Answer:
d. deduction from stockholders' equity
Explanation:
A treasury stock means the stock that is repurchased by the issued company. That means the shares are purchase bank which ultimately decreaed the outstanding amount of the stock on the open market. Also it contains the debit balance so it should be subtracted from the stockholder equity
Therefore the option d is correct
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,232 kilograms of plastic. The plastic cost the company $14,731. According to the standard cost card, each helmet should require 0.65 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
Bandar Industries Berhad of Malaysia
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets is:
= 2,015
2. The stand materials cost allowed (SQ * SP) is:
= $14,105
3. The materials spending variance is:
= $626 U
4. The materials price variance is:
= $893 F
The materials quantity variance is:
= $1,519 U
Explanation:
a) Data and Calculations:
Number of helmets manufacturing = 3,100
Units of direct materials used = 2,232 kilograms
Actual unit of direct materials used = 0.72 kilograms (2,232/3,100)
Cost of direct materials = $14,731
Unit cost of direct materials = $6.60 ($14,731/2,232)
Standard costs per kilogram = $7.00
Standard units of direct materials = 0.65 kilograms
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets = 2,015 (3,100 * 0.65)
2. The stand materials cost allowed (SQ * SP) = $14,105 (2,015 * $7.00)
3. The materials spending variance = $626 U ($14,731 - $14,105)
4. The materials price variance = standard price - actual price * actual quantity used
= $7.00 - $6.60 * 2,232
= $893 F
The materials quantity variance = standard quantity - actual quantity * standard price
= 2,015 - 2,232 * $7
= $1,519 U
Which of the following statements is false? Question 21 options: Not all economists are agreed as to whether government should bail out companies in financial trouble. Not all economists prefer a rule-based monetary policy to discretionary monetary policy. Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. The tax multiplier is always larger than the government spending mult
Answer:
The tax multiplier is always larger than the government spending multiplier
Explanation:
As we know that
Tax multiplier = mpc ÷ (1 - mpc)
Here mpc means marginal propensity to consume
And,
Government spending multiplier= 1 ÷ (1 - mpc)
So based on this the government spending multiplier should always be more than the tax multiplier
Therefore the last option should be considered
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, _________
A. Mary produces only cakes while Tim produces only pies
B. Mary produces only pies
C. Tim produces both pies and cakes
D. Tim produces only cakes while Mary produces only pies
Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
Acme Air Compressor Company has decided to limit the number of compressors it will supply to some of its distributors that it suspects are selling a line of compressors made by one of its competitors. Acme is using its referent power in its distribution channel.
a. True
b. False
Answer:
b. False
Explanation:
A Referent power in an organization my be defined as the power of a person or a company that is based on high level of identification with that of admiration or inspiration or out of respect.
Thus in the context, the Acme company does not uses its referent power to its distribution channel when the company decides to limit the supply of the its compressors to some of its distributors as the distributors are selling some of the air compressors of the competitor company.
Hence the answer is FALSE.
At the profit-maximizing level of output, the amount by which the firm can mark up price is: Group of answer choices directly related to the price elasticity of demand for item in question. totally unrelated to the price elasticity of demand for item in question. equal to the ratio of the marginal and average costs of production. inversely related to the price elasticity of demand for item in question.
Answer:
inversely related to the price elasticity of demand for item in question.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.
Generally, all businesses and entrepreneurship go into the business of buying and selling or providing services to service takers (consumers) for the sole purpose of making profit and maximizing the profits over time.
At the profit-maximizing level of output, the amount by which a business firm can mark up price is inversely related or proportional to the price elasticity of demand for the item (product) in question. Thus, the amount by which a business firm can mark up price increases as the price elasticity of demand for a item (product) decreases and vice-versa.
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Also, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.
Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of $100,000 and had the following capital transactions to report on their income tax return: Carryover of capital losses from year 13$200,000 Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 1420,000 Gain on the sale of stock purchased 5 years ago and sold on March 14, year 1415,000 Gain on the sale of their personal residence (all qualifications have been met for the maximum allowable gain exclusion)675,000 Loss on the sale of their personal automobile10,000 Gain on the sale of their personal furniture5,000 Loss on the sale of investment property (land only)150,000 What is the amount of capital loss carryover to year 15
Answer:
The amount of capital loss carryover to year 15 is 152,000
Explanation:
The working is attached with the answer please find the attached file.
The following losses cannot be claimed or considered
Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 14Loss on the sale of their personal automobiledifference between white collar job and blue collar job?
Answer:
Kindly check explanation
Explanation:
White and blue collar jobs are usually differentiated in terms of the job setting or environment in which each group of job is undertaken. The white collar jobs are job categories whereby staffs often work in offices such that most of the duties performed are on computers or writing. This may include ; banking, clerical and administrative jobs and other related job fields.
