Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.
Baby boomers in America are aging. Describe how this might affect the marketing mix for the business selected.
Answer and Explanation:
Baby boomers are the generation born between 1946 and 1964, after World War 2. They are known as "Baby boomers" because there was very high birth rate in that time. Depending on the business selected, the price, place,promotion and product(4ps) will be considered in arriving at the most suitable goods/services to sell to baby boomers. To better understand this, we would have to consider the habits typical of baby boomers. For example, baby boomers value relationships and family, and are also strong 9 to 5'ers with strong work ethics. Now we did have to factor this into our 4ps to know what would sell to them.
A(n) ________ is a hybrid between a conventional loan and a bond; at its heart it is a bond, but its terms are tailored to the borrower's individual needs, as a loan would be.
Answer:
Private placement
Explanation:
Private placement can be defined as non public offering also. This is because they are not sold through public offering but are sold through Private sales and the the number of investors are few and selected
These investors who receive the bonds are usually selected beforehand instead of doing it in the open market
Prepare the journal entries to record the following transactions for Reese Company, which has a calendar year end and uses the straight-line method of depreciation
On September 30, 2017, the company sold old equipment for $46,000. The equipment was purchased on January 1, 2015, for $96,000 and was estimated to have a $16,000 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2016.
Answer:
To explain the answer is given as follows,
Explanation:
Select the correct answer
What is a federal budget
A
an evaluation of the government's current revenue sures
an estimate of the government's total revenue and spending
a calentation of the amount needed to make the government debt free
a comparison of the government's foreign and domestie earnings
Resol
Next
B) an estimate of the government's total revenue and spending
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Answer: Please don’t advertise here
Answer:
dont advertise
Explanation:
In 2011, Starbucks terminated a contract with Kraft Foods that allowed Kraft to sell bagged Starbucks coffee in grocery stores. The early termination resulted in litigation between Kraft and Starbucks. After an arbitrator found in Kraft's favor, Starbucks recorded a liability for $2.8 billion.
Required:
This behavior is typical of many companies today. What is your opinion on the reasons companies behave this way? Is it realistic? Why or why not?
Answer:
Starbucks and Kraft Foods
The reasons companies terminate contracts before their expiration include impossibility of performance, material breaches of contract terms, misrepresentation, fraud, lack of capacity, mutual mistake, and frustration.
The reason for Starbucks' termination of the contract was "multiple material breaches." These were not established by the arbitrator, who delivered judgment in Kraft's favor.
It is not always realistic to terminate a long-standing contract without abiding by the contract termination terms because the damages and accruing interests that can be awarded against the terminating company may be too huge.
Explanation:
The "multiple material breaches" that Starbucks alleged against Kraft included the allegation that "Kraft did not always meet minimum advertising budgets or keep Starbucks involved in major initiatives." According to Starbucks, these violations eroded its "brand equity."
C Co. reported a retained earnings balance of $230,000 at December 31, 2020. In September 2021, C determined that insurance premiums of $81,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. C has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings
Answer:
$267,800
Explanation:
Calculation to determine What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings
First step is to Allocate the premium equally starting from 2020,2021 to 2022
Premium=$81,000/3 years
Premium=$27,000
Second step is to calculate the effect of the error
Effect of error=$81,000-$27,000
Effect of error=$54,000
Third step is to calculate the tax effect
Tax effect =$54,000*30%
Tax effect=$16,200
Fourth step is to calculate the 2021 beginning retained earnings
2021 Beginning retained earnings=$54,000-$16,200
2021 Beginning retained earnings=$37,800 Understated
Now let determine the Corrected retained earnings
Using this formula
Corrected retained earnings =Beginning balance + Understated Beginning retained earnings
Let plug in the formula
Corrected retained earnings= $230,000 + $37,800
Corrected retained earnings= $267,800
Therefore the amount that C should report as adjusted beginning retained earnings in its 2021 statement of retained earnings will be $267,800
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(a) On September 1, paid rent on the track facility for three months, $213,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000.
(c) On September 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On September 5, programs for 20 racing days in September, 25 racing days in October, and 25 racing days in November were printed for $3,500.
