John is considering purchasing a commercial building. His accountant is working with him to determine the property’s value to John. The initial cost of an investment property plus the cost of any additional improvements less qualified deductions represents the:

Answers

Answer 1

Answer:

Adjusted basis

Explanation:

Adjusted basis in accounting is used to calculate the net value of an asset. This is done by reducing depreciation deductions from the original value and adding capital expenses like cost of improvement.

This method is best used when there is need to get accurate gain and loss records, and for tax purposes.

In the given scenario John's accountant is using the adjusted basis when he calculates initial cost of an investment property plus the cost of any additional improvements less qualified deductions


Related Questions

A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000.__________ Fill in the blank, read surrounding text. % is the percentage change in the price of this bond if the yield to maturity rises to 6% from the current yield to maturity of 4.5%

Answers

Answer:

12.38% decrease

Explanation:

Given the following parameters

6%

Number of years = 12

Market yield I= 6 === 4.5

Present Value = 916.16 == 1045.59

PMT (annuity payment) = 50 (5%x1000)

Future value = 1000

Therefore, to solve for the percentage change, we have in the price of this bond in this situation, we have (916.16-1045.59) / 1045.59 = -0.1238

Hence, 12.38% decrease is the percentage change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%,

The percentage change in the price of this bond will be -12.38%.

The price of the bond at 4.5% is calculated thus:

Yield to maturity = 4.50%Years left to maturity = 12Annual coupon rate = 5%Face value = $1000.Annual coupon payment = $50Price of the bond at 4.5% = $1045.59

The price of the bond at 6.0% is calculated thus:

Yield to maturity = 6.00%Years left to maturity = 12Annual coupon rate = 5%Face value = $1000.Annual coupon payment = $50Price of the bond at 6.0% = $916.16

The percentage change in price will be:

= (916.16 - 1045.59) / 1045.59

= -12.38%

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Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Customer Served Revenue $5,500 Employee salaries and wages $46,300 $1,000 Travel expenses $ 500 Other expenses $32,500 When the company prepared its planning budget at the beginning of May, it assumed that 20 customers would have been served. However, 17 customers were actually served during May. The activity variance for "Travel expenses" for May would have been closest to:

Answers

Answer:

Pattison Corporation

Activity Variance for "Travel expenses" for May would have been closest to:

$1,500 Favorable

Explanation:

Data and Calculations:

                           Fixed Element         Variable Element per  

                              per Month              Customer Served

Revenue                                                        $5,500

Employee salaries

 and wages            $46,300                         $1,000

Travel expenses                                             $ 500

Other expenses    $32,500

The Travel Expenses Activity Variance = Actual cost minus budgeted cost

= $8,500 - $10,000

= $1,500 Favorable

Actual travel expenses = ($500 x 17)

= $8,500

Budgeted travel expenses =  ($500 x 20)

= $10,000

Pattison Corporation's activity variance for Travel Expenses for the month of May is the difference between the actual travel expenses and the budgeted travel expenses.  The budgeted expenses are based on budgeted number of customers served in May while the actual expenses are based on actual number of customers served in May.

Consider a basket of consumer goods that costs $90 in the United States. The same basket of goods costs CNY 105 in China.
Holding constant the cost of the basket in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table.
Cost of Basket in U.S (Dollars) Cost of Basket in China (Yuan) Nominal Exchange Rate (Yuan per dollar) Real Exchange Rate (Baskets of Chinese goods per basket of U.S goods)
90 105 7.00
90 105 10.50

Answers

Answer:

The real exchange rates that would result from the two nominal exchange rates are:

For the first row in the table RER is 6.

For the second row in the table RER is 9.

Note: See the attached excel file for the table.

Explanation:

Note: The table in the question is merged together. It is therefore sorted before answering the question. See the attached excel file for the sorted table.

The answer to the explanation to the answer is now provided as follows:

The real exchange rate (RER) between the the currencies of two counties can be described as the multiplication of the nominal exchange and the ratio of baskets of goods between these two countries.

RER can can therefore be calculated using the following formula:

RER = (e * P*) / P ................................. (1)

Where, from the question;

e = Nominal exchange rate or Yuan per dollar

P* = Cost of Basket in U.S (Dollars)  

P = Cost of Basket in China (Yuan)

For the first row in the table:

e = Nominal exchange rate or Yuan per dollar = 7

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Substituting the values into equation (1), we have:

RER = (7 * 90) / 105

RER = 630 / 105

RER = 6

For the second row in the table:

e = Nominal exchange rate or Yuan per dollar = 10.50

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Substituting the values into equation (1), we have:

RER = (10.50 * 90) / 105

RER = 945 / 105

RER = 9

The real exchange rates that should lead from the two nominal exchange rates should be 6 and 9.

