Logan, a 50% shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $116,000 tax loss for the year, Logan's tax basis in his MG stock was $158,000 at the beginning of the year, and he received $83,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?

Answer:

8.19%

Explanation:

Calculation to determine the company's WACC

First step is to calculate the CAPM rate of equity

Using this formula

CAPM rate of equity = Risk free rate + market risk premium * beta

Let plug in the formula

CAPM rate of equity=3.75%+(11.7%-3.75%)*0.93

CAPM rate of equity=11.14%

Second step is to calculate the DDM rate of equity

Using this formula

DDM rate of equity= Expected dividend next year/Price today + Growth rate

Let plug in the formula

DDM rate of equity=3/64.8+5.3%

DDM rate of equity=9.93%

Third step is to calculate the Cost of equity using this formula

Cost of equity = Average of CAPM and DDM

Let plug in the formula

Cost of equity=(11.14%+9.93%)/2

Cost of equity= 10.54%

Fourth Step is to calculate the Cost of debt (after tax)

Cost of debt (after tax) using financial calculator to compute YTM

PV -1047.5

FV 1000

PMT 1000*6.5%/2 32.5

N 22*2 44

Compute I 3.05%

YTM =3.05%*2 6.10%

Tax rate = 23%

Hence,

Rate of debt (after tax) = 6.1%*(1-23%)

Rate of debt (after tax) = 4.70%

Fifth step is to calculate the Rate of preferred stock using this formula

Rate of preferred stock = Annual dividend/Current price

Let plug in the formula

Rate of preferred stock=4.65/94.3

Rate of preferred stock=4.93

Sixth step is to calculate the Weight

Market value

Source

equity 240000*64.8= 15552000

debt 1047.5*9300= 9741750

preferred stock 8300*94.3=782690

Total 26076440

equity 15552000/26076440= 59.64%

debt 9741750/26076440=37.36%

preferred stock 782690/ 26076440=3.00%

Now let calculate compute WACC

WACC= weight * cost

equity 59.64%*10.54%=6.28%

debt 37.36%* 4.70% =1.76%

preferred stock3.00%*4.93%=0.15%

WACC = 8.19%

(6.28%+1.76%+0.15%)

Therefore the company's WACC is 8.19%

Answer:

f. ALL OF THE ABOVE

Explanation:

SWOT analysis can be regarded as

strategic planning technique that is been utilized to identify opportunities,

strengths as well as weaknesses, and threats associated with business competition as well as project planning of individuals or organization.

The major benefits to a S.W.O.T Analysis includes

✓Reduces the costs of strategic planning.

✓Simple to use.

✓Flexible

✓Fosters collaboration among managers of different functional areas.

✓Integrates and synthesizes diverse information.

Answer:

The Excel YEAR function returns the year component of a date as a 4-digit number.

Explanation:

Answer:

Berry Bloom Co.

This type of problem that requires Berry to perform an analysis to determine how many bouquets of flowers to procure in preparation for Mother's Day is a:

Newsvendor Problem.

Explanation:

a) Data and Calculations:

Selling price of bouquets of flowers = $20/bouquet

Cost price of bouquets of flowers = $15/bouquet

Profit per bouquet during Mother's Day = $5 ($20 - $15)

After-holiday selling price of the bouquets of flowers = $10/bouquet

Loss per bouquet of flower after the holiday = $5 ($15 - $10)

b) The Newsvendor model describes the challenges facing Berry Bloom as it gets ready for the Mother's Day holiday.  The company must decide the volume of bouquets of flowers to procure prior to the holiday.  The purchase decision becomes a problem because the demand for flowers is not certain, and the company is aware that unsold bouquets will be sold at a loss of $5 per bouquet after the holiday.