(e) The accountant for the concessions company reported that gross receipts for September were $160,000. Eight percent is due to the track and will be remitted by October 10.
Answer and Explanation:
the journal entries are as follows:
a Prepaid rent $213,000
To cash $213,000
(To record prepaid rent)
Adjusting entry:
Rent expense $71,000 ($213,000 ÷ 3)
Prepaid rent $71,000
(To record September rent expense)
b Cash $840,000
To unearned sales revenue $840,000
(To record cash received on season sales)
Adjusting entry:
Unearned sales revenue ($840,000 ÷ 12) $70,000
Sales revenue $70,000
(To record sales revenue recognised)
c Cash $300,000
Note payable $300,000
(To record note payable issued on borrowed amount )
Adjusting entry:
Interest expense ($300,000 × 6% ÷ 12) $1,500
Interest payable $1,500
(To record interest payable due)
d Prepaid advertising 3,500
To Cash 3,500
(To record cash paid for advertising)
Adjusting entry:
Advertising expense ($3,500 ÷ 60) × 20 $1,167
To prepaid advertising $1,167
e No entry
Adjusting entry:
Accounte receivable ($160,000 × 8%) $12,800
Sales revenue $12,800
(To record amout due)
An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect, i.e.a) random effects estimationb) nonlinear least squared estimationc) least Squares Dummy Variable (LSDV) approachd) ordinary least squares estimation
Answer:
The correct option is c) least Squares Dummy Variable (LSDV).
Explanation:
Dummy variables can be used in dynamic panel data models to explain the effect of each individual unit of a cross section that is unobserved but accurately characterizes the model of relation. The individual effect is assumed to be fixed across time in each individual in the least squares dummy variable (LSDV) estimation. If the unobserved effect and the explanatory variables are correlated, the assumption of fixed effects gives more exact estimators than the assumption of random effects.
Therefore, the most suitable method, if income is correlated with the unobserved family effect is least Squares Dummy Variable (LSDV).
This implies that the correct option is c) least Squares Dummy Variable (LSDV).
The Panama Canal has completed a tremendous expansion the will allow nearly double the capacity than previously available. What are the benefits and challenges from this expansion
Answer:
The answer is below
Explanation:
There are various benefits and challenges from the Panama Canal expansion
Some of the Benefits are:
1. There will be rapid growth in the trading activities within the Caribbean region
2. Pacific-Atlantic trade will increase generally, which will benefit the stakeholders and countries within the area including their seaports in terms of high concentration of goods, lower cost, and rapid circulation
Some of the Challenges are:
1. The need to adjust to logistical and services platforms by the Caribbean countries
2. How the stakeholders and countries around the region support and absorb the tremendous increase that is expected in the mobilization of containers.
Leo is the most active participant on his company's social networking platform, but his manager has an issue with one aspect of his posts. Which behavior is Leo's manager most likely to ask him to change
Group of answer choices.
A. He never addresses colleagues by name to keep things professional.
B. He always uses a friendly, but direct tone.
C. He often requests that colleagues post work-related data.
D. He spends time on the platform each day.
E. He often reminds colleagues to share their ideas through the platform
Answer:
A. He never addresses colleagues by name to keep things professional.
Explanation:
Operant conditioning can be defined as an associative learning process which involves reinforcing the strength of a behavior.
Behavior modification is a therapeutic process that is focused on changing any undesirable negative behavior in an individual through the use of positive or negative consequence and biofeedback.
Basically, behavior modification is based on operant conditioning principles, through negative or positive reinforcement, undesirable behaviors developed by an individual are mainly replaced with more desirable ones.
In this scenario, a behavior which Leo's manager is most likely to ask him to change is not addressing colleagues by name to keep things professional.
In a corporate or formal setting such as on a company's social network platform, it is very important that group members (employees) address their colleagues by name at all times. This behavior or action, is necessary to keep things professional and show individual interests in your colleagues.