Calculation of the real exchange rate:

RER = (e * P*) / P ................................. (1)

Here,

e = Nominal exchange rate or Yuan per dollar

P* = Cost of Basket in U.S (Dollars)  

P = Cost of Basket in China (Yuan)

So,

e = Nominal exchange rate or Yuan per dollar = 7

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Now

RER = (7 * 90) / 105

RER = 630 / 105

RER = 6

Now

e = Nominal exchange rate or Yuan per dollar = 10.50

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

So,

RER = (10.50 * 90) / 105

RER = 945 / 105

RER = 9

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IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000. IP Company has a beginning loan balance of $12,000.
The ending loan balance is:________.

Answers

Answer: $7,000

Explanation:

From the question, we are informed that IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000 and that IP Company has a beginning loan balance of $12,000.

The ending loan balance will be:

= $20,000 + $12,000 - $25,000

= $32,000 - $25,000

= $7,000

Time Again LLC produces and sells a mantel clock for $150.00 per unit. In​ 2017, 43,000 clocks were produced and 36,000 were sold. Other information for the year​ includes: Direct materials $43.00 per unit Direct manufacturing labor $8.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $15.00 per part Fixed manufacturing costs $63.00 per unit Administrative​ expenses, all fixed $38.50 per unit What is the inventoriable cost per unit using absorption​ costing?

Answers

Answer:

Unitary cost= $118

Explanation:

Giving the following information:

Production= 43,000

Direct materials $43.00 per unit

Direct manufacturing labor $8.00 per unit

Variable manufacturing costs $4.00 per unit

Fixed manufacturing costs $63.00 per unit

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary cost= 43 + 8 + 4 + 63

Unitary cost= $118

If a company has the following data, is the budget variance favorable or unfavorable? Budgeted Sales $10,000 Actual Sales. $8,000

Answers

Answer:

$2,000 unfavorable

Explanation:

The computation of the budget variance is shown below:

Budget variance is

= Budgeted sales - actual sales

where,

Budgeted sales is $10,000

And the actual sales is $8,000

Now placing these values to the above formula

So, the budget variance is

= $10,000 - $8,000

= $2,000 unfavorable

Since the actual sales is less than the budgeted sales so the same is to be unfavorable else it is favorable

What was the ratio of per capita income in each of the following countries to that in the United States in the year 2010:

a. Ethiopia
b. Mexico
c. India
d. Japan

Answers

Answer:

For   Countries (per capita)          United States of America (per capita)

Ethiopia:        

$380                                               $48,468

Mexico:                                          

$9,271                                             $48,468

India:

$1,358                                             $48,468

Japan:

$44,508                                          $48,468

Explanation:

Ratio per Capita also known as Gross Domestic Product per Capita (GDP Capita) is the monetary measure of the market value of all the final goods and services produced in a specific time period within the country in view. It is useful for comparing national economies of different countries on the international market.

True or false: At 2019 year-end, a government has $25,000 of outstanding encumbrances. The 2019 Budgetary Comparison Scheduled will include the $25,000 whether or not the encumbrances lapse at year-end.

Answers

Answer:

True.

Explanation:

The 2019 Budgetary Comparison Schedule will include the $25,000 whether or not the encumbrances lapse at the year-end, either as outstanding encumbrances or settled encumbrances.  These $25,000 encumbrances are budget reservations of appropriations so that they can be used to settle specified expenditures in the future.  The purpose of making these reservations is to signal that the expenditures have been earmarked so that their cash allocations are not used for other purposes.

Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per unit. Additional information is as follows:

Variable product cost per unit $19
Variable administrative cost per unit 11
Total fixed overhead 13,500
Total fixed administrative 21,000

Using the variable cost method, what markup percentage to variable cost should be used?

