Answer:
Allocated MOH= $768
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (555,000/74,000) + 2.1
Predetermined manufacturing overhead rate= $9.6 per machine hour
Now, we can allocate overhead to Job A496:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.6*80
Allocated MOH= $768
Company C had the following investment. Help them determine the financial statement implications of the investment. Tax rate 21% Estimated tax payment 21,000 Investment cost and ending fair values for 20X1 and 20X2: 20X1 20X2 Cost 100,000 100,000 Fair value 110,000 134,000 Total gain 10,000 34,000 20X1 income statement information: Sales 1,670,200 Expenses 1,536,600 Assuming the investement is short-term, what is the ending balance of taxes payable on the 20X1 balance sheet?
Answer:
$9,156
Explanation:
Income = (Sales-expenses) + $10,000
Income = ($1,670,200 - $1,536,600) + $10,000
Total income = $143,600
Tax = Income * Tax Rate = $143,600 * 0.21 = $30,156
Now, total taxes payable is $30,156,but they estimated that payment to be $21,000, So company C has reserved $21,000 for future tax payments
So, Net deferred tax payable = $30,156 - $21,000 = $9,156. Therefore, ending balance of taxes payable on the 20X1 balance sheet is $9,156.
The essential characteristics of financial statement fraud are: The misstatement is material and intentional and the users of the financial statements are investors in publicly traded companies. This misstatement is material and intentional and the preparers of the financial statements have a fiduciary obligation to the organization. The misstatement is material and intentional and the preparers of the financial statements fail to report the misstatement to the SEC or other applicable authority. The misstatement is material and intentional and the users of the financial statements have been misled.
Answer:
The misstatement is material and intentional and the users of the financial statements have been misled.
Explanation:
Financial statement fraud is defined as the intentional misstatement or ommision of information on the financial statement that is aimed at deceiving users of financial statement.
When a fraud is perpetrated the act is an intentional attempt to misrepresent a situation to illegally gain something that is not legally yours.
For example financial statement fraud can be done to obtain a loan or inflate the price of company shares.
Usually profits, assets, and revenue are overstated. While liabilities, expenses, and losses are understated
In 2018, internal auditors discovered that Fay, Inc., had debited an expense account for the $4,600,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be 20 years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of:_____.
Answer:
$230,000
Explanation:
Depreciation Charge (Straight line) = (Cost - Residual Value) ÷ Estimated Useful Life
therefore,
2018 Depreciation Charge = ($4,600,000 - $ 0) ÷ 20
= $230,000
The journal entry to correct the error will include a credit to accumulated depreciation of $230,000
Over the past decade, many American candy companies have opened factories in Mexico and Canada to produce candy. The companies, including Hershey Company, Brach's Confections, and Ferrara Pan, then ship candy back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages. Price floors (price supports) for the sugar industry encouraged American candy companies to move production out of the United States. Describe how the enactment of a sugar price floor impacted the market for candy in the United States, resulting in the movement of manufacturing.
Answer:
The sugar industry in the US is very powerful and has been able to establish trade barriers and import quotas that affect domestic prices. Sugar prices in the US are extremely high compared to prices in any other country, including Canada, Mexico, China, European nation, i.e. American sugar is the most expensive in the world.
Besides imposing trade barriers, the government also imposes a binding price floor. Binding price floors always result in deadweight losses since the quantity demanded is lower than equilibrium. This is why American candy manufacturers move their production overseas. the highest cost in the candy industry is actually sugar, and wherever they decide to relocate their factories it will always be cheaper.
Use the following bond quotes to answer this question:
Company Coupon Maturity High Low Last Change Yield
Talliru Co 7.60 Nov 2012 100.05 99.68 99.89 0.02
Zeus 8.25 Apr 2016 102.41 101.87 102.03 -0.10
The Zeus Company bond pays interest semi-annually. You own six of these bonds. What is the amount you will receive as your next interest payment?
