Answer:
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
Explanation:
Assets increase =($110,000-$100,000)
Assets increase=$10,000
Total stockholders' equity decreases=$100,000-$110,000
Total stockholders' equity decreases= -$10,000
Therefore Based on the information given what is true of the net effect of the transaction are :
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
Bill Smith is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, and D. As part of his analysis, Smith computed the Sharpe ratio and the Treynor's measure for all four funds. Based on his finding, the ranks assigned to the four funds are as follows: Fund Treynor Measure Rank Sharpe Ratio Rank A 1 4 B 2 3 C 3 2 D 4 1 The difference in rankings for Funds A and D is most likely due to:
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn. This economy has available a total of 1,000,000 hours of work per day.
Answer:
so what's your question
A company prints proceedings books for a trade show that are sold to attendees for $10 per book. The books cost the company $2 per book to make. Any books left over at the end of the trade show can be sold to a local paper mill for $0.50 each, but it costs the printing company $0.25 per book to haul them to the paper mill. What are the underage and overage costs for the books
Answer and Explanation:
Given that
Selling price = $10
Cost price = $2
Now
The Salvage Value (SV) = 0.50 - 0.25 = 0.25
So,
Underage penalty (Cu) = Selling price - Cost price
= $10 - $2
= $8
And,
Overage penalty (Co) = Cost price - Salvage Value
= $2 - $0.25
= $1.75
Hence, the same is to be conisdered
Match each of the following terms with the correct definition:
a. additional paid-in capital
b. issued and outstanding
c. retained earnings
d. treasury stock
e. authorized share capital
f. par value
Correct Definitions:
A. The price at which each share is recorded in the company’sbooks
B. Held by investors
C. Cumulative amount of profits that have been plowed back
D. The difference between the amount of cash raised by anequity issue and the par value of the issue
E. The maximum number of shares that can be issued withoutshareholder approval
F. The amount that the company has spent
For 126 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for serving. Each day, she took a sample of 8 bottles. The average across all 1,008 bottles (126 days, 8 bottles per day) was 58 degrees Fahrenheit. The standard deviation across all bottles was 1.5 degree.
When constructing an X-bar chart, what would be the center line?
Answer:
58 degrees fahrenheit
Explanation:
the centerline will be 58 degrees fahrenheit
the upper control limit = 58 degrees + (1.099 x 1.5) = 59.6485 degrees fahrenheit
the lower control limit = 58 degrees - (1.099 x 1.5) = 56.3515 degrees fahrenheit
the A₃ control value for n = 8 is 1.099
QS 9-8 (Algo) Recording employer payroll taxes LO P3 Merger Co. has 10 employees, each of whom earns $1,700 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the March 31 journal entry to record the March payroll taxes expense. (Round your answers to 2 decimal places.)
Answer:
Dr Payroll Tax Expense: $2,321
Cr FICA- Social security taxes payable $1,054
Cr FICA- Medicare taxes payable $247
Cr SUTA-State unemployment taxes payable $918
Cr FUTA- Federal unemployment taxes payable $102
Explanation:
Preparation of the March 31 journal entry to record the March payroll taxes expense
March 31
Dr Payroll Tax Expense: $2,321
($1,054+$247+$918+$102)
Cr FICA- Social security taxes payable $1,054
[($1,700*10)*6.2%]
Cr FICA- Medicare taxes payable $247
[($1,700*10)*1.45%]
Cr SUTA-State unemployment taxes payable $918
[($1,700*10)*5.4%]
Cr FUTA- Federal unemployment taxes payable $102
[($1,700*10)*0.6%]
(To record payroll taxes expense)
Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to lock in the interest rate it pays by going long an FRA with Bank of America. The FRA specifies that Citibank will borrow at a fixed rate of 0.04 for 6 months on $1 million in 2 years. If the 6 months LIBOR rate proves to be 0.01. Then to settle the FRA, what is the cash flow to Citibank at the end of 2 years
Answer:
"$ 15,000" is the correct solution.
