start.
1. The first description matches with the Dutch Empire. (C)
2. The second description matches with obviously the French Empire (D)
3. The third description matches with the English Empire. (B)
Lastly,
4. The forth description clearly matches with the Spanish Empire. (A)
So, Correct Combination will be:
1 ----> Matches with ----->C
2 ----> Matches with ----->D
3 ----> Matches with ----->B
4 ----> Matches with ----->A
An investment project has annual cash inflows of $4,300, $4,000, $5,200, and $4,400, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
1.64 years
2.27 years
3.13 years
Explanation:
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31
Amount recovered in year 1 = -5800 + 3805.31 = -1994.69
Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59
Amount recovered in year 2 =-1994.69 + 3132.59 = 1137.90
Payback period = 1 + 1994.69/3132.59 = 1.64 years
B
Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31
Amount recovered in year 1 = -7900 + 3805.31 = -4094.69
Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59
Amount recovered in year 2 = -4094.69 + 3132.59 = -962.10
Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86
Amount recovered in year 3 = -962.10 + 3603.86 = 2641.76
Payback period = 2 years + -962.10 / 3603.86 = 2.27 years
C
Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31
Amount recovered in year 1 = -10900 + 3805.31 = -7094.69
Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59
Amount recovered in year 2 = -7094.69 + 3132.59 = -3962.10
Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86
Amount recovered in year 3 = -3962.10 + 3603.86 = -358.24
Present value in year 4 = 4400 / (1.13^4) = 2698.60
Amount recovered in year 4 = -358.24 + 2698.60 = 2340.36
Payback period = 3 years + 358.24 + 2698.60 = 3.13 years
A firm will maximize the present value of future profits by maximizing current profits when: the growth rate in profits is constant. the growth rate in profits is larger than the interest rate. Correct! the interest rate is larger than the growth rate in profits and both are constant. the growth rate and interest rate are constant and equal.
Answer:
the interest rate is larger than the growth rate in profits and both are constant.
Explanation:
In the case when the firm wants to maximize the present value of the profits that arise in near future so here the current profits would be maximize at the time when the rate of interest would be more than the growth rate and both would remain constant
Hence, the option c is correct
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of stealing company supplies. Before clicking "Send," Dmitri reread his message. He decided to delete the message instead of sending it, fearing that his work team members might consider his e-mail to be inappropriate. Which ethical consideration did Dmitri use in his decision to behave in a principled manner?
A) Publicity Test
B) Common Good approach
C) Professional Ethic
D) Utilitarian approach
Answer:
C. Professional Ethics.
Explanation:
Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.
Fiscal expansion Group of answer choices decreases aggregate demand and causes output to decline. decreases aggregate demand and causes output to rise. decreases government expenditures. stimulates aggregate demand and causes output to rise. stimulates aggregate demand and causes output to decline.
Answer:
Fiscal expansion
stimulates aggregate demand and causes output to rise.
Explanation:
The Federal Government employs a fiscal expansion policy when it wants to boost economic growth. Such a policy is always needed during the contractionary phase of the business cycle. The purposes of a fiscal expansion policy by the government are to reduce unemployment, engender consumer demand and growth, and avoid an economic downturn.
eating small amounts of sweet desserts can satisfy one's urge or craving for healthier food. true or false?
Answer:
I think eating healthier food would be better. Eating sweet desserts would be healthier than eating a lot, but you should still cut down and eat healthier foods. False
Explanation:
Eva received $68,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $13,500 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.
a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?
c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year?
I got answer b but you may wanna double check
Answer:
its b
Explanation:
i got it right on mine
Elizabeth reports the following items for the current year: Nonbusiness capital gains $ 5,000 Nonbusiness capital losses (3,000) Interest income 3,000 Itemized deductions (including a $20,000 casualty loss in a Federal disaster area) (27,000) In calculating Elizabeth's net operating loss and with respect to these amounts only, what amount must be added back to taxable income (loss)
Answer: $2000
Explanation:
In calculating Elizabeth's net operating loss and with respect to these amounts only, the amount that must be added back to taxable income (loss) will be the difference between the nonbusiness capital gains and the nonbusiness capital losses. This will be:
= $5000 - $3000
= $2000
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for $8,000 to Hyatt Company for merchandise. Dec. 1 Towell signed a 120-day, 10% note at the bank for $12,000. Dec. 20 Towell gave Barr, Inc., a 60-day, 10%, $12,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.
Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
A truck was acquired on July 1, 2018, at a cost of $311,850. The truck had a six-year useful life and an estimated salvage value of $34,650. The straight-line method of depreciation was used. On January 1, 2021, the truck was overhauled at a cost of $28,875, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $34,650). In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned.