A. $247.50
B. $76.00
C. $228.00
D. $304.00
E. S190.00
Answer:
a. $247.50
Explanation:
As bonds are semi annual, every 6 months interest payment will be mad
Face value = 1000
Coupon rate = 8.25%
Number of bonds = 6
Interest payment = 1000 * 8.25% * (6/12) * 6
Interest payment = $247.50
So, the amount i will receive as the next interest payment is $247.50.
During 2020, Starnes Corporation developed a patent. Starnes incurred the following costs related to the development of the patent: tests to perfect the use of the patent for production processes, $9,600; research costs in the research laboratory, $33,600; and depreciation on equipment (that has alternative future uses) used in developing the patent, $6,400. In addition, in late December 2020, the company incurred legal fees for the patent registration, $11,200. The expected life of the patent is 20 years. On September 30, 2021, Starnes Corporation defended its patent in court after incurring legal fees of $4,800. The total estimated life of the patent at that time was adjusted to 15 years remaining from September 30, 2021.
Record journal entries for the following items.
a. Patent development and registration costs incurred in 2020.
b. Legal fees paid in 2021.
c. Amortization expense in 2021.
d. Amortization expense in 2022c. Amortization expense in 2021.
Answer:
a. Patent development and registration costs incurred in 2020.
Dr Patent 11,200 (only patent registration fees)
Dr Research and development expense 49,600
Cr Accumulated depreciation 6,400
Cr Cash 54,400
b. Legal fees paid in 2021.
Dr Patent 4,800
Cr Cash 4,800
c. Amortization expense in 2021.
Dr Amortization expense 607.50
Cr Patent 607.50
($11,200/20 x 9/12) + ($15,000/20 x 3/12) = $607.50
d. Amortization expense in 2022
Dr Amortization expense 750
Cr Patent 750
a. Patent development and registration costs incurred in 2020.
Dr Patent 11,200
Dr Research and development expense 49,600
Cr Accumulated depreciation 6,400
Cr Cash 54,400
b. Legal fees paid in 2021.
Dr Patent 4,800
Cr Cash 4,800
c. Amortization expense in 2021.
Dr Amortization expense 607.50
Cr Patent 607.50 ($11,200/20 x 9/12) + ($15,000/20 x 3/12)
d. Amortization expense in 2022
Dr Amortization expense 750
Cr Patent 750
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The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received a $9,000 cash contribution from the owner. Mar. 2 Paid the first month's rent of $600. Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $600 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the balance in Accounts Receivable
Answer:
$2,000
Explanation:
Calculation for What is the balance in Accounts Receivable
Credit sales $10,000
Less : Collection ($8,000)
Account receivable $2,000
Therefore the balance in Accounts Receivable will be $2,000
An analysis of the company's insurance policies provided the following facts.
Policy Date of Purchase Months of Coverage Cost
A April 1, 2017 24 $10,824
B April 1, 2018 36 9,576
C August 1, 2019 12 8,424
The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)
Required:
So what would my adjusting journal entry be?
Answer:
Adjusting Journal in the year of payment:
December, 2017: Policy A
Debit Insurance Expense $4,059
Credit Prepaid Insurance $4,059
To record the insurance expense for the year (9 months).
December, 2018: Policy A and B
Policy A:
Debit Insurance Expense $5,412
Credit Prepaid Insurance $5,412
To record insurance expense for the year, 12 months.
Policy B:
Debit Insurance Expense $2,394
Credit Prepaid Insurance $2,394
To record insurance expense for the year, 9 months.
December, 2019:
Policy A:
Debit Insurance Expense $1,353
Credit Prepaid Insurance $1,353
To record insurance expense for the year, 3 months.
Policy B:
Debit Insurance Expense $3,192
Credit Prepaid Insurance $3,192
To record insurance expense for the year, 12 months.
Policy C:
Debit Insurance Expense $3,510
Credit Prepaid Insurance $3,510
To record insurance expense for the year, 5 months.
Explanation:
a) Data and Calculations:
Policy Date of Purchase Months of Cost Monthly
Coverage Cost
A April 1, 2017 24 $10,824 $451 ($10,824/24)
B April 1, 2018 36 9,576 $266 ($9,576/36)
C August 1, 2019 12 8,424 $702 ($8,424/12)
b) The insurance expenses recorded under the three policies have been determined using the monthly rates. In each year, the months covered are taken into consideration when computing the insurance expense for the year. In this way, only the expenses incurred for the period are accounted for, in accordance with the accrual concept of accounting.