Explanation:
The given values are:
Agreed fixed rate,
= 0.04
LIBOR rate,
= 0.01
No. of borrowing months,
= 6
National amount,
= 1000000
Now,
The net payment will be:
= [tex]National \ principal*(Floating \ rate - Fixed \ rate)\times \frac{No. \ of \ months}{12}[/tex]
On substituting the above values, we get
= [tex]1000000\times (0.01-0.4)\times \frac{6}{12}[/tex]
= [tex]1000000\times (-0.03)\times 0.5[/tex]
= [tex]-15,000[/tex] ($)
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles is E$/EURLA=1.5653 , while in Frankfurt, it is E$/EURFR=1.586.
You can make a profit for the bank if you buy euros in _______ and sell them in _________.
Answer:
Explanation:
Profit will be made by you for the bank if you buy the Euros in Los Angeles, and sell the Euros to customers in Frankfurt...
Buying in Los Angeles comes at a price of $1 = €1.5653, then going ahead to sell in Frankfurt means you get to sell it at a rate of $1 = €1.586
Although this is a very tiny difference, of 0.0207. The reality is that when you're doing a lot of tradings that involves currency, you tend to see the profit. If for example, a total of $1 million is traded, then the profit would be $20700, which we all can attest to the fact that it's a lot of money.
Task 1 . The income (in thousand $) of 5 small companies labeled AA , BB , CC , DD , EE has been calculated and the results are as follo,;vs:
2.49j 2.39j 2.39, 1.79, 3.8 .
1. Put the obtained data as points on the following coordinate system.
Income value
3
2
1
AA BB CC DD EE Company
2. Calculate the mean value from the sample for these data:
On the chart draw a line y = x (a horizontal line at the level of the mean of the sample) and for every measurement mark the difference between the value of the measurement and the sample mean.
3. Calculate the samples variance, standard deviation and the estimator of variance:
Icr2 =_.!_ f=_(xi -
I• I
__ n i=l
x_) _= iT
4. Write proper values into the following tagged fields and interpret the results obtained:
CJ CJ
x - 20- x - a x+ a x+ 20-
Date of simulation : 2021 03 02 20:30:20.050 Seed: 20302 8071 .
8
Answer:
yggjuytygyvcfryttgggv
Explanation:
Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5250000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3200000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6440000 note payable and an 10%, 4-year, $12550000 note payable.
Required:
What are the weighted-average accumulated expenditures?
Answer:
$8,395,833
Explanation:
Calculation to determine What are the weighted-average accumulated expenditures
Weighted-average accumulated expenditures
=($6,400,000 × 10/12) + ($5,250,000 × 7/12) + ($8,650,000 × 0/12)
Weighted-average accumulated expenditures=$5,333,333+$3,062,500+0
Weighted-average accumulated expenditures=$8,395,833
Therefore the weighted-average accumulated expenditures will be $8,395,833
The following facts relate to Oriole Corporation.
1. Deferred tax liability, January 1, 2020, $41,600.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $98,800.
4. Pretax financial income for 2020, $104,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $249,600.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $36,400.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
1. Compute income taxes payable for 2020:
2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
3. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes."