Which of the following instruments are traded in the capital markets? Check all that apply. Treasury bills Certificates of deposit Common stocks Commercial paper Preferred stocks
Answer:
Common stocks
Preferred stocks
Explanation:
The Capital Market is a place where bonds and stocks are traded however it is only for stocks and bonds with a maturity that lasts over a year. Corporate bonds and government bonds fall under this category as a result.
Stocks represent ownership in a company so this is a long term ownership thing which is why it is traded in the capital market. This includes both common and preferred stock.
Find the present value of $3,900 under each of the following rates and periods: (Round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value $ b. 6.6 percent compounded quarterly for eight years. Present value $ c. 4.3 percent compounded daily for four years. Present value $ d. 5.7 percent compounded continuously for three years. Present value $
Answer:
(a) 8.9 percent compounded monthly for five years is $2,503.32.
(b) 6.6 percent compounded quarterly for eight years is $2,310.09.
(c) 4.3 percent compounded daily for four years is $3,283.75.
(d) 5.7 percent compounded continuously for three years is $3,287.05
Explanation:
The Present Value is calculated by using:-
Present Value = Future Value / (1 + r)n
Here, r is the Interest Rate and n is the number of periods.
(a). 8.9 percent compounded monthly for five years:-
Future Value = $3,900
Interest Rate (r) = 0.741667% [8.90% / 12 Months])
Number period (n) = 60 Years [5 Years x 12]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.00741667)60\\= $3,900 / 1.5579298\\= $2,503.32[/tex]
(b). 6.6 percent compounded quarterly for eight years:-
Future Value = $3,900
Interest Rate (r) = 1.65% [6.60% / 4]
Number period (n) = 32 Years [8 Years x 4]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.0165)32\\= $3,900 / 1.688248\\= $2,310.09[/tex]
(c). 4.3 percent compounded daily for four years
Future Value = $3,900
Interest Rate (r) = 0.0117808% [4.30% / 365 Days]
Number period (n) = 1460 Years [4 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000117808)1460\\\\= $3,900 / 1.187665\\\\= $3,283.75[/tex]
(d). 5.7 percent compounded continuously for three years
Future Value = $3,900
Interest Rate (r) = 0.0156164% [5.70% / 365 Days]
Number period (n) = 1095 Years [3 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000156164)1095\\= $3,900 / 1.1864749\\= $3,287.05[/tex]
how can strategic leaders be successful in an industry like the airlines industry
Answer:
Strategic leaders can help any airline related issue to be solved
Explanation:
Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager
On January 2, Dog Mart prepaid $19,920 rent for the year and recorded the prepayment in an asset account. Prepare the January 31 adjusting entry for rent expense. If an amount box does not require an entry, leave it blank. Jan. 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer:
Debit : Rent Expense $1,660
Credit : Prepaid Rent $1,660
Explanation:
The January 31 adjusting entry for rent expense would include a Debit to Rent Expense and Credit to Prepaid Rent - Asset Account at an amount of $1,660.
Calculation :
Rent Expense = 1/12 x $19,920 = $1,660
Number of Output Marginal Product Office Rent Labor Cost TotalCost
Workers boxes of Labor (dollars) (dollars)
0 0 --
1 220 400 200
2 250 800
3 680
4 160 1,200
5 940 1,000
6 980 1,600
Suzette's Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit and nuts for Suzette's mail order business. Suzette rents space for her factory for $400 a week in a nearby strip mall. She can hire temporary workers for $200 a week. Table 11-5 above shows her output and cost data. Use the table to answer questions a-e.
a. Complete the table.
b. In the last week of summer Suzette closes her business to go on a family vacation. What are her costs during that week?
c. In one week Suzette exactly breaks even. If her revenue for the week is $1,200, how many boxes of fruit and nuts did she produce?
d. Judging from the marginal product of labor data, would you say that Suzette had to settle for increasingly unproductive workers? Explain your answer.
e. Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal product of labor will continue in the same direction, what do you think she should do? Should she not commit until she can move to a larger space or should she just hire more workers? Explain your answer.
Answer:
a.