Thompson Refrigerators Inc. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Month Total Overhead Machine Hours Jan. $8,258 2,134 Feb. 8,006 2,045 Mar. 8,387 2,276 Apr. 8,832 2,743 May 8,921 2,834 June 7,841 2,034 Using the high-low method, total monthly fixed overhead cost is calculated to be:
Answer:
$5,095.10
Explanation:
The computation of the total monthly fixed overhead cost using the high-low method is given below:
But before that the variable cost per unit is
Variable cost per unit is
= [Total cost at highest level - Total cost at lowest level] ÷ [Highest level - Lowest level]
= ($8,921 - $7,841) ÷ (2,834 - 2,034)
= $1.35
Now
The total fixed cost for the month is
= $8921 - (1.35 × 2,834)
= $5,095.10
Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, arere summarized as follows:
Total Assets Total Liabilities
Beginning of the year $1,220,000 $990,000
End of the year 1,730,000 1,150,000
On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (First determine the amount of increase or decrease in stockholders' equity during the year).
Amber: No additional common stock was issued and no dividends were paid.
Blue: No additional common stock was issued, but dividends of $60,000 were paid.
Coral: Additional common stock of $140,000 was issued, but no dividends were paid.
Daffodil: Additional common stock of $140,000 was issued and dividends of $60,000 were paid.
Answer:
Amber
Change in stockholders' equity = $580,000 - $230,000 = $350,000
No additional shares issued, so net income = $350,000
Blue
Change in stockholders' equity = $580,000 - $230,000 = $350,000
No additional shares issued, but dividends paid for $60,000, so net income = $410,000
Coral
Change in stockholders' equity = $580,000 - $230,000 = $350,000
Additional shares issued for $140,000, so net income = $210,000
Daffodil
Change in stockholders' equity = $580,000 - $230,000 = $350,000
Additional shares issued for $140,000, dividends paid for $60,000, so net income = $270,000
Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan. He receives $150,000 annually, paid semimonthly, in base salary plus 25 shares of the firm's stock per month. The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share. What is Lloyd's gross pay for mid-October
Answer:
Lloyd
Gross pay for mid-October is $6,250.
Explanation:
a) Data and Calculations:
Annual base salary = $150,000
Bi-weekly base salary = $6,250 ($150,000/24)
ISO = 25 shares per month valued at $52.50 per share = $1,312.50
Bi-weekly ISO = $656.25 ($1,212.50/2)
Option exercise price = $0.10 per share
b) ISOs mean incentive stock options, which are performance-based compensations to company executives in the form of shares.
c) The calculation of the mid-October gross pay is based on the division of Lloyd's annual base salary by 12 months * 2 (24 mid-months).
The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable $42,770
Accounts Receivable 116,900
Cash ?
Elaine Wells, Capital 75,000
Elaine Wells, Drawing 24,000
Fees Earned 745,230
Insurance Expense 3,600
Land 50,000
Miscellaneous Expense 9,500
Notes Payable 50,000
Prepaid Insurance 21,600
Rent Expense 48,000
Supplies 4,275
Supplies Expense 6,255
Unearned Rent 12,000
Utilities Expense 26,850
Wages Expense 580,700
Prepare an unadjusted trial balance.
Answer:
Hickory Furniture Company
Unadjusted Trial Balance
As of December 31, 2019
Accounts Title Debit Credit
Accounts Payable $42,770
Accounts Receivable $116,900
Cash 33,320
Elaine Wells, Capital 75,000
Elaine Wells, Drawing 24,000
Fees Earned 745,230
Insurance Expense 3,600
Land 50,000
Miscellaneous Expense 9,500
Notes Payable 50,000
Prepaid Insurance 21,600
Rent Expense 48,000
Supplies 4,275
Supplies Expense 6,255
Unearned Rent 12,000
Utilities Expense 26,850
Wages Expense 580,700
Totals $925,000 $925,000
Explanation:
a) Data and Calculations:
Accounts Title Debit Credit
Accounts Payable $42,770
Accounts Receivable $116,900
Cash ?