Answer: See explanation
Explanation:
a. The income taxes payable for 2020 will be:
= Taxable income for 2020 × Tax rate
= $98,800 × 20%
= $98,800 × 0.2
= $19760
b. The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 goes thus:
Income tax expense:
= Pretax financial income for 2020 × Tax rate
= $104,000 × 20%
= $104,000 × 0.2
= $20800
The income taxes payable = $19760
Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts = $249,600
Deferred tax liability required at December 31, 2020:
= $249,600 × 20%
= $49920
Deferred tax liability, January 1, 2020 = $41600
Therefore, the increase in deferred tax liability in 2020 will be:
= $49920 - $41600
= $8320
Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts = $36,400
Deferred tax assets balance required at December 31, 2020 will be:
= $36,400 × 20%
= $36400 × 0.2
= $7280
Deferred tax asset, January 1, 2020 = $0
Therefore, the increase in the deferred tax asset in 2020 will be:
= $7280 - 0
= $7,280
Therefore, the journal entry will be:
Debit Income Tax Expense = $20800
Debit Defered Tax Asset = $7,280
Credit Income Tax Payable = $19760
Credit Defered Tax Liability = $8320
(To record income tax expense, defered assets and defered liabilities)
c. The income tax expense section of the income statement for 2020 will be:
Income before Income Tax = $104000
Less: Income Tax expense - Current = $19760
Less: Income Tax expense - Defered = $1040
Net income = $83200
Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.
Answer:
The Carlberg Company
Journal Entry:
Debit Work in Process (Painting Department) $36,000
Credit Work in Process (Assembly Department) $36,000
To record the transfer of 10,000 units from the assembly department to the painting department.
Explanation:
a) Data and Calculations:
Units started during November = 12,500
Assembly Department
Units Percent of Direct Percent of
Materials Added Conversion
Beginning work in process 3,000 70% 30%
Units started during Nov. 12,500
Units transferred out 10,000 100% 100%
Ending work in process 5,500 80% 30%
Cost of beginning work in process = $2,130 $940 $3,070
Costs added during the month: $ 20,910 $ 22,360 $43,270
Total costs of production $23,040 $23,300 $46,340
Equivalent units of production:
Units transferred out 10,000 10,000 10,000
Ending work in process 5,500 4,400 1,650
Total equivalent units 14,400 11,650
Cost per equivalent unit:
Total costs of production $23,040 $23,300
Total equivalent units 14,400 11,650
Cost per equivalent unit $1.60 $2.00
Cost assigned to: Materials Conversion Total
Units transferred out $16,000 $20,000 $36,000
($1.60*10,000) ($2*10,000)
Ending Work in process 7,040 3,300 10,340
($1.60*4,400) ($2*1,650)
Total costs allocated $23,040 $23,300 $46,340
Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $14,750 basis and a $22,650 fair market value. On January 2 of this year, Kimberly has a $20,700 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a $18,175 basis and an $26,075 fair market value.
a) What is the amount and character of Kimberly’s recognized gain or loss on the distribution?
b) What is Kimberly’s remaining basis in KST after the distribution?
c) What is KST’s basis in the land Kimberly contributed after Kimberly receives this distribution?
Answer: A) $3,425 B)$5,950 C)$18,175
Explanation:
a)Kimberly's capital gain = land's Fair market value -non contributed land's Fair market value = $26,075- $22,650= $3,425
b)Kimberly's basis after the distribution = basis in KST + gain - Carryover basis in land = $20,700 + $3, 425 - $18,175 = $5,950
c) KST's basis on the land =KST land's basis on contribution+ Kimberly's gain = $14,750+$3, 425 = $18,175
Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed. Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Answer:
(a) Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build. Therefore, Judy cannot rescind his promise to Liza.
(b) No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land. Therefore, Ralph can rescind his promise.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Now Judy wants to rescind his promise to Liza.
(b) Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed.
Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Explanation of the answers is now provided as follows:
Each of the two cases will be decided based on the principle promissory estoppel.
Promissory estoppel refers to the legal principle that states that despite that there us formal consideration attached to a promise, it is still enforceable by law if the promise from the promisor makes the promisee to rely on the promise to his subsequent detriment.
(a) Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build?
Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build.
The is because Liza has relied on the promise from Judy to her subsequent detriment by giving up her up her homestead and already starts construction of a home. Since the Judy promise from Judy induces the action of Liza that is reasonably expected by Judy, he cannot rescind his promise to Liza.
(b) Will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land.