Answer:

5.7255

Explanation:

From the given information:

[tex]T_1 \to \text{time between car accident \& reporting claim} \\ \\ T_2 \to \text{time between reporting claim and payment of claim}[/tex]

The joint density function of [tex]T_1[/tex] and [tex]T_2[/tex] is:

[tex]f(t_1,t_2) = \left \{ {{c \ \ \ 0<t_1<6, \ \ \ 0<t_2<6, \ \ \ t_1+t_2<10} \atop {0} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ otherwise} \right.[/tex]

Area(A): [tex]= 6\times 6 - \dfrac{1}{2}*2*2[/tex]

= 34

The limits are:

[tex]\text{limits of } \ t_1 \ from \ 0 \ is \ 10 \to t_2 \\ \\ \text{limits of } \ t_2 \ from \ 0 \ is \ 4 \to 6[/tex]

Also;

[tex]\text{limits of } \ t_1 \ is \ 0 \to 6 \\ \\ \text{limits of } \ t_2 \ is \ 0 \to 4[/tex]

∴

[tex]\iint f(t_1,t_2) dt_1dt_2 =1 \\ \\ c \iint 1dt_1dt_2 = 1 \\ \\ cA = 1 \\ \\ \implies c = \dfrac{1}{34}[/tex]

To find;

[tex]E(T_1+T_2) = \iint (t_1+t_2)c \ \ dt_1dt_2 \\ \\ \implies \dfrac{1}{34} \Big[\int \limits^4_0 \int \limits^6_0(t_1+t_2) dt_1 \ dt_2 + \int \limits^6_4 \int \limits^{10-t_2}_0(t_1+t_2) dt_1 dt_2 \Big] \\ \\ \implies \dfrac{1}{34} (120 + \dfrac{224}{3}) \\ \\ = \mathbf{5.7255}[/tex]

Answer:

See below

Explanation:

Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021 would be calculated as;

Step 1

= $413,000 × 1%

= $413,000 × 0.01

= $4,130

Step 2

= $3,000 - $3,690

= ($690)

Step 3

= $4,130 + ($690)

= $4,130 - $690

= $3,440

Therefore, Rahal's final balance in its allowance for uncollectible accounts at December 31, 2020 is $3,440

Answer:

1. Total cost of customer order shipped via LTL carrier is $9,114.

2. XYZ company would save $162 by using the alternate shipping/delivery method.

3. The cost of these two methods would be the same when the number of customers is approximately 6.

Explanation:

To ease answering the question, let us first the define as follows:

N = Number of customers = Number of Order

A = Each customer order shipped via LTL carrier costs = $147

B = Average order weight = 750

C = Warehouse break-bulk fee per hundred weight = 13

D = Total cost of weight = ((N * B) / 100) * C

E = Local LTL delivery fee = $36

F = Total Local LTL delivery fee = N * E

G = Full TL shipment cost (220 miles) = 675

H = Total cost of shipping using 3PL = D + F + G

I = Total cost of customer order shipped via LTL carrier = N * A

J = Difference between the cost of the two methods = I - H

1. What is the total cost of delivering to all customers via LTL carrier (current method

This can be calculated using E above as follows:

Total cost of customer order shipped via LTL carrier = E = N * A = 62 * $147 = $9,114

2. How much money would XYZ company save by using the alternate shipping/delivery method?

From the definitions above, we have:

N = Number of orders = 62

D = Total cost of weight = ((N * B) / 100) * C = ((62 * 750) / 100) * 13 = $6,045

F = Total Local LTL delivery fee = N * E = 62 * 36 = $2,232

G = Full TL shipment cost (220 miles) = $675

H = Total cost of shipping using 3PL = D + F + G = $6,045 + $2,232 + $675 = $8,952

I = Total cost of customer order shipped via LTL carrier = $9,114

J = Difference between the cost of the two methods = I - H = $9,114 - $8,952 = $162

Therefore, XYZ company would save $162 by using the alternate shipping/delivery method.