Elaine Wells, Capital 75,000
Elaine Wells, Drawing 24,000
Fees Earned 745,230
Insurance Expense 3,600
Land 50,000
Miscellaneous Expense 9,500
Notes Payable 50,000
Prepaid Insurance 21,600
Rent Expense 48,000
Supplies 4,275
Supplies Expense 6,255
Unearned Rent 12,000
Utilities Expense 26,850
Wages Expense 580,700
Totals $891,680 $925,000
Cash = $925,000 - $891,680 = $33,320
b) The unadjusted Trial Balance lists the general ledger account balances of Hickory Furniture Company before the adjustment of accounts. It is the first trial balance that is prepared.
Lofty Inc. is considering investing in a game which can provide the corporation with the following returns as the outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return for this investment.
Answer: 16.82%
Explanation:
The expected return of an investment is a weighted average of the different returns given the probabilities that certain states occur in the economy.
=( 18% * 20%) + (42% * 16%) + (30% * 3%) + (10% * -25%)
= 0.036 + 0.0672 + 0.009 - 0.025
= 0.1682
= 16.82%
predetermined overhead rate includes: Multiple Choice estimated total manufacturing overhead cost in the numerator. only the fixed portion of the estimated manufacturing overhead cost in the numerator. only the variable portion of the estimated manufacturing overhead cost in the numerator. estimated total manufacturing overhead cost in the denominator.
Answer:
estimated total manufacturing overhead cost in the numerator.
Explanation:
Predetermined overhead rate is calculated to apply manufacturing overhead to products. It is usually calculated before production begins. Using estimated overhead cost and the estimated allocation base
The formula is:
Predetermined over head rate = (estimated total manufacturing overhead cost) ÷ (estimated total amount of the allocation base)
The allocation base are the units that are considered in calculating predetermined overhead rate. For example labour hours can be used, machine hours, and direct materials
L. Lyons started a business, called Lyons Share, by investing $4,000 for stock. Illustrate how to record the transaction in Lyons Share's T-accounts by completing the following sentence. The Cash account would be blank input field 1_(debited/credited) on the blank input field 2(left/right) side of the T-account and the Common Stock account would be blank input field 3(debited/credited) on the blank input field 4 (left/right) side of the T-account. (Enter one word per blank.)
Answer:
Dr Cash Account (Left side)
Cr Common stock (Credit side)
Explanation:
Preparation of entry to Illustrate how to record the transaction in Lyons Share's T-accounts
Based on the information given how to record the transaction in Lyons Share's T-accounts will be :
The CASH ACCCOUNT would be DEBITED on the LEFT SIDE of the T-account reason been that debit side is often on the left hand side and Secondly the amount of 4,000 was the cash that was Invested for stock which is why cash Account will be debited.
COMMON STOCK account would be CREDITED on the RIGHT SIDE of the T-account reason been that the amount of 4,000 was Invested for stock which is why comm stock account will be credited.
Therefore entry to Illustrate how to record the transaction in Lyons Share's T-accounts will be:
Dr Cash Account (Left side)
Cr Common stock (Credit side)
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials $150,000 Direct labor 50,000 Variable overhead 30,000 Fixed overhead 220,000 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per unit. $fill in the blank 1 per unit
Answer:
1. $3,600
2. $6,100
3. $4,100
4. $8,500
5. Variable units costs stay the same. Fixed overheads are already incurred so they are not affected. So Variable Costs vary with the number of additional units produced that is 5,000 units. Product Cost = $8,500
Explanation:
Hi, I have attached the full question as pdf below !
Prime Cost is the total of direct materials and direct labor.
Conversion Costs is the total of direct labor and overhead costs.
Variable Costs is the total of direct labor, direct materials and variable overheads.
Total Product Cost is the Sum of all Manufacturing Costs
MM Proposition I with corporate taxes states that:
I. capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield;
II. by raising the debt-to-equity ratio, the firm can lower its taxes and thereby increase its total value;
III. firm value is maximized by using an all-equity capital structure
a. I only
b. II only
c. III only
d. I and II
Answer:
d.) I and II
Explanation:
The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.