This is because there is Ed has not taken any definite and substantial action to justify that he has relied on the promise from Ralph to his subsequent detriment. It may not be possible to construe the purchase of an option on the tract of land by Ed as a definite and substantial action. Therefore, Ralph can rescind his promise.
Cavy Company estimates that the factory overhead for the following year will be $1,745,300. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 56,300 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
According to the attraction-selection-attrition (ASA) theory, job applicants Question 27 options: do not typically pay much heed to organizational values when applying for work. with a variety of personal characteristics are preferred by organizations, resulting in a more heterogeneous organization. avoid employment in companies whose values seem incompatible with their own values. avoid other applicants if they are competing for the same jobs.
Answer:
avoid employment in companies whose values seem incompatible with their own values.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Natural Rate of Unemployment (NU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Cyclical unemployment rate (CU).
The attraction-selection-attrition (ASA) theory was developed and introduced by Benjamin Schneider. This theory typically gives the reason why a business firm or organization looks and feels the way it does with respect to the employees and employers.
According to the attraction-selection-attrition (ASA) theory, job applicants avoid employment in companies whose values seem incompatible with their own values. Also, it states that job applicants are usually attracted to colleagues having similar assumptions and values.
Zeffer is a small but growing bottling company that competes with large soft drink heavy-hitters. To set itself apart, Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas. The company hopes that these soft drinks will become popular in various sectors of the U.S. market. Answer the following question based on the scenario described above. Zeffer executives have decided to focus marketing efforts on the ________ market, since this group is expected to grow more rapidly than
Answer:
Hispanic
Explanation:
In the United States Hispanic population has continued to be responsible for half of the total population growth since 2010 till date.
In this time Hispanics contributed 52% to the 18.9 million population growth in the United States.
Based on this trend Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas and targeting the Hispanic market will make their product popular rapidly.
Two organizations are both in the technology industry. What is most likely true about their corporate cultures?
Answer:
it's about vision, value, practices
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be: Multiple Choice number of classes offered in each division. student graduation rate. square footage of each division. number of students advised from each division. relative salaries of division heads.
Answer: number of students advised from each division
Explanation:
Measuring actual performance can be done through:
a.
Assessing the behavior of employee
b.
Assessing the output of employee
c.
Both are correct
d.
Non are correct
Answer: c. Both are correct
Explanation:
Assessing the output of an employee shows some of the actual performance of that employee as it shows just how much they have contributed to the overall output of the company.
Assessing employee behavior also shows actual performance because behavior can influence output for example, how often the employee shows up to work and their work ethic when there. In the service industry as well, behavior can affect company sales as people react to how they are treated. It is therefore an important matric for actual performance evaluation.
Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This expansion project will last for five years. The net operating cash flows from the expansion project at the end of year 1, 2, 3, 4 and 5 are estimated to be $22,500, $25,800, $33,000, $45,936 and $58,500 respectively. Frieda has a capital structure consisting of 20% debt and 80% equity. The after-tax cost of debt is 16% and the cost of equity is 18.5%.
What is Frieda%u2019s weighted average cost of capital?
a. 16%
b. 18%
c. 24%
d. 22%
Answer:
WACC = 0.18 or 18%
Option b is the correct answer.
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component D, P and E represents debt, preferred stock and common equity respectively r represents the cost of each componentrD * (1-tax rate) represents the after tax cost of debt
WACC = 0.2 * 0.16 + 0.8 * 0.185
WACC = 0.18 or 18%
Hewell Co. started 2020 with two assets: Cash of E200,000 (Euros) and Land that originally cost E252,000 when acquired on April 4, 2015. On April 1, 2020, the company rendered services to a customer for E75,000, an amount immediately paid in cash. On October 1, 2020, the company incurred an operating expense of E50,000 that was immediately paid. On October 1, 2020, they also declared and paid a dividend of E100,000 to their parent company. No other transactions occurred during the year, so an average exchange rate is not necessary. Currency exchange rates were as follows:
Exchange Rate Chart
April 4, 2015 §1 = $0.28
January 1, 2018 §1 = $0.29
May 1, 2018 §1 = $0.30
October 1, 2018 §1 = $0.31
December 31, 2018 §1 = $0.35
Assume Boerkian was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2018 and properly label the resulting gain or loss.