Answer:
Details Amount($)
Cost $311,850
Less: Salvage value ($34,650)
Depreciation base July 1, 2018 $277,200
Less: Depreciation to date ($277,200/6)*2.5 ($115,500)
Depreciation base Jan 1, 2021 (unadjusted) $161,700
Overhaul $28,875
Depreciation base Jan 1, 2021 (adjusted) $190,575
Date Particulars Debit($) Credit($)
2021, Jan 1 Depreciation accumulated A/c Dr $34,650
To cash A/c $34,650
2021, Dec 31 Expense for depreciation A/c Dr $19,922
($109,575/5.5)
To Depreciation accumulated A/c $19,922
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Merchandise (Invoice Amount) Freight Paid by Seller Freight Terms Returns and Allowances (Invoice Amount) a. $5,300 $400 FOB destination, 2/10, n/30 $1,250 b. 2,700 200 FOB shipping point, 1/10, n/30 800 a. $fill in the blank 1 b. $fill in the blank 2
Answer:
a. Amount to be paid = $4,369
b. Amount to be paid = $1,881
Explanation:
Note: Thee data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
a. Invoice (a)
Amount to be paid = (Invoice amount - Returns and Allowances) - ((Invoice amount - Returns and Allowances) * 2%) + Freight Paid by Seller = ($5,300 - $1,250) - (($5,300 - $1,250) * 2%) + $400 = $4,369
b. Invoice (b)
Amount to be paid = (Invoice amount - Returns and Allowances) - ((Invoice amount - Returns and Allowances) * 1%) = ($2,700 - $800) - (($2,700 - $800) * 1%) = $1,881
You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most preferred value that you are willing to spend. These values are: Mabel, $10,000; Gertrude, $20,000; Myron, $30,000; Wilber, $40,000; and you, $50,000. The condo costs $150,000. Explain how to implement a uniform rule mechanism to allocate costs and shares.
Answer:
Individual Cost Shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
Explanation:
peaked preferences
Most preferred value to spend :
Mabel = $10,000
Gertrude = $20,000
Myron = $30,000
Wilber = $40,000
you = $50,000
cost of Condo = $150,000
Implementing a Uniform rule mechanism to allocate costs and shares
The uniform rule ; ∑ j∈I Uj (p) = Ω.
where Ω = fixed amount of resource
hence the summation of all allotment should = Ω ( $150,000 )
Number of friends = 5
cost of condo = $150,000
If divide equally each person will have to pay ; $150,000 / 5 = $30,000
Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000 = $150,000
Individual Cost shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67∑%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
∑shares ≈ 100% ( 150,000 )
X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise on credit. The original cost of the merchandise to X-Mart was $500. Demonstrate the required journal entry to record the cost of the sale by selecting all of the correct actions below.
a. Debit Merchandise Inventory $500.
b. Credit Cost of Goods Sold $500.
c. Credit Merchandise Inventory $500.
d. Debit Cost of Goods Sold $500.
Answer:
d. Debit Cost of Goods Sold $500.
c. Credit Merchandise Inventory $500.
Explanation:
The journal entry to record the cost of the sale is shown below:
Cost of Goods Sold $500
To Merchandise inventory $500
(To record the cost of the sale)
Here the cost of goods sold is debited as it increased the expenses and credited the merchandise inventory as it reduced the assets
The correct options for the journal entry are under the perpetual inventory system are:
Debit Cost of Goods Sold $500.Credit Merchandise Inventory $500.What is the perpetual inventory system?A perpetual inventory system is a system of recording inventory transactions on a real-time basis. The book inventory, therefore, shows the real stock.
The perpetual inventory system debits COGS upon each sale transaction and credits the inventories.
Therefore the correct options are c and d.
Learn more about the perpetual inventory systems here:
brainly.com/question/4465737
The sensitivity of a system for disciplining and possibly terminating employees is important, and it is critical that the system be seen as fair. Employees form conclusions about the system's fairness based on the system's outcomes and procedures and the way managers treat employees when carrying out those procedures. Three principles of justice are outcome fairness, procedural justice, and interactional justice.
Outcome fairness involves the ends of a discipline process or action, while procedural and interactional justice focus on the means to those ends. Not only is behavior ethical that is in accord with these principles, but research has also linked the last two categories of justice with employee satisfaction and productivity
Place each of the following labels in one of the columns.
Listen closely
College buddies
Project work
Family friendly
Explanations
Family relations
Accommodations
Gender benefits
Team raises
Promotion
Respect
Qualifications
Outcome fairness Procedural justice International justice
Answer:
You and a friend apply for a job and you believe that you are more qualified - Outcome Fairness
You find out that your friend's uncle is hiring a manager for the company- Procedural justice
Explanation:
Outcome Fairness is the situation where we perceive that the results for a certain situation will be based on fair judgement.
Procedural Justice is a situation where a man believes that there will be pure justice in resource allocation and decision making will be based on judgement.