Following are transactions for Valdez Services, a company owned by Brina Valdez. Brina Valdez invested $27,300 cash in the company in exchange for common stock. The company provided services to a client and immediately received $840 cash. The company received $13,700 cash from a client in advance for services to be provided next year. The company received $2,100 cash from a client in partial payment of accounts receivable. 1. Prepare general journal entries for the above transactions of Valdez Services. 2. Listed below are three reasons why a transaction would not yield a revenue. Match each of the reasons to the transaction it properly describes.
Answer:
No General Journal Debit Credit
1. Cash $27,300
Capital, Brina Valdez $27,300
(To record investment)
2. Cash $840
Service revenue $840
(To record service revenue)
3. Cash $13,700
Unearned service revenue $13,700
(To record unearned service revenue)
4 Cash $2,100
Accounts receivable $2,100
(To record cash collection from accounts receivable)
2.
The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
Total fixed cost element = $90000
Explanation:
To calculate the fixed maintenance cost, first we will use the high-low method to calculate the element of average variable maintenance cost per machine hour in the average total maintenance cost.
The value of highest activity = 24000 * 9.75 = $234000
The value of lowest activity = 20000 * 10.5 = $210000
Average VC per MH = (234000 - 210000) / (24000 - 20000)
Average VC per MH = $6 per machine hour
Total Average variable cost (24000 MH) = 6 * 24000 = $144000
Total fixed cost element = 234000 - 144000 = $90000
Green Valley Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%. If the U.S. has a bilateral trade agreement with the host country that calls for the total tax paid to be equal to the maximum amount that could be paid in the highest taxing country, what is the total amount of income taxes Green Valley Exporters will pay to the host country, and how much will they pay in U.S income taxes on the foreign earned income
Answer:
Amount paid in host country will be = Income * Tax rate in host country = $100,000*25% = $25,000
Amount paid in US will be Income * Tax rate in US - Tax paid in host country (Since the tax rate in host country is lower than USA) = $100,000*35% - $25,000 = $35,000 - $25,000 = $10,000
Martha is a regional supervisor who earns a base salary of $34,400 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semi monthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $38,200 in contract sales for the third quarter. What will be her gross pay on her next pay date
Answer:
Martha gross pay on her next pay date is $1,815.33.
Explanation:
This can be calculated as follows:
Number of semi months in a year = 24
Semi monthly salary = Salary per year / Number of semi months in a year = $34,400 / 24 = $1,433.33
Commission from contract sales for the third quarter = Contract sales for the third quarter * Commission percentage = $38,200 * 1% = $382
Martha gross pay on her next pay date = Semi monthly salary + Commission from contract sales for the third quarter = $1,433.33 + $382 = $1,815.33
Therefore, Martha gross pay on her next pay date is $1,815.33.
Equipment with a book value of $83,500 and an original cost of $162,000 was sold at a loss of $32,000. Paid $106,000 cash for a new truck. Sold land costing $320,000 for $400,000 cash, yielding a gain of $80,000. Long-term investments in stock were sold for $91,400 cash, yielding a gain of $16,250. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net cash flow from investing activities $417,400
Explanation:
The computation of cash flow from investing activity is given below:
Cash flow from investing activities
Add: Equipment sold ($83,500 - $32,000) $51,500
(Book value - loss )
Less : Acquisition of new truck -$106,000
Add : Land sold $400,000
Add : Long term investment sold $91,400
Net cash flow from investing activities $417,400
Two different suppliers are competing to supply a particular part for a new Boeing airliner. The Japanese supplier charges J(n) dollars for n parts whereas the Italian supplier charges I(n) dollars for n parts. (a) Which supplier should be used to supply a large number of parts if
Answer:
Italian Supplier will be chosen to supply a Large number of parts.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. However I have found the missing part of this question and will be using that to solve for the sake of understanding and concept.