Blue collar jobs in the other hand could be described as being less formal as it Involves most of the business or trade related job types whereby individuals could be seen undergoing laborious jobs. This jobs may be skilled or unskilled and the job types include cost uctjoj workers, artisans, mechanics, electctricians and so on.
Blue collar jobs cannot keep the sort of tidy outlook white collar job do keep due to the nature of their work. Hence, this palys a role in the name given as blue clothes are often more accommodation of dirt or stain than white garments.
Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 30 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (30, 50). Therefore this class could
Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
whole number. a. Before the tax is imposed, the equilibrium price is $ 1.5 per bottle and the equilibrium quantity is 4 billion bottles. b. After the excise tax is imposed, consumers pay a price of $ 2 per bottle.c. After the excise tax is imposed, the price (or amount) producers keep after the tax is paid is $ per bottle.After the tax is imposed, the equilibrium quantity is 3 billion bottles.e. The government is able to collect $ billion of tax revenue from the tax.
Answer: hello your question is poorly structured attached below is the missing graph and missing part of the question
Assume the government imposes a $1.00 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed.
answer :
a) $2 , 4 billion
b) $2.5
c) $1.5
d) 3 billion
e) $3 billion
Explanation:
a) equilibrium price = $2 per bottle
equilibrium quantity = 4 billion bottles
b) After imposition of excise tax
consumers will pay = $2.5
c) The amount producers keep after the imposition of taxes
= $2.5 - tax
= 2.5 - 1 = $1.5
d) New equilibrium quantity ( after tax is imposed )
= 3 billion bottles ( from graph attached ) i.e. intersection of S2 and D
e) Amount of tax revenue collected by the government from the imposition of tax
= quantity of bottles sold * $1
= 3 billion * $1 = $3 billion
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15.55 per pound to produce. Product D would sell for $35.65 per pound and would require an additional cost of $11.65 per pound to produce. What is the differential cost of producing Product D
Answer:
the differential cost is $11.65 per pound
Explanation:
The computation of the differential cost of producing product D is shown below:
Here the differential cost of generating product B should be considered as the additional cost needed to produced i.e. $11.65 per pound
Therefore the differential cost is $11.65 per pound
So, the same should be relevant
Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3
Answer:
6.12units
Explanation:
Calculation to determine what should be the forecast for period 3
First step is to calculate the Forecast for period 2 using this formula
Forecast for period 2 = Alpha * Actual demand for period 1 + (1-alpha) * Forecast for period 1
Let plug in the
Forecast for period 2= 0.2 * 7+ (1-0.2)* 5
Forecast for period 2= 5.4 units
Now let determine the Forecast for period 3
Using this formula
Forecast for period 3 = Alpha* Actual demand for period 2 + (1- alpha) * Forecast for period 2
Let plug in the formula
Forecast for period 3= 0.2 * 9 + (1-0.2)* 5.4
Forecast for period 3=6.12units
Therefore what should be the forecast for period 3 is 6.12 units
Journalise the following transactions of Mr. Aamir Enterprises 4 (i)Mr. Aamirstarted business with Cash ₹60,000.
(ii) Deposited into Bank Rs. 2, 000
(iii). Purchased good for cash Rs. 3, 000
(iv). Building purchased from Hamza Rs. 5, 000.
Answer:
Mr. Aamir Enterprises
Journal Entries:
(i) Debit Cash Rs. 60,000
Credit Capital, Mr. AamirRs. 60,000
To record the amount invested in the enterprise.
(ii) Debit Bank Rs. 2,000
Credit Cash Rs. 2,000
To record amount deposited into the bank.
(iii). Debit Inventory Rs. 3,000
Credit Cash Rs. 3,000
To record the purchase of goods for cash.
(iv). Debit Building Rs. 5,000
Credit Cash Rs. 5,000
To record the purchase of building from Hamza, assumed to be for cash.
Explanation:
a) Data and Analysis:
(i) Cash Rs. 60,000 Capital, Mr. AamirRs. 60,000
(ii) Bank Rs. 2,000 Cash Rs. 2,000
(iii). Inventory Rs. 3,000 Cash Rs. 3,000
(iv). Building Rs. 5,000 Cash Rs. 5,000
Question 12
1 points
Save Answer
An example of Impulse decision making is
consumers who repeatedly use the services
of the same travel agent or website to book
their airline tickets.
True
False
Question 12 of 30
Moving to the next question prevents changes to this
answer.
Answer:
hello brothers and sisters of United States
I’ll give 20 points to the best answer !!!