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
b. The costs during the week of summer vacation are: $400
c. She produced 840 boxes.
d. Yes. Suzette settled for increasingly unproductive workers as the marginal product of labor continued to decline. The cost of paying the workers remained at a flat rate of $200 per week without the corresponding output to show for the labor cost.
e. Suzette will need to hire more workers. However, their average productivity needs to be improved greatly to limit the total labor costs.
Explanation:
a) Data and Calculations:
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
The position in a craft union in which the holder is the chief administrator of the union hiring hall is the
Answer:
e. international union representative
Explanation:
Union representatives played a vital role with respect to supporting the employees for reporting to the union leaders when they are on the place of their peers. It acted as the main liason between the employers & employees as in this they support the employees and guidem them via the challenges that took place during the work
So at the time when the craft union position where the holder be the chief administrator of the union hiring hall so it should be the international union representative
It is sometimes suggested that the Fed should try to achieve price stability: that is, 0% inflation. If the velocity of money is constant, does zero-inflation mean the money supply should never change?
Answer:
Money supply should not change
Explanation:
Money supply should not change given that when the velocity ( flow ) of money is constant the Inflation is at zero ( 0% )
This is because the increase in supply of money without an appropriate increase in the economy of the country will be lead to inflation. To avoid any chance of inflation the velocity of money should remain constant.
Bank ABC has checkable deposits of $415 million and total reserves of $50 million. The required reserve ratio is 9 percent. The bank has excess reserves of Group of answer choices $14,550,000. $12,650,000. $365,000,000. There is not enough information provided to answer this question. $45,500,000.
Answer:
$12,650,000.
Explanation:
Reserves is the total amount of a bank's deposit that is not given out as loans
Reserves = Deposits - outstanding loans
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.09 x 415 million = 37.35 million
Excess reserves is the difference between reserves and required reserves
50 million - 37.35 million = 12.65 million
Determining opportunity cost
Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress:
Store Travel Time Each Way Price of a Dress
(Minutes) (Dollars per dress)
Local Department Store 15 102
Across Town 30 87
Neighboring City 60 63
Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Suit Total Cost
(Dollars) (Dollars per suit) (Dollars)
Local Department Store 103
Across Town 88
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .
1. The opportunity cost and total cost table is shown in the attached image below. 2. Juanita will minimize the cost of the dress if she buys it from the: Neighboring City.
The value of the next best alternative foregone when a decision is made to opt for resources like time, money, or effort to a certain option is known as opportunity cost. In other words, it is the cost of choosing one choice over another while considering the benefits and drawbacks of both options.
As there are only so many resources available, selecting one choice frequently implies forgoing its advantages. It's a manner of approaching decision-making that considers both the advantages and disadvantages of various options
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The complete question might be:
Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the dress: Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
1.Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
2. Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the :______.
A part of financial report of company Z is given below. Calculate days of supply for company Z.
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Cost of goods sold $12,500
Net revenue $24,800
a. More than 0 but less than or equal to 60
b. More than 60 but less than or equal to 100
c. More than 100 but less than or equal to 140
d. More than 140 but less than or equal to 200 More than 200
Answer:
Company Z
The days of supply for Company Z are:
d. More than 140 but less than or equal to 200
Explanation:
a) Data and Calculations:
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Total inventory = $5,280
Cost of goods sold $12,500
Net revenue $24,800
Days of Supply = Average Inventory/Cost of goods sold * 365
= $5,280/$12,500 * 365
= 154.2 days
b) The Inventory Days of Supply for Company Z or Days Inventory Outstanding" or Inventory Period measures the average number of days Company Z holds its inventory before selling it. As an efficiency ratio, the ratio measures the number of days Company Z's funds are held up in inventory before actual sales to customers.
Using the information below, calculate net income for the period:
Sales revenues for the period $1,323,000
Operating expenses for the period 258,000
Finished Goods Inventory, January 1 55,000
Finished Goods Inventory, December 31 60,000
Cost of goods manufactured
for the period 559,000
A. $774,000.B. $769,000.C. $530,000.D. $535,000.E. $448,000.
Answer:
See explanation
Explanation:
The correct choice is not available : Net Income is $511,000
We determined this as follows :
Income Statement for the ended December 31
Sales $1,323,000
Less Cost of Sales
Opening Finished Goods Inventory $55,000
Add Cost of goods manufactured $559,000
Less Ending Finished Goods Inventory ($60,000) ($554,000)
Gross Profit $769,000
Less Expenses
Operating expenses ($258,000)
Net Income $511,000
A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?