Answers

Answer:

81%

Explanation:

Calculation for the markup percentage to variable cost that should be used

Using this formula

Markup percentage=[(Target profit + Fixed overhead costs + Fixed administrative costs) / Total variable costs

Let plug in the formula

Markup percentage=[($22*15,000 units)+$13,500+$21,000]/$30×15,000)

Markup percentage=($330,000+$13,500+$21,000)/$450,000

Markup percentage=$364,500/$450,000

Markup percentage=0.81*100

Markup percentage=81%

Calculation for Total variable costs

Variable product cost per unit $19

Variable administrative cost per unit $11

Total variable costs =$30

Therefore the markup percentage to variable cost that should be used will be 81%

Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin ratio

Answers

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

Location Score

Factor
(100 points each) Weight A B C
Convenience .15 89 78 84
Parking facilities .20 75 93 98
Display area .18 92 90 87
Shopper traffic .27 92 93 82
Operating costs .10 93 97 84
Neighborhood .10 90 96 95
1.00


a.
Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)



Location Composite Score
A
B
C


b.
Determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.

B
C
A

Answers

Answer and Explanation:

The computation of composite score for each location is shown below:-

Composite score for A is

= 0.15 × 89 + .20 × 75 + 0.18 × 92 + 0.27 × 92 + 0.10 × 93 + 0.10 × 90

= 88.05

 Composite score for B is

= 0.15 × 78 + .20 × 93 + 0.18 × 90 + 0.27 × 93 + 0.10 × 97 + 0.10 × 96

= 90.91

Composite score for C is

= 0.15 × 84 + .20 × 98 + 0.18 × 87 + 0.27 × 82 + 0.10 × 84 + 0.10 × 95

= 87.90

Therefore for computing the composite score for each location we simply multiply weight with A location and in the same manner of A, B and C

b. The maximum composite score from A, B and C is B

You are an investor who wants to form a portfolio that lies to the right of the "optimal" minimum standard deviation portfolio on the efficient frontier. You must: 0 / 1 puntos Invest only in risky securities. Borrow money at the risk-free rate, invest in the minimum standard deviation portfolio and, in addition, only in risky securities. Borrow money at the risk-free rate and invest everything in the minimum standard deviation portfolio. Invest only in risk-free securities.

Answers

Answer:

Correct Answer:

invest in the minimum standard deviation portfolio and, in addition, only in risky securities.

Explanation:

For an investor aiming to invest in a portfolio so that, his minimum standard deviation would lie towards the optimal right, he or she would need to invest in extremely risky securities. And, also, there will be need to maintain minimum standard deviation portfolio.

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment $11,600
Insurance on factory building 2,500
Raw materials (plastics, polystyrene, etc.) 79,700
Utility costs for factory 900
Supplies for general office 300
Wages for assembly line workers 63,700
Depreciation on office equipment 800
Miscellaneous materials (glue, thread, etc.) 1,200
Factory manager’s salary 6,400
Property taxes on factory building 500
Advertising for helmets 14,500
Sales commissions 10,600
Depreciation on factory building 1,600

Required:
Prepare an answer sheet with the following column headings:

Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs

Answers

Answer:

Cost Item             Direct            Direct        Manufacturing      Period

                            materials       labor         overhead               costs

Rent on factory                                           $11,600

equipment

Insurance on                                               $2,500

factory building

Raw materials     $79,700

Utility costs                                                  $900

for factory

Supplies for                                                                               $300

general office  

Wages assembly                       $63,700

line workers  

Depreciation on                                                                        $800

office equipment  

Miscellaneous                                               $1,200          

materials  

Factory manager’s                                        $6,400

salary

Property taxes on                                          $500

factory building

Advertising for                                                                           $14,500

helmets

Sales commissions                                                                   $10,600

Depreciation on                                              $1,600

factory building                                                                                          

TOTALS                   $79,700        $63,700     $24,700         $26,200

The firm has a target debt-equity (D/E) ratio of 0.76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent

Answers

Answer:

11.76%

Explanation:

The computation of the Weighted average cost of capital (WACC) is shown below:

= Weightage of debt × cost of debt × ( 1 - tax rate)+ (Weightage of  common stock) × (cost of common stock)

= (0.76 ÷ 1.76 × 9%) × ( 1 - 21%) +  (1 ÷ 1.76 × 15.3%)

= 3.07% + 8.69%

= 11.76%

Hence, the WACC is 11.76%

We simply multiplied the weight of capital stucture with its cost

A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is:_______

Answers

Answer:

Out the money.

Explanation:

A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.

An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.

A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.

In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.