Answer:
The answer is "Slide Master View"
Explanation:
Slide Master Look is indeed the name of this feature. This can help you keep track of all the presentations you've created and change those ones that require work or even more information. The additional feature is the ability to change the presentation's actual picture, as it may be extended to all slides. Slide master view also allows you to change the text format & placeholders.
Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $10,000 working at other occupations. Refer to Scenario 13-21. What is the economic profit for the family farm
Answer:
0
Explanation:
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
accounting profit = revenue - explicit cost
Explicit cost includes the amount expended in running the business.
100,000 - (25,000 + 40,000 + 25,000) = 10,000
economic profit = 10,000 - 10,000 = 0
An individual has $30,000 invested in a stock with a beta of 0.7 and another $70,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
Answer:
1.05
Explanation:
Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock
total value of the portfolio = $30,000 + $70,000 = $100,000
percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30
percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70
weighted beta of stock A = 0.30 x 0.7 = 0.21
weighted beta of stock B = 0.70 x 1.2 = 0.84
Portfolio beta = 0.21 + 0.84 = 1.05
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Please use the high-low method to calculate the variable cost per inspection.
Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
To calculate the variable cost under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
Differentiate between an active partner and sleeping partner?
What would happen to GDP if the government hired unemployed workers who had been receiving an amount $0.5 TR in unemployment benefits, as government employees and now paid them $1 TR
Answer:
GDP will increase by $1 TR.
Explanation:
If the government is giving an amount to the unemployed worker then it will not account for the GDP because GDP calculation does not account the government transfers. Moreover, when the government hires them and paid them $1 TR. Thus this will consider as salary and salary is included in the GDP. Therefore, GDP will increase by $1TR.
A reasonable amount of uncollectible accounts is evidence Group of answer choices that the credit policy is too strict. that the credit policy is too lenient. of a sound credit policy. of poor judgments on the part of the credit manager.
Answer:
. of a sound credit policy.
Explanation:
credit policy can be regarded as set of guidelines which is sets as terms for credit and payment for customers, It establishes clear course of action as regards late payments, it also Set term of payment for parties to whom credit is been extended. It also define that is required to be set as regards outstanding credit accounts.
The elements of credit policy of a firms are;
✓collection policy
✓ credit period
✓credit standards
✓discounts
It should be noted that A reasonable amount of uncollectible accounts is evidence of a sound credit policy.
On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firm’s maximum 2012 deduction for depreciation?
Answer:
Calendar-Year Firm
The firm’s maximum 2012 deduction for depreciation is:
= $917.
Explanation:
a) Data and Calculations:
Purchase of a used computer server on May 11, 2012 = $6,000
Since the server is a used one, we assume a four-year useful life
Salvage value = $500
Assumed useful life = 4 years
Depreciable amount = $5,500 ($6,000 - $500)
Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:
Annual depreciation expense, using the straight-line method = $1,375
For 2012, the firm's maximum deduction for depreciation will be:
= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)
Camille Noah is investing $5,000 in an account that pays an annually compounded rate of 6.75 percent for three years. What is the interest on interest if interest is compounded
Answer:
$69.88
Explanation:
Calculation to determine the interest on interest if interest is compounded
First step is to calculate Simple interest per year
Deposit today represent PV = $5,000
Interest rate represent i = 6.75%
No. of years represent n = 3
Simple interest per year = $5,000 × (0.0675)
Simple interest per year= $337.50
Second step is to calculate the Simple interest for 3 years
Simple interest for 3 years = $337.50 × 3
Simple interest for 3 years= $1,012.50
Fourth step is to calculate the Future value with compound interest (FV3)
FV3 = $5,000 (1 + 0.0675)^3
FV3=$5,000+(1.0675)^3
FV3= $6,082.38
Now let determine the Interest on interest
Interest on interest = $6,082.38 - $5,000 - $1,012.50
Interest on interest = $69.88
Therefore the interest on interest if interest is compounded is $69.88
At the beginning of the year, Crane Company estimates annual overhead costs to be $2400000 and that 400000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 375000 hours is
Answer:
the amount of overhead applied during the year is $2,250,000
Explanation:
The computation of the overhead applied is shown below;
= Estimated annual overhead ÷ machine hours × actual machine hours
= $2,400,000 ÷ 400,000 machine hours × 375,000 hours
= $2,250,000
hence, the amount of overhead applied during the year is $2,250,000
The net asset value of shares in a closed-end investment company is $36. An investor buys the shares for $34 in the secondary market. The company distributes $1 and after one year, the net asset rises to $42. The investor sells the shares for $43 in the secondary market. What is the percentage return on the investment
Answer:
Closed-End Investment Company
The percentage return on the investment is:
= = 29.41%
Explanation:
a) Data and Calculations:
Net asset value of share = $36
Price paid by an investor = $34
Dividend distributed = $1
Net asset value after one year = $42
Selling price in the secondary market by the investor = $43
Total amount realized by the investor = $44 ($43 + $1)
Cost of investment = $34
Dollar return on the investment = $10 ($44 - $34)
Percentage return on the investment = Return on investment/Cost of investment * 100
= $10/$34 * 100
= 29.41%
Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.)