Data Missing:
Which supplier should be used to supply a large number of parts if:
Lim (n--> infinity) [tex]\frac{J(n)}{I(n)} = 0?[/tex] Now, this condition was missing in the question, now we can solve this question.
Solution:
Here, we can see that, the limit of function is approaching to infinity, which indicates (n--> infinity) we want to make larger number of parts. So, we also know that Limit value of this function = 0.
It means that, numerator must be smallest and the denominator must be largest to get the value = 0. And, here denominator = I(n) means Italian Supplier.
Otherwise, if we put larger values of numerator then, it is not possible to get the value of 0.
So, if we choose Italian supplier for a large number of parts, then the value of the Limit Function will be zero for it is approaching infinity.
Hence,
Italian Supplier will be chosen to supply a Large number of parts.
Determine the taxable amount of social security benefits for the following situations. If an amount is zero, enter "$0".
a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $36,000, no tax-exempt interest, and $12,400 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
b. Assume Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest, and $16,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
c. Assume Erwin and Eleanor have adjusted gross income of $85,000, no tax-exempt interest, and $15,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
Answer:
a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $36,000, no tax-exempt interest, and $12,400 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
Since their income is between $32,000 to $44,000, they have to pay income for 50% of their social security benefits = $12,400 x 50% = $6,200b. Assume Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest, and $16,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
Since their income is below $32,000, their social security benefits will not be taxed.c. Assume Erwin and Eleanor have adjusted gross income of $85,000, no tax-exempt interest, and $15,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
Since their income is higher than $44,000, they have to pay income for 85% of their social security benefits = $15,000 x 85% = $12,750
Alexa and Maya, married and filing joint income tax returns, derive their entire income from the operation of their retail candy shop. Their 2019 adjusted gross income was $50,000. They itemize their deductions on Schedule-A for 2019. The following unreimbursed cash expenditures were among those made by them during 2019: State income tax $1,200 Self-employment tax $7,650 What amount should they deduct for taxes on Schedule-A for 2019
Answer:
Alexa and Maya
The amount that they should deduct for taxes on Schedule A for 2019 is:
= $5,025.
Explanation:
a) Data and Calculations:
Adjusted gross income = $50,000
State income tax = $1,200
Self-employment tax = $7,650
Amount they should deduct for taxes on Schedule A for 2019:
State income tax = $1,200
50% of Self-employment tax = $3,825 ($7,650 * 50%)
Total = $5,025
b) Taxpayers who itemize deductions on their federal income tax returns can deduct 50% of self-employment tax and 100% of state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. Note that state and local taxes have been deductible since the inception of the federal income tax in 1913.
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.95 and $2.90, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 5,000 Started and completed during the period 63,000 63,000 Transferred out of Filling (completed) 63,000 68,000 Inventory in process, end of period 4,000 1,200 Total units to be assigned costs 67,000 69,200 The beginning work in process inventory had a cost of $3,250. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.
Answer:
Cost of completed and transferred-out production = $260,300Cost of Ending inventory = $7,280Explanation:
Costs per equivalent unit of direct materials and conversion are $0.95 and $2.90, respectively.
Cost of completed and transferred-out production:
Units Transferred out of Filling (completed):
Direct materials = 63,000
Conversion = 68,000
= Cost of completed and transferred materials + cost of conversion and transferred + beginning inventory
= (63,000 * 0.95) + (68,000 * 2.90) + 3,250
= 59,850 + 197,200 + 3,250
= $260,300
Cost of Ending inventory:
Inventory in process, end of period
Direct materials = 4,000
Conversion = 1,200
= (4,000 * 0.95) + (1,200 * 2.90)
= $7,280
Which of the following is an example of Brazil undertaking importing?
a.Brazil buys made-in-China products to sell in its domestic market.
b.China buys raw materials such as iron ore from Brazil.
c.Brazilian companies invest heavily in the housing industry in the country.
d.Chinese companies invest in Brazilian industry.
A good example of Brazil undertaking importation is A. Brazil buys made-in-China products.
The products are made in China and imported into Brazil by businesses, institutions, and individuals resident in Brazil.