Answer:
Please find the complete question and its solution file in the attachment.
Explanation:
Timing of shifts in Boerkian's net money assets
Date Particulars Stickles Exchange Rate Dollars
1-Jan Assets [tex](26000 + 72000)[/tex] [tex]98000 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.29\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 28420[/tex]
1-May Service Revenue [tex]36000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.30\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 10800[/tex]
1-Oct Operating Expenses [tex](22000) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.31\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 6820[/tex]
31-Dec Net Assets [tex]112000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 32400[/tex]
31-Dec Net Assets at Current Exchange Rate on Dec.31 [tex]112000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0.35\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 39200[/tex]
31-Dec Gain[tex](\$39200 - \$32400)[/tex] [tex]6800[/tex]
The profit is $6,800 for the subsidiary. The exchange rate is higher on 31 December.
A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables
Answer:
a. Account Receivables turnover = Sales / Average Account Receivables
Account Receivables turnover = $3,150,000 / $210,000
Account Receivables turnover = 15
b. Number of days sales in receivables = 365 / Account Receivables turnover
Number of days sales in receivables = 365 days / 15
Number of days sales in receivables = 24.33 days
On December 27, 2020, Roberta purchased four tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost $125 and had a fair market value of $25. On the same day as the purchase, Roberta gave the tickets to the minister of her church for personal use by his family. At the time of the gift of the tickets, Roberta pledged $11,050 to the building fund of her church. The pledge was satisfied by a check dated December 31, 2020, but not mailed until January 3, 2021.
a. Presuming Roberta is a cash basis and calendar year taxpayer, she can deduct $_________ for the tickets and $____________ for the pledge as a charitable contribution for 2018.
b. Would the amount of the deduction be any different if Roberta were an accrual basis taxpayer?
Answer:
a. Presuming that Roberta is a cash basis and calendar year taxpayer, how much can she deduct as a charitable contribution for 2020?
Roberta can deduct ($125 x 4) - ($25 x 4) = $500 - $100 = $500. She cannot deduct the check because it was not mailed before December 31.
b. Would the amount of the deduction be any different if Roberta was an accrual basis taxpayer? Explain.
As an accrual taxpayer, she could deduct $500 + $11,050 = $11,550. She had already written the check and the fact that it was mailed on January 3 doesn't make a difference for an accrual taxpayer.
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
A company is trying to estimate the cost of debt for a new project. For their estimate, they will find the yield to maturity on existing company bonds. They have one outstanding bond issue at the moment that will mature in 15.00 years. The bond pays an annual coupon of 9.00%, with a face value of $1,000. The bond currently trades at 92.00% of face value. What is the yield to maturity on the existing debt
Answer:
Yield to maturity =9.9%
Explanation:
The yield to maturity is the return on debt expressed in percentage. It can be used to worked as follows using the formula below
YTM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 9%× 1000 =90 , P- 92×1000= 920, F- 1000
AYM = 90 + (1000-920)/15 ÷ 1/2× (1000+920)
= 95.33 ÷ 960
Yield to maturity =9.9%
Brussels Enterprises issues bonds at par dated January 1, 2020, that have a $2,000,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2023 (assume semiannual interest is already recorded).