Answer and Explanation:
The adjusting entry is shown below:
Insurance Expense ($5,280 × 3 months ÷ 12 months) $1,320
To Prepaid Insurance $1,320
(being the insurance expense is recorded)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
dentify the statement below that is incorrect. Multiple Choice The normal balance of accounts receivable is a debit. The normal balance of dividends is a debit. The normal balance of unearned revenues is a credit. The normal balance of an expense account is a credit. The normal balance of the common stock account is a credit.
Answer: The normal balance of the common stock account is a credit.
Explanation:
Based on the information given, the correct statements are:
• The normal balance of accounts receivable is a debit.
• The normal balance of dividends is a debit.
• The normal balance of unearned revenues is a credit.
It should be noted that the statement that "The normal balance of an expense account is a credit" is incorrect. The normal balance of the common stock account is not a credit but rather a debit.
During a recent fiscal year, Creek Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been:
Answer:
475,000
Explanation:
Hey there! For this question, we will be using the COGS and SG&A formulas.
Basic Formula: Revenue - COGS - SG&A = Pretax profits
How do you calculate the SG&A?
Well, SG & A = (Contribution - Prextax income)
SG & A = ($400,000 - $125,000)
SG & A= $275,000
What's next?
Now, you must calculate for revenue.
Contribution margin/Revenue = Contribution Margin Ratio
Revenue = Contribution Margin/Contribution Margin Ratio
Revenue = $400,000/.25
Revenue = $1.1m
Now, let's use the COGS formula.
COGS: Starting inventory + purchases - ending inventory = cost of goods sold
Revenue - COGS - SG&A = Pretax profits
1.1m - COGS - 400k = 125k
COGS = $1.1m - $125k - $400k
Final answer: 1.100 Million (1,000,000)
Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,120. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment
Answer:
8.63%
Explanation:
The expected rate of return on the bond can be determined using a financial calculator bearing in mind that the calculator would be set to its end date before making the following inputs:
N=17(number of annual coupons in 17 years)
PMT=100(annual coupon=face value*coupon rate=$1000*10%=$100)
PV=-1120(the current price is $1,120)
FV=1000(the face value of the bon is $1000)
CPT
I/Y=8.63%
EXCEL APPROACH:
=rate(nper,pmt,-pv,fv)
nper=N=17
=rate(17,100,-1120,1000)
rate=8.63%
A friend has $1,400 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.90% interest or to lend it to Victor. Victor has promised to repay $1,470 after six months.
Required:
a. Calculate the interest earned on the savings account for six months.
b. Calculate the rate of return if the money is lent to Simone. Round your percentage answer to two decimal places.
c. Which alternative would you recommend? Explain your answer.
Answer:
a. The interest earned on the savings account for six months is:
= $41.30
b. The rate of return if the money is lent to Victor is:
= 10%
c. Based on the calculations alone, lending the $1,400 to Victor is better than saving in the bank, provided that there is no risk of default on the part of Victor.
Explanation:
a) Data and Calculations:
Savings from part-time job = $1,400
Interest rate in a bank savings account = 5.90%
Period of savings in the bank = 6 months
Future value of the $1,400 savings = $1,441.30
Victor repayment if $1,400 was instead lent to him = $1,470
From a financial calculator, the future value of $1,400 at 5.9% after six months is $1,441.30
Loan Amount 1400
Loan Term 0 years 6 months
Interest Rate 5.9
Compound Semi-annually
Pay Back 6 Months after
Results:
Payment Every 6 Months = $1,441.30
Total of 1 Payments = $1,441.30
Total Interest = $41.30
Interest paid by Victor = $70 ($1,470 - $1,400)
This translates to 5% for six months and 10% for 1 year
5% = ($70/$1,400 * 100)
The operating income calculated using variable costing and absorption costing amounts to $9,100 and $11,200. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.
Answer:
$2,100
Explanation:
The difference between variable costing income and absorption costing income arises due to fixed cost deferred in inventory. This is the total fixed manufacturing overhead that will be expensed under absorption costing.
Calculation :
Fixed Cost in Inventory = $11,200 - $9,100
= $2,100