Importation does not involve the following options:
Option b, whereby "China buys raw materials such as iron ore from Brazil." For Brazil, this is an export. Option c, whereby "Brazilian companies invest heavily in the housing industry in the country." This is domestic investment for Brazil. Option d, whereby "Chinese companies invest in Brazilian industry." This is known Foreign Direct Investment (FDI).Thus, when Brazilian persons import products and services from another country, they are classified as imports and not exports or domestic investments.
Learn more about imports and exports at https://brainly.com/question/19951960
b. Which of the following combinations of fishing lures and duck decoys is unobtainable to Mountain Mack in one week's worth of carving? multiple choice 1 10 fishing lures and 40 duck decoys 20 fishing lures and 10 duck decoys 40 fishing lures and 0 duck decoys 16 fishing lures and 30 duck decoys c. Which of the following combinations of fishing lures and duck decoys is an efficient combination? multiple choice 2 16 fishing lures and 30 duck decoys 10 fishing lures and 40 duck decoys 50 fishing lures and 0 duck decoys 20 fishing lures and 10 duck decoys
Question Completion:
Production Possibilities Frontiers
Duck decoys Fishing lures
0 120
6 100
12 80
18 60
24 40
30 20
36 0
Answer:
Mountain Mach
Production Possibilities Frontiers:
1. The combinations of fishing lures and duck decoys that is unobtainable to Mountain Mach is:
10 fishing lures and 40 duck decoys
2. The combinations of fishing lures and duck decoys that is an efficient combination for Mountain Mach is:
16 fishing lures and 30 duck decoys
Explanation:
Mountain Mack's Production Possibilities Frontier (PPF) is a graphical illustration of the production possibilities of carving duck decoys and fishing lures with fixed resources. The PPF indicates the information about the tradeoff between devoting resources to carving duck decoys versus carving fishing lures. It shows that there is an opportunity cost if Mountain Mack chooses to produce more duck decoys than fishing lures and vice versa. With PPF, Mountain Mack is able to make efficient decisions by determining the best combination of goods and allocating resources accordingly.
On January 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the office building on January 1. The following expenditures were incurred for construction: Date Expenditures January 1, 2020 $ 1780000 April 1, 2020 2530000 May 1, 2020 4490000 June 1, 2020 4720000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3650000 was borrowed on January 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1400000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted-average accumulated expenditures for the construction project are $4300000. The amount of interest cost to be capitalized during 2020 is
Answer:
Sunland Company
The amount of interest cost to be capitalized during 2020 is:
= $948,000.
Explanation:
a) Data and Calculations:
Cost of purchased land = $2,680,000
Construction expenditures:
Date Expenditures:
January 1, 2020 $ 1,780,000
April 1, 2020 2,530,000
May 1, 2020 4,490,000
June 1, 2020 4,720,000
Total expenditure $13,520,000
Weighted-average accumulated expenditures = $4,300,000
Debts:
January 1, 2020, 9%, 3-year note payable = $3,650,000
January 1, 2020, 12%, 6-year note payable balance = $1,400,000
Interests capitalization:
Weighted-average accumulated expenditures = $451,500 ($4,300,000 * 10.5%)
3-year note payable = $328,500 ($3,650,000 * 9%)
6-year note payable balance = $168,000 ($1,400,000 * 12%)
Total interest to be capitalized = $948,000
Michael won the Powerball jackpot of 57 million dollars. He has two options to collect the cash: (a) 30-year annuities (first payment one year from today) which future value equates the jackpot amount given that the prevailing interest rate is 8% per year; (b) a single payment now, corresponding to the present value of those 30-year annuities. Michael has big plans, hence he prefers option (b). Assuming that there are no taxes, how much money will he be able to collect now
Answer:
$5,664,627.53
Explanation:
future value of the annuity = $57 million
interest rate = 8%
number of periods = 30
FV annuity factor, 8%, 30 periods = 113.283
annual payment = future value / FV annuity factor= $57,000,000 / 113.283 = $503,164.64
the present value of an annuity = annual payments x PV annuity factor
PV annuity factor, 30 periods, 8% = 11.258
present value of the annuity = $503,164.64 x 11.258 = $5,664,627.53