Answer:
1. January 1
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
2. June 30
Dr Bond Interest Expense $90,000
Cr Cash $90,000
December 31
Dr Bond Interest Expense $90,000
Cr Cash $90,000
3. December 31
Dr Bonds Payable $2,000,000
Cr Cash $2,000,000
Explanation:
1. Preparation of the journal entry to Record the issuance of bonds for cash on January 1.
January 1
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
(To Record the issuance of bonds for cash )
2. Preparation of the journal entries to Record the first semiannual interest payment and the second semiannual interest payment
June 30
Dr Bond Interest Expense $90,000
Cr Cash $90,000
(9%/2*$2,000,000)
(To Record the first semiannual interest payment)
December 31
Dr Bond Interest Expense $90,000
Cr Cash $90,000
(9%/2*$2,000,0000)
(To Record the second semiannual interest payment)
3. Preparation of the journal entry to Record the maturity of the bonds on December 31, 2023
December 31
Dr Bonds Payable $2,000,000
Cr Cash $2,000,000
(To Record bonds maturity )
When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics.
T OR F
The statement "When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics" is true.
What is graphics?Graphics are visual pictures or designs on a material, such as a wall, canvas, screen, paper, or stone, that inform, explain, or entertain.
In modern use, it refers to a graphical representation of data, such as in design and manufacturing, typesetting and the visual arts, and instructional and recreational software. Computer graphics refers to images created by a computer.
Small claims courts are a simple, informal, and low-cost method for settling matters with claims of $7,000 or less.
It is correct that "when presenting evidence in a Small Claims Court, it is best to avoid introducing photographs or graphics." Therefore, it can be concluded that the above statement is true.
Learn more about the graphics here:
https://brainly.com/question/11764057
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Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion.
When Y = $1,500 billion, AE =
billion.
When Y = $2,000 billion, AE =
billion
When Y = $2.500 billion, AE =
billion.
Answer:
a) When Y = $1,500 billion, AE =$1050 billion
b)When Y = $2,000 billion, AE = $1400 billion
c) When Y = $2.500 billion, AE =$1750 billion
Explanation:
As we know,
Yd = Y- T
Y = national income (or GDP)
T = Tax Revenues = 0.3Y
a) When Y = $1,500 billion, AE = $1,500 -0.3*$1,500 = $1050 billion
b) When Y = $2,000 billion, AE =$2,000 - 0.3*$2,000 = $1400 billion
c) When Y = $2.500 billion, AE = $2.500 - 0.3 * $2.500 = $1750 billion
Assuming the economy to operate in equilibrium, the aggregate expenditure model explains that GDP is equal to the Aggregate expenditure. Therefore, the solutions are:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.What is the aggregate expenditure model?The aggregate expenditure model explains the relationship between GDP and planned spending. The model states that:
[tex]\rm GDP = Planned \:spendings[/tex]
Therefore the Aggregate expenditure for the real GPDs is:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.Learn more about the aggregate expenditure model here:
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Lily Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Lily estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2020 are as follows:
Months Units Sold Units Defective Prior to December 31
November 37,300 746
December 39,300 491
Required:
a. Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,237 warranty claims.
b. Determine the estimated warranty liability at December 31 for the units sold in November and December.
Answer and Explanation:
The computation is shown below:
In November month:
Estimated defective units:
= Estimated Percentage to be defective units × Units sold
= 4% × 37,300
= 1,492
The Estimated cost of repairing defective units is
= Estimated defective units × Estimated cost of repairing the defective unit
= 1,492 × $20
= $29,840
In December month:
Estimated defective units:
= Estimated Percentage to be defective units × Units sold
= 4% × 39,300
= 1,572
The Estimated cost of repairing defective units:
= Estimated defective units × Estimated cost of repairing the defective unit
= 1,572 × $20
= $31,440
Now the Total estimated liability is
= $29,840 + $31,440
= $61,280
The Journal entries are as follows:
(a) Warranty expenses A/c Dr. $61,280
To Estimated warranty payable $61,280
(Being warranty expense is recorded)
Estimated warranty payable A/c Dr. $24,740
To Cash/ Material consume $24,740
(being cash paid is recorded)
(b) The estimated warranty liability is $61,280