Harvey’s Hardware is thinking about starting a line of lawnmowers to serve its customer base in the summer. The lawnmowers would be priced at $100 and Harvey the manager believes that they would sell 3 units. They have the following estimated costs.
Units Produced Labor Cost Total cost
0 0 100
1 50 150
2 100 200
3 200 300
4 350 450
What is the marginal cost of producing the third unit?​
a. ​$400
b. ​$300
c. ​$200
d. $100

Answers

Answer:

Harvey's Hardware

Marginal cost of producing the third lawnmowers:

d. $100

Explanation:

Harvey's marginal cost for producing the third unit of lawnmowers is the additional cost that resulted when the total cost increased from $200 to  $300.  However, it can be deciphered from the case that the marginal cost for Harvey, which it is supposed to be  a variable cost, is traceable to the direct labor costs.  This implies that the fixed cost element for Harvey in the production of the lawnmowers has been relatively fixed at $100.  It does not vary with the volume of production, while the direct labor costs vary with the volume of lawnmowers produced by Harvey.

Discuss three major factors that contribute to an employee's decision to join a union. Discuss the five reasons that have contributed to the trend of decline in unionization g

Answers

Answer:

The answer is below

Explanation:

Three major factors that contribute to an employee's decision to join a union.

1. Greater Bargaining Power

As an individual employee, it can be difficult to negotiate for wage increase or better working condition generally. However, being a member Union, together the group can negotiate and demand for what they feel is right for their members. In a rare occasion, the threat of a strike by a Union is a great tool to bargain well with the employer.

2. Minimize Discrimination

As a Union, it is easier to demand for equality in terms of wage, working condition, promotion, leave etc. Unlike individual employee, who may be facing discrimination from his or her supervisor as to employee related issue. Union can ensure the management used the right policies that seek for equality among all its employees without favoritism or discrimination.

3. Sense of Security

An employee may join the Union on the basis that, Union can save them against abrupt dismissal or other types of work insecurities including accident, injury, illness etc.

Also, Union can help secure retirement benefits and ensure the management improve on the employees' welfare generally.

Five reasons that have contributed to the trend of decline in unionization

1. Irrelevance appearance of the Union:

Many workers believe that Union is not necessary because in the time of economic boom, getting wage increase and other working benefits can be gotten be individual employee and not necessarily through a Union, and at the same time, during economic downturn, unions often times don't have the capacity to protect their members from layoffs, wage and benefit reductions and tougher working conditions.

2. Poor Image of the Union:

Many employers and employees tend to view union with negativity, in the sense that, often times, their demands can be unreasonable, and are characterized by issue of labor racketeering, mob influence and embezzlement.

3. Unions are Seen as Political:

For some employees, they believe that Union tend to use their money or Union dues to support a political candidate. This in turn has made some employees who are neutral, not wanting to join the Union.

4. Reliance on goverment:

Many employees now believe that, government, not Union gives better form of security and voice to air their opinions. These includes pensions, healthcare, protection.

5. Global competition and deregulation in Unionized industries:

Since most of the companies or industries that have union has been deregulated, this has increased its competition, there by, making the need for union not really necessary, because with or without Union, one may still faces sack.

A company has reported operating income of $25,000,000. The bond interest expense for the year is $4,000,000 and principal payments on bonds totaled $1,000,000. The company's debt service coverage ratio is:

Answers

Answer:

The company's debt service coverage ratio is 5.

Explanation:

The debt service coverage ratio refers to the financial ratio that give a measure of the ability of a company to meet its current debts obligation.

The debt service coverage ratio therefore compares the operating income of the company with the company's total debt service obligations.

The total service obligation includes the current interest, principal repayment, and any other debt obligations.

The formula for calculating the debt service coverage ratio is given as follows:

Debt service coverage ratio = Operating income / Total debt service costs

Form the question, we have:

Operating income = $25,000,000

Total debt service costs = Interest expense + Principal payments on bonds = $4,000,000 + $1,000,000 = $5,000,000

Substituting the values into the formula, we have:

Debt service coverage ratio = $25,000,000 / $5,000,000 = 5

Therefore, the company's debt service coverage ratio is 5.

Since this is greater than 1, this iimplies that operating profits made by the company is more than enough to pay its current debt service costs.

If the region or country where a company is located is experiencing a labor shortage, what should the company's management do

Answers

Answer:

In a situation where the company established in a region or country is experiencing a labor shortage, the best action to be taken would be to employ labourers from other regions or countries and moved them towards their location. This approach is adopted mostly by construction and hospitality industries.