A. Control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.
B. Control is generally the same in almost all organizations.
C. Control will clearly increase as subordinates need less supervision.
D. Control will decrease as new employees join the company.
Answer:
b
Explanation:
The phrase Control will decrease as the manager climbs to higher levels in the organization and work becomes less standardized best describes a manager's need to exert tight controls on subordinates (span of control).
Thus, option A is correct.
What is the ideal span of control?For all businesses, assessing the scope of control is a useful health check. Organizations can easily identify potential areas for improvement or issue areas by visualizing spans and layers. The number of employees directly under management is referred to as the span of control. The number of subordinates that a supervisor or manager in an organization can effectively and efficiently supervise is referred to as the span of control.
A manager with five direct reports, for instance, has a span of control of five. As long as it is considered in the context of the company's organizational structure, having too many or too few direct reports is a useful indicator of how effective an organization is.
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Someone offers to buy your car for five, equal annual payments, beginning 6 years from today. If you think that the present value of your car is $15,000.00 and the interest rate is 10%, what is the minimum annual payment that you would accept
Answer:
The minimum annual payment that you would accept is $7,010.
Explanation:
Using the future value formula, we have:
Future value of the car in 6 years = Present value * (100% + Interest rate)^number of years = $15,000 * (100% + 10%)^6 = $26,573.42
Using the present value of an ordinary annuity formula, we have:
Minimum annual payment = Future value of the car in 6 years / ((1 - (1 / (100% + Interest rate))^number of years to pay equal amount) / Interest rate) = $26,573.42 / ((1 - (1 / (100% + 10%))^5) / 10%) = $26,573.42 / 3.79078676940845 = $7,010
Therefore, the minimum annual payment that you would accept is $7,010.
You have recently seen a credit card advertisement that states that the annual percentage rate is 10.2 percent. Of the credit card requires monthly payments, what is the effective annual rate of interest on the loan
Answer:
The answer is "[tex]=10.7\%[/tex]".
Explanation:
Using formula:
[tex]EAR=[(1+\frac{APR}{m})^m-1[/tex]
Where m=compounding period
[tex]\to EAR=[(1+\frac{0.102}{12})^{12}]-1[/tex]
[tex]=[(1+0.0085)^{12}]-1\\\\=[(1.0085)^{12}]-1\\\\=1.107-1\\\\=0.107[/tex]
[tex]=10.7\%[/tex]
Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gushes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?
A. Patty is a nice woman whose company made a lot of money, so she is willing to spread it around.
B. Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive.
C. Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns.
D. Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.
what is the most important value adding service criteria?
Answer:
functional value, monetary value, social value, and psychological value
Why hasn't globalization benefited the majority of the world's underdeveloped countries?
A. underdeveloped countries don't have the natural resources needed to fuel high levels of industrial production
B. underdeveloped countries use protectionist policies to isolate themselves from international trade
C. underdeveloped countries rely on exporting agricultural goods to developed countries
D. underdeveloped countries don't have the productive capacities necessary to take advantage of increasing national trade
The answer is D. Under developed countries don’t have the productive capacities necessary to take advantage of increasing national trade
Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system using one cost driver, SR6 costs $168.00 per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit. Given this change in the cost ________.
Answer:
Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
Explanation:
A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.
Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
Tax Savings. John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31st
Answer:
$378
Explanation:
Interest expenses in current year = Amount of borrowing*Interest rate*8 month/12 months
Interest expenses in current year = $30,000 * 6.75% * 8/12
Interest expenses in current year = $1,350
Tax saving on interest expenses = Interest expenses * Tax rate
Tax saving on interest expenses = $1,350 * 28%
Tax saving on interest expenses = $378
So, their tax savings for the first year ending December 31 will be $378.
