Lake's margin of safety in sales dollars can be calculated by subtracting the breakeven sales from the actual sales. Since the contribution margin ratio is 40% and the operating profit is $185,000, the breakeven sales can be calculated by dividing the operating profit by the contribution margin ratio:
Breakeven Sales = Operating Profit / Contribution Margin Ratio
Breakeven Sales = $185,000 / 0.40
Breakeven Sales = $462,500
Margin of Safety = Actual Sales - Breakeven Sales
Margin of Safety = $2,700,000 - $462,500
Margin of Safety = $2,237,500
Therefore, Lake's margin of safety in sales dollars is $2,237,500.
Margin of safety in sales represents the amount of sales above the breakeven point, which provides a cushion for covering fixed costs and generating profits. The breakeven point is the sales level at which the company neither earns a profit nor incurs a loss. In this case, Lake's breakeven sales are calculated using the operating profit and the contribution margin ratio. By subtracting the breakeven sales from the actual sales, we can determine the margin of safety. In this scenario, Lake's margin of safety is $2,237,500, indicating that the company's actual sales exceed the breakeven point by that amount, providing a buffer against potential losses.
Learn more about profit here:
https://brainly.com/question/32381738
#SPJ11
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding - Paid i
On December [tex]31, 2020[/tex], Arabian Gulf Corporation reported [tex]\$250,000[/tex] in paid-in capital in excess of par for its common stock in the stockholders' equity section.
The stockholders' equity section of Arabian Gulf Corporation's balance sheet on December [tex]31, 2020[/tex], includes the following components: Common stock ([tex]\$10[/tex] par value; [tex]500,000[/tex] shares authorized; [tex]200,000[/tex] shares issued and outstanding), Paid-in capital in excess of par, common stock ([tex]\$250,000[/tex]), Retained earnings ([tex]\$800,000[/tex]), and Total stockholders' equity ([tex]\$1,250,000[/tex]). Paid-in capital in excess of par refers to the additional amount invested by shareholders above the stated par value of the company's common stock. In this case, investors have contributed an extra [tex]\$250,000[/tex] for the issuance of common stock, exceeding the par value of [tex]\$10[/tex] per share. This additional capital represents the surplus funds invested by shareholders, which adds to the company's overall stockholders' equity.In conclusion, on December [tex]31, 2020[/tex], Arabian Gulf Corporation had [tex]\$250,000[/tex] in paid-in capital in excess of par for its common stock, as reported in the stockholders' equity section.
For more such questions on stockholders:
https://brainly.com/question/30397975
#SPJ11
Answers for each question should be at least 100 words. If possible do not copy directly from any source because it will be turned in through turn it in.
What is inbound marketing and how does it differ from traditional marketing methods? How can online media help a firm with inbound marketing efforts?
What are the benefits and risks associated with social networks? Select a company you are familiar with and discuss how social networking can benefit of harm this company.
Inbound marketing is a marketing approach that focuses on attracting customers through content and interactions that are both useful and relevant. Unlike traditional marketing methods, inbound marketing aims to build relationships with customers by providing them with valuable information that is tailored to their specific needs and interests.
Online media can be a powerful tool for firms that are looking to improve their inbound marketing efforts. By creating high-quality content that is optimized for search engines and shared on social media platforms, businesses can attract new customers and engage with existing ones in a way that is both cost-effective and highly targeted. Online media can also help firms to build their brand image, establish their authority in their industry, and create a loyal customer base.
However, there are also risks associated with social networks that businesses need to be aware of. These risks include negative feedback from customers, negative reviews, and the potential for negative publicity if a social media campaign is not handled properly. Therefore, businesses need to have a solid strategy in place before they start using social networks for marketing purposes.
One company that has benefited greatly from social networking is Starbucks. The company has used social media to engage with customers, promote new products, and generate brand awareness. Starbucks has also used social media to gather feedback from customers and respond to complaints, which has helped the company to improve its customer service and build stronger relationships with its customers.
However, there are also risks associated with social media that Starbucks needs to be aware of. Negative feedback or negative reviews on social media can quickly spread and harm the company's reputation if not handled properly. Starbucks needs to monitor its social media accounts closely and respond to customer complaints in a timely and professional manner to avoid any negative effects on the company's brand image.
To know more about businesses, visit:
https://brainly.com/question/31668853
#SPJ11
A company is using target costing to establish whether it needs to redesign a proposed product.
The following data is available:
Target price £125 per unit
Desired profit margin 25%
The estimated cost of production £100 per unit
By how much will the company attempt to reduce the cost of the product?