Explanation:

Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse.
Projects Returns: Expected Value Standard Deviation
A $ 310,000 $ 173,000
B 676,000 413,000
C 163,000 120,000
D 134,000 101,000
a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)
a-2. Which of the following four projects should Mountain Ski Corp.
A. Project B
B. Project A
C. Project C
D. Project D

Answers

Answer:

B. Project A

Explanation:

Coefficient of variation=standard deviation/expected return value

Project A:

Coefficient of variation=$173,000/$310,000= 0.558  

Project B:

Coefficient of variation=$413,000/$676,000=  0.611  

Project C:

Coefficient of variation=$120,000/$163,000=0.736

Project D:

Coefficient of variation=$101,000/$134,000=0.754

The Project A has the lowest rate of risk per unit of return, hence, it is the preferred choice of investment

Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform. cousrse hero

Answers

Answer:

A promise to deliver a deed

Explanation:

The term, 'strict performance' is used to describe a contract between two parties. A contract is an agreement between two parties, and it is legally binding. When discharging contracts involving services, 'substantial performance' is required. For example, if I tell a painter to paint my house blue except for the kitchen and storeroom which should be painted white, and he does accordingly but failed in painting the kitchen white, he has performed substantially even though there was a minor breach. The consequences of which would be borne by him.

'Strict performance' is required in contracts where the terms are stated in express terms and the standards are very high. A 'deed' is such a contract because it is a document specifying the legal rights of a person or the ownership of a property. It requires the signatures of the two parties. Therefore, strict performance and adherence to the contractual deed are required.

Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.Activity Expected Costs Expected Activity Handling materials $625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 modelsAssume that the following information is available for the company’s two products for the first quarter of 2017.Production volume 10,000 units 30,000 unitsParts required 20,000 parts 30,000 partsBatches made 250 batches 100 batchesPurchase orders 50 orders 20 ordersInvoices 50 invoices 10 invoicesSpace occupied 10,000 sq. ft. 7,000 sq. ftModels 1 model 1 modelRequired:Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model?

Answers

Answer:

I can't understand this type of questions

If a municipality is expecting to receive federal funding for mass-transit programs, it could borrow against the expected funds to be received by issuing:_____.
A. BANs.
B. TANs.
C. GANs.
D. CLNs.

Answers

Answer:

Option C (GANs) is the correct answer.

Explanation:

GAN refers to "Grant Anticipation Notice". This can indeed be distributed by a municipality or community to "move forward" as well as make the proper use of another government grant extra funds expected future economic in the years ahead. Those other state grant monies are being used for investments in mass transportation, energy efficiency, including environmental regulations.

The other three alternatives are not related to the given instance. So that the above would be the appropriate one.

A 25-year old single client has just started his own small business and is not covered by a retirement plan. He has $5,000 to invest and currently has a low level of income. He wishes to start saving for retirement. The BEST recommendation is a:

Answers

Answer:

Roth IRA

Explanation:

Based on this scenario, it can be said that the best recommendation would be a Roth IRA. This is an individual retirement account that non-deductible tax-free growth for retirement at age 59 1/2. As of 2018, the yearly limit for a Roth IRA account is $5,500 meaning that the client in this scenario would not have any problem investing the entire $5000 as soon as they open the account. And since he is in a low tax bracket he should not have any problem opening an Account.

Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows.

Pretax Income from:

Percentage-of-Completion Completed-Contract Difference

2014 $752,200 $586,700 $165,500
2015 683,500 444,700 238,800

(a) Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2015?

Net income $
(b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?

Answers

Answer:

a. $478,450

b.Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

Cr   Retained earnings  $115,850

Explanation:

A. Calculation for the amount of net income that would be reported in 2015 for Pam Erickson Construction Company

Using this formula

Net income =(Income before income tax ) Income before income tax-Tax rate

Let plug in the formula

Net income= $683,500 - (683,500 × 30%)

Net income= $683,500 - $205,050

Net income= $478,450

B. Preparation of the Journal entry(ies) that are necessary to adjust the accounting records

For Pam Erickson Construction Company

Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

($165,500 × 30%)

Cr   Retained earnings  $115,850

($165,500 × (100%-30%)

Firm J has net income of $77,605, sales of $935,000, and average total assets of $467,500. Required: Calculate Firm J’s margin, turnover, and return on investment (ROI).

Answers

Answer:

Firm J's margin= 8.3%

Firm J's turnover= 2

Firm J's ROI= 16.6%

Explanation:

Form J has a net income of $77,605

The sales is $935,000

The average total assets is $467,500

Firm J's margin can be calculated as follows

Margin= Net income/sales

= $77,605/$935,000

= 0.083×100

= 8.3%

Firm J's turnover can be calculated as follows

Turnover= Sales/Average Total assets

= $935,000/$467,500

= 2

Firm J's return on investment can be calculated as follows

ROI= Net income/Average Total assets

= $77,605/$467,500

= 0.166×100

= 16.6%

Hence Firm J's margin, turnover and return on investment is 8.3%, 2 and 16.6% respectively.