3. At what number of customers would the cost of these two methods be the same?

H = Total cost of shipping using 3PL = D + F + G = (((N * B) / 100) * C) + (N * E) + G ............ (1)

Substituting all the relevant value into equation (1), we have:

H = (((N * 750) / 100) * 13) + (N * 36) + 675

I = N * 147

Equating H and I and solve for N, we have:

(((N * 750) / 100) * 13) + (N * 36) + 675 = N * 147

((N0.01 * 7.50) * 13) + 675 = N147 - N36

(N0.075* 13) + 675 = N111

N0.975 + 675 = N111

675 = N111 - N0.975

N110.025 = 675

N = 675 / 110.025

N = 6.13496932515337.

By approximating to a whole number since we are talking about human being, we have:

N = 6

At what number of customers would

Therefore, the cost of these two methods would be the same when the number of customers is approximately 6.

Answer:

d. People are willing to accept a currency in the future as compensation for debts accrued earlier

Explanation:

Money can be used to pay your current debts at a later date since $100 will still be $100 in the future. They might lose some of its value due to inflation, but they do not spoil or rot, and will probably be accepted in the future. imagine trying to pay an old debt with rotten tomatoes or an old cow.

Answer:

n= 12.25 years

Explanation:

Giving the following information:

Present value= $10,200

Future value= $17,800

Interest rate= 6.2%

First, we need to calculate the number of years it will take the investment to reach $17,80. We need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(17,800/10,200) / ln(1.062)

n= 9.25 years

Now, the total number of years:

n= 9.25 + 3

n= 12.25 years

Explanation:

well I will say yes meaning true because he or she was put in charge of the entire job

Answer:

Cost allocation

Explanation:

Cost allocation means the process where the identification, aggregation, and the allocating of the cost is made to the various cost objects. It plays an important role as the cost i.e. incurred for generating a particular product or rendering a service would be determined

So if the manufacturing overhead cost assigned and the other indirect cost so this we called cost allocation

Answer:

The appropriate answer is "$8,457,50".

Explanation:

The given values are:

Direct material cost,

= $9,500

Direct labor cost,

= $10,400

Units completed in job 412,

= 4

Now,

The total cost for completion of job 412 will be:

=  [tex]Direct \ materials \ cost + Direct \ labor \ costs[/tex]

On substituting the values, we get

=  [tex]9,500 + 10,400[/tex]

=  [tex]19,900[/tex] ($)

Unit produced cost will be:

=  [tex]\frac{19,900}{4}[/tex]

=  [tex]4,975[/tex] ($)

70% of unit produced cost will be the profit margin, then

=  [tex]70 \ percent\times 4,975[/tex]

=  [tex]3,482.50[/tex] ($)

hence,

The price charged to the customer will be:

=  [tex]Unit \ product \ cost + Profit \ margin[/tex]

On substituting the values, we get

=  [tex]4,975 + 3,482.50[/tex]

=  [tex]8,457,50[/tex] ($)

Answer:

Cliff Consulting

a) Annual Break-even point in sales revenue is:

= $800,000

b) Annual margin of safety is:

= $400,000

c) If fixed costs increases by $80,000, the break-even point in sales revenue

= $945,455

d) Dollar Sales Revenue required to provide an after-tax net income of $250,000 is:

= $1,375,375

e) Abbreviated Contribution Income Statement

Sales revenue       $1,375,375

Variable costs =          618,919

Contribution =        $756,456

Fixed costs               440,000

Before tax income    316,456

Income tax (21%)        66,458

After-tax income   $249,998

equivalent to $250,000

Explanation:

a) Data and Calculations:

CLIFF CONSULTING

Contribution Income Statement

For the Year Ended September 30

Sales revenue                                      $ 1,200,000

Variable costs

Cost of services                     $ 480,000

Selling and administrative          60,000 540,000

Contribution margin                                660,000

Fixed Costs -selling and administrative 440,000

Before-tax profit                                      220,000

Income taxes (21%)                                    46,200

After-tax profit                                       $ 173,800

Break-even point in sales revenue = Fixed costs/Contribution margin ratio

= $440,000/0.55

= $800,000

Annual margin of safety = normal sales revenue minus break-even sales revenue

= $1,200,000 - $800,000

= $400,000

Contribution margin ratio = contribution margin/sales revenue * 100

= $660,000/$1,200,000 * 100 = 55%

If fixed costs increases by $80,000, the break-even point in sales revenue

= ($440,000 + $80,000)/0.55 = $520,000/0.55 = $945,455

To achieve after-tax net income of $250,000, the required dollar sales revenue:

Net income after-tax = $250,000

Tax rate = 21%

Net income before tax = $250,000/1-21%

= $250,000/0.79 = $316,456

Sales dollars to achieve target profit = (Fixed costs + Target Profit/1 - 0.21)/Contribution margin

= ($440,000 + ($250,000/0.79))/0-55

= ($440,000 + $316,456)/0.55

= $756,456/0.55

= $1,375,375

Abbreviated Contribution Income Statement

Sales revenue       $1,375,375

Variable costs =          618,919

Contribution =        $756,456

Fixed costs               440,000

Before tax income    316,456

Income tax (21%)        66,458

After-tax income   $249,998

After-tax income is equivalent to $250,000

Answer:

multiply ur answer by 0.2 if you want to solve for the income tax rate

Explanation:

Question Completion:

Drop-down menu:

- excludable

- non-excludable

- rivalrous

- non-rivalrous

- common goods

- club goods

- public goods

- private goods

Answer:

Correct words to finish the sentences:

Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.

If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.

Considering those two characteristics, fish in the ocean are_common goods___.

Explanation:

The two key characteristics of a public good are: it is non-excludable and non-rivalrous.  A common good is non-excludable but rivalrous. A private good is excludable and rivalrous.  A club good is excludable and non-rivalrous.

Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.

Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.

Answer and Explanation:

The preparation of the production budget is presented below:

Particulars             VCH                  MTV

Expected Sales:  

Eastern zone        12500            12960

Midwest zone       19000           19800

Western zone          14500        9840

Add: Desired inventory 6900 5250

Less: Opening inventory (2900) (4000)

Production in units  50,000 43,850

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5.75 - 5.8)*31,000

Direct material price variance=  $1,550 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (63,000*0.5 - 31,000)*5.75

Direct material quantity variance= $2,875 favorable

To calculate the direct labor rate and efficiency variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (10,500 - 10,600)*21.5

Direct labor time (efficiency) variance= $2,150 unfavorable

Standard quantity= (10/60)*63,000= 10,500 hours

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (21.5 - 20.5)*10,600

Direct labor rate variance= $10,600 favorable

Actual rate= 217,300 / 10,600= $20.5

Answer:

D. The quantity of a good demanded is equal to the quantity supplied.

Explanation:

Deman will not change, but supply decrease. Demand will decrease.

Answer:

WACC = 6.92%

Explanation:

total equity = 210,000 x $36 = $7,560,000,weight of equity = 56%

cost of equity:

36 = 1.65672 / (Re - 4%)

Re = 8.602%

total bonds = $5,940,000, weight of bonds = 44%

bond YTM = 7.24%

after tax cost = 7.24% x 66% = 4.78%

WACC = (.56 x 8.602$) + (.44 x 4.78%) = 4.817 + 2.103 = 6.92%

YTM = (70 + 10/4.89) / (1990/2) = 72.04 / 995 = 7.24%

715

Answer:

B. False

Explanation:

I majored in Business

Answer: b

Explanation: Because the monopolist must lower the price on all units in order to sell additional units, marginal revenue is less than price. Because marginal revenue is less than price, the marginal revenue curve will lie below the demand curve.