A £6.25 per unit.
B £12.50 per unit.
C £25.00 per unit.
The total cost should be £93.75, the company will attempt to reduce the cost by £6.25 per unit (option A).
In target costing, the cost of the product is driven by the market, meaning that the price is set first, and then the product is designed to meet that price. The formula for target costing is:
Target price = Total cost + Desired profit
Let's calculate how much the company will attempt to reduce the cost of the product:
Total cost = Target price - Desired profit
Margin = Desired profit ÷ Target price
Margin = 25% ÷ £125 = 0.25
The margin is 25%, and the target price is £125. We can now use the formula to find the total cost:
Total cost = £125 - 25% x £125 = £125 - £31.25 = £93.75
The estimated cost of production is £100 per unit. Since the total cost should be £93.75, the company will attempt to reduce the cost by £100 - £93.75 = £6.25 per unit. Hence, the correct option is A) £6.25 per unit.
For more about total cost:
https://brainly.com/question/14927680
#SPJ11
Zeta Company is considering investing in Project W or Project K. Project W generates the following cash flows: year "zero" = 52 dollars (outflow); year 1 = 57 dollars (outflow); year 2 = 275 dollars (inflow). Project K generates the following cash flows: year "zero" = 100 dollars (outflow); year 1 = 150 dollars (outflow); year 2 = 350 dollars (inflow). The MARR is 10 %. Compute the External Rate of Return (ERR) of the BEST project. (note1: if your answer is 10.25% then write 10.25 as your answer, not 0.1025)
Comparing the ERRs of the two projects, we can see that Project W has a higher ERR of 40.77% compared to Project K's ERR of 28.03%.
How to Compute the External Rate of Return (ERR) of the BEST project.To compute the External Rate of Return (ERR) for each project, we need to calculate the ERR for Project W and Project K separately and determine which project has the higher ERR. The project with the higher ERR is the better project.
For Project W:
The cash flows are: -52 (year 0), -57 (year 1), and 275 (year 2).
Using the MARR of 10%, we can calculate the ERR using the following formula:
0 = -52 + (-57) / (1 + ERR)^1 + 275 / (1 + ERR)^2
For Project K:
The cash flows are: -100 (year 0), -150 (year 1), and 350 (year 2).
Similarly, using the MARR of 10%, we can calculate the ERR for Project K:
0 = -100 + (-150) / (1 + ERR)^1 + 350 / (1 + ERR)^2
Solving for the ERR of Project K, we find that it is approximately 28.03%.
Comparing the ERRs of the two projects, we can see that Project W has a higher ERR of 40.77% compared to Project K's ERR of 28.03%.
Therefore, Project W is the better project based on the higher ERR.
Learn more about External Rate of Return at https://brainly.com/question/17128987
#SPJ4
Direct labor variances
Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. 15,800 units used 65,400 hours at an hourly rate of $19.25 per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number..
a. Direct labor rate variance $ b. Direct labor time variance $ c. Direct labor cost variance $
Therefore the answer is:
a. Direct labor rate variance $-15,675
b. Direct labor time variance $360,000
c. Direct labor cost variance $360,000
(a) Direct labor rate variance$ $$[ = AH (AR-SR)]
Where AH = Actual hours worked
AR = Actual hourly rate
SR = Standard hourly rate Given ,AH = 65,400 hours AR = $19.25 per hour SR = $20.00 per hour
Therefore, Direct labor rate variance = 65,400 ($19.25 - $20.00) = $-15,675The unfavorable variance is $15,675.
(b) Direct labor time variance $$[ = (AH - SH) SR ]$$Where SH = Standard hours allowed Given, AH = 65,400 hours SH = 15,800 units x 3 hours per unit = 47,400 hours SR = $20.00 per hour
Therefore, Direct labor time variance = (65,400 - 47,400) $20.00 = $360,000The favorable variance is $360,000.
(c) Direct labor cost variance:
[tex]$[ = (AH SR) - (SH SR)]$$[ = AH SR - SH SR]$$[ = SR(AH - SH)]$[/tex]
Given, AH = 65,400 hours SH = 15,800 units x 3 hours per unit = 47,400 hours SR = $20.00 per hour
[tex]$$[ = AH (AR-SR)]$$[/tex]
Therefore, Direct labor cost variance = $20.00 (65,400 - 47,400) = $360,000The favorable variance is $360,000.
Therefore the answer is:
a. Direct labor rate variance $-15,675
b. Direct labor time variance $360,000
c. Direct labor cost variance $360,000
To know more about labor refer here : brainly.com/question/32293529
#SPJ11
A CPA has been doing the records for a company for the last ten years. She was approached by the owner to create two sets of records because he is going through a divorce and wants to keep as much of his assets as possible.