There is a 3 percent defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $8 per hour and could inspect units in the process at the current production rate of 30 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ c. Should an inspector be hired based on costs alone? Yes No

Answers

Answer:

1a. $2.67 cost per unit

1b. $0.3 cost per unit

1c. Yes

Explanation:

1a. Calculation for what will be the inspection cost per unit If an inspector is hired

The following details were given in the question.

Defective average =3/100= 0.03

inspection rate = 30 per hour

Cost of inspector = 8 per hour

Correction cost = $10 each

Using this formula

Hired inspector =Cost per hour/Current production rate per hour

Let plug in the formula

Hired inspector=8 per hour/30 rate per hour

Hired inspector =0.267×100

Hired inspector=$2.67 cost per unit

1b. Calculation for what will be the defective cost per unit If an inspector is not hired

Using this Formula

No inspector=Defect rate %/Cost per defective

Let plug in the formula

No inspector= 3/100×$10

No inspector= $0.3 cost per unit

1c. Based on the above calculation the inspector should be hired.

New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $69,300 in cash. The book values and fair values of Red Rock's assets and liabilities were as follows: Book Value Fair Value Current assets $ 28,700 $ 22,300 Property, plant, and equipment 47,800 52,600 Other assets 3,500 5,800 Current liabilities 15,100 14,900 Long-term liabilities 29,000 21,400 Calculate the amount paid for goodwil

Answers

Answer:

Amount paid for goodwill is $24,900

Explanation:

Note: The data in the question are merged and they first sorted before answering the question as follows:

                                                          Book Value            Fair Value

Current assets                                     $ 28,700               $ 22,300

Property, plant, and equipment             47,800                 52,600

Other assets                                             3,500                    5,800

Current liabilities                                      15,100                  14,900

Long-term liabilities                                 29,000                21,400

The explanation of the answer to the question are now provided as follows:

Generally, goodwill refers to an intangible asset of a company and it can be in different for such as intellectual property, brand, commercial secrets, and reputation.

Amount paid for goodwill of an acquired company can be estimated by deducting the fair value of  net identifiable assets acquired from the consideration paid.

For this question, fair value of net identifiable assets can be calculated as follows:

Particular                                                  Fair Value ($)  

Current assets                                               22,300

Property, plant, and equipment                   52,600

Other assets                                                    5,800

Current liabilities                                          (14,900)

Long-term liabilities                                      (21,400)  

Fair value of net asset                                44,400    

Therefore, we have:

Amount paid for goodwill = Cash consideration paid - Fair value of net asset =  $69,300 - $44,400 = $24,900

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. If you want to limit your loss to $2,500, you should place a stop-buy order at ____. A. $37.50 B. $62.50 C. $56.25 D. $59.75

Answers

Answer:

The answer is B. $62.5

Explanation:

A stop order is an order to either buy or sell a stock immediately the stock price reaches a certain price. This particular price is called stop price.

A buy stop order is an order to buy a stock immediately the its price reaches a certain stop price. When stop price is above the current market price, a buy stop order is made.

Let's now go back to the question;

Stop buy order will be placed at:

($2,500 / 200 shares) + $50

= $12.5 + $50

= $62.5

Each year, public schools are rewarded with bigger budgets for achieving a rating of "excellent" or "recommended" and are punished for rating "needs improvement." These ratings are based on meeting thresholds on a broad set of measures such as attendance rates, graduation rates, standardized test scores, SAT scores, and so on. True or False: This funding structure incentivizes schools to seek out and serve lower-performing students. True False

Answers

Answer:

Each year, public schools are rewarded with bigger budgets for achieving a rating of "excellent" or "recommended" and are punished for rating "needs improvement." These ratings are based on meeting thresholds on a broad set of measures such as attendance rates, graduation rates, standardized test scores, SAT scores, and so on. True or False

This funding structure incentivizes schools to seek out and serve lower-performing students. True False

Explanation:

The funding structure is meant to encourage public schools for improved performance in all the performance measures.  These performance measures are the means to judge whether proper application is being achieved with the funds provided by the government to such schools.  They also encourage healthy competition among public schools when followed judiciously.  Since they have some internal and external benchmarks, the performance measures are like a balanced scorecard for performance evaluation.

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