Answer: $10

Explanation:

First, we need to calculate the total budgeted selling and administrative expenses for March which will be:

Advertising = $50,000

Add: Executive salaries = $60,000

Add: Depreciation on office equipment = $20,000

Add: Other = $40,000

Total = $170,000

Since the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is:

= $170000 / 17000

= $10

Answer:

a. oligopoly.

b. an economic profit.

c. economic profits will fall.

Explanation:

An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.

Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.

The characteristics of an oligopolistic market structure are;

I. Mutual interdependence between the firms.

II. Market control by many small firms.

III. Difficult entry to new firms.

Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.

Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.

In economics, market structure refers to how different industries are distinguished depending on the degree and form of product and services rivalry. It's based on the features that influence the outcomes and behaviors of businesses in a given market.

a) An oligopoly is a business that operates in the United States with only two other competitors in the same industry.

Reason:

An oligopoly is a market structure with a small number of enterprises and high entry barriers. A competitive environment in which there are just a few vendors reveals to be Oligopoly because there are only two competitors available in the business.

b) Oligopolistic businesses will almost certainly make an economic profit.

Reason:

In an oligopoly, all firms would have to work together to raise prices and make a bigger profit. The bulk of oligopolies form in industries where goods are essentially homogeneous and give essentially the same advantage to customers.

c) Economic earnings are expected to diminish or fall if international enterprises begin to supply the product, increasing the number of competitors.

Reason:

As the supply curve changes to the right, the market price begins to fall, and as a result, existing and new enterprises' economic earnings fall. Due to the entry of new enterprises, which pulls down the market price, economic profit is zero in the long term.

For more information regarding the oligopoly market, refer to the link: https://brainly.com/question/14285126?referrer=searchResults

Answer:

COGS= $960,000

Explanation:

Giving the following information:

Beginning inventroy= $65,000

Ending inventory= $55,000

Total Purchase=  220,000 + 140,000 + 170,000+ 420,000= $950,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning inventory + cost of goods purchased - ending inventory

COGS= 65,000 + 950,000 - 55,000

COGS= $960,000

Answer:

$404,800

Explanation:

Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation

Using this formula

Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid

Let plug in the formula

Rent =36,850/ (36,850+30,150) x $736,000

Rent=36,850/67,000*$738,000

Rent=0.55*$736,000

Rent= $404,800

Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

Answer:

Gore Corp. is depreciating over a longer term than Ross Corp. This means that on a yearly basis, they will have less depreciation expenses. This would give them a higher net income than Ross Corp but as a result they will then have to pay a higher tax.

Ross Corp on the other hand will be depreciating over a shorter term so this would mean that they are recognizing a higher depreciation expense per year. This would mean that their net income will be lower and by extension their taxes will be lower as well.

Answer:

Depreciation expense= $36,875

Explanation:

Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.

An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:

Annual depreciation:  

= (cost of assets - salvage value)/ Estimated useful life

Cost - 220,000

Residual value = 43,000

Estimated useful life = 4 years

Annual depreciation = (220,000- 43,000)/4 =44,250

Annual depreciation = 44,250.

Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.

Thus March 17, 2018 to December 2018 is taken to be 10 full months

Depreciation expense = 44,250.× 10/12 = 36,875

Depreciation expense= $36,875

Answer:

$6,779

Explanation:

Calculation to determine the incremental annual cash flow associated with the project

First step is to calculate the depreciation

Depreciation=[($64,000/6 years)-($82,000/10 years)

Depreciation=$10,667-$8,200

Depreciation=$2,467

Now let calculate the Incremental annual cash flow

Incremental annual cash flow ={($9,000-$2,467)

-[($9,000-$2,467)*34%]+$2,467}

Incremental annual cash flow =[($6,533-$2,221)+$2,467]

Incremental annual cash flow =$4,312+$2,467

Incremental annual cash flow=$6,779

Therefore the incremental annual cash flow associated with the project is $6,779

Answer:

amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.

Explanation:

Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.

It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.