After you select ONE scenario, in at least 150 words, address the following prompts as they pertain to your chosen scenario.
Compare and contrast the pros and cons of the CPA doing as asked.
Explain how you would act from an ethical standpoint.
The selected scenario is The CPA creates two sets of records for the owner going through a divorce.
What are the pros and cons of this CPA doings?The prose and cons of the CPA are as follows:
Pros:
1. Financial Advantage for the Owner: Creating two sets of records may provide the owner with the opportunity to hide or undervalue assets, which could potentially result in a more favorable divorce settlement for the owner. This could help the owner retain a larger portion of their assets.
Cons:
1. Unethical Behavior: The CPA would be engaging in fraudulent activity by creating two sets of records. This action goes against the fundamental principles of integrity, objectivity, and professional behavior that govern the accounting profession.
2. Legal Consequences: If the deceitful act is discovered, both the owner and the CPA could face severe legal consequences, including fines, penalties, loss of professional license, and damage to their reputations.
3. Ethical Breach: The CPA has a professional duty to act in the best interest of their clients while maintaining the public's trust. Creating two sets of records violates this duty and undermines the credibility of the accounting profession as a whole.
From an ethical standpoint, it is imperative for the CPA to act with integrity and uphold the highest ethical standards. The CPA should refuse the owner's request to create two sets of records. Instead, the CPA should encourage the owner to follow legal and ethical means to address their divorce proceedings.
The CPA should prioritize their professional responsibilities, including maintaining independence, objectivity, and the integrity of financial reporting. They should consider the long-term consequences of their actions, including potential legal and professional repercussions.
The CPA should also consult their professional code of conduct, which typically prohibits fraudulent activities and requires them to act in the public interest. They may consider seeking guidance from professional bodies or their ethical committees to ensure they are adhering to their professional obligations.
By refusing the owner's request and acting ethically, the CPA upholds the integrity of the accounting profession and demonstrates their commitment to professional standards and public trust.
learn more about CPA: https://brainly.com/question/30285453
#SPJ4
1. Is the opportunity cost of attending this class the same for each one of you? Why or why not. 2. Is it possible for a person to incur an opportunity cost without spending any money? Explain. 3. Discuss the opportunity costs of attending college for four years. Is college more or less costly than you thought it was? Explain. 4. A friend pays for your lunch. Is this an example of a "free lunch"? Why or why not? 5. A layperson says that a proposed government project simply costs too much and therefore shouldn't be undertaken. How might an economist's evaluation be different? 6. Why do people/firms/countries enter into exchanges? Example it with absolute and comparative advantages. 7. When two individuals enter into an exchange, you can be sure that one person benefits and that the other person loses. Do you agree or disagree with this statement? Explain your answer. 8. Explain the differences between positive economics and normative economics and microeconomics and macroeconomics by providing examples in each? 9. Describe how an increase in the number of illegal immigrants entering the country would affect the U.S. PPF. 10. Describe how a war that takes place on U.S. soil would affect the U.S. PPF. 11. Describe how the discovery of a new oil field would affect the U.S. PPF. 12. Can a technological advancement in sector X of the economy affect the number of people who work in sector Y of the economy? Explain your answer.
1. The opportunity cost of attending a class varies among individuals depending on their individual circumstances and alternatives.
2. Opportunity cost can be incurred without spending money, as it refers to the value of the next best alternative foregone.
3. The opportunity costs of attending college for four years can include tuition fees, foregone earnings, living expenses, and student loans, which vary among individuals.
4. A friend paying for your lunch still involves an opportunity cost for the friend, as they could have used the money for other purposes.
5. Economists consider the benefits, trade-offs, and broader impacts of a proposed government project, not just the monetary cost.
6. Exchanges occur to benefit from specialization and trade, allowing individuals, firms, and countries to exploit comparative advantages.
1. The opportunity cost of attending a class varies among individuals depending on their individual circumstances and alternatives.
2. Opportunity cost can be incurred without spending money, as it refers to the value of the next best alternative foregone.
3. The opportunity costs of attending college for four years can include tuition fees, foregone earnings, living expenses, and student loans, which vary among individuals.
4. A friend paying for your lunch still involves an opportunity cost for the friend, as they could have used the money for other purposes.
5. Economists consider the benefits, trade-offs, and broader impacts of a proposed government project, not just the monetary cost.
6. Exchanges occur to benefit from specialization and trade, allowing individuals, firms, and countries to exploit comparative advantages.
7. Exchanges are mutually beneficial, as both parties expect to gain value by obtaining goods or services at a lower opportunity cost.
8. Positive economics describes and explains economic phenomena objectively, while normative economics involves subjective value judgments. Microeconomics studies individual behavior, while macroeconomics analyzes the overall economy.
9. An increase in illegal immigrants can expand the labor force and potentially increase the U.S. PPF by contributing to economic growth.
10. A war on U.S. soil would negatively impact the U.S. PPF due to destruction, loss of life, and disruption of economic activities.
11. The discovery of a new oil field can positively impact the U.S. PPF by increasing potential output and fueling economic growth.
12. Technological advancements in one sector can lead to a reduced demand for labor in another sector, causing shifts in employment patterns.
To know more about opportunity cost, refer to the link below:
https://brainly.com/question/32201649#
#SPJ11
What is the net present value and PI of a project with the following cash flows and a required return of 11.3%?
Year Cash Flow
0 -$28,900
1 $12,450
2 $11,630
3 $ 2,750
The net present value (NPV) of the project is approximately -$5,884.88, and the profitability index (PI) is approximately 0.795.
How to determine the net present valueCalculating the present value (PV) of each cash flow.
PV of Cash Flow = Cash Flow / (1 + Required Return)^Year
PV of Cash Flow at Year 0 = -$28,900 / (1 + 0.113)^0 = -$28,900 (no discounting needed for Year 0)
PV of Cash Flow at Year 1 = $12,450 / (1 + 0.113)^1 ≈ $11,175.87
PV of Cash Flow at Year 2 = $11,630 / (1 + 0.113)^2 ≈ $9,797.02
PV of Cash Flow at Year 3 = $2,750 / (1 + 0.113)^3 ≈ $2,043.23
Calculating the NPV by summing up all the present values of cash flows.
NPV = PV of Cash Flow at Year 0 + PV of Cash Flow at Year 1 + PV of Cash Flow at Year 2 + PV of Cash Flow at Year 3
NPV = -$28,900 + $11,175.87 + $9,797.02 + $2,043.23
NPV ≈ -$5,884.88
Calculating the PI by dividing the present value of future cash inflows by the initial investment.
PI = (PV of Cash Flow at Year 0 + PV of Cash Flow at Year 1 + PV of Cash Flow at Year 2 + PV of Cash Flow at Year 3) / Initial Investment
PI = (-$28,900 + $11,175.87 + $9,797.02 + $2,043.23) / -$28,900
PI ≈ 0.795
Therefore, the net present value (NPV) of the project is approximately -$5,884.88, and the profitability index (PI) is approximately 0.795.
Learn more about net present value at https://brainly.com/question/1884892
#SPJ1
solve 15 fast please
A Moving to another question will save this 2 points Save Answer Question 15 Friends Partnership has three partners. The balance of each partner' capital is: Alia $48,000; Mariam $50,000 and Fatima $5
In the given scenario, the Friends Partnership consists of three partners: Alia, Mariam, and Fatima. The capital balance for each partner is as follows: Alia has $48,000, Mariam has $50,000, and Fatima has $5.
The capital balance of each partner represents their respective investments or contributions to the partnership. It is a reflection of the financial stake each partner has in the business.Alia has contributed $48,000 to the partnership, indicating a substantial investment in the business. Mariam, on the other hand, has invested $50,000, which is slightly higher than Alia's capital. Lastly, Fatima has contributed only $5, suggesting a significantly smaller investment compared to the other partners. The capital balance of the partners plays a crucial role in determining the distribution of profits, losses, and decision-making authority within the partnership. Generally, partners with higher capital balances have a greater share of profits and decision-making power.
It is important to note that the capital balance can change over time due to various factors, such as additional investments, withdrawals, or the allocation of profits or losses. Regularly updating and maintaining accurate capital accounts is essential for the proper functioning and transparency of the partnership.
for such more questions on capital
https://brainly.com/question/25715888
#SPJ11
Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 30 year, fully amortizing, fixed rate mortgage at an annual rate of 5% with monthly compounding and monthly payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20. If Ann gets a 50% LTV loan for $500,000, what is her DSCR?
A. There is not enough information to compute Ann's DSCR.
B. 3.10
C. 4.00
D. 1.20
The annual NOI is $100,000, her DSCR would be:$100,000/$64,418.64 = 1.55.
The minimum DSCR should be 1.20 according to the lender. Ann is going to get a 50 percent LTV loan of $500,000. As a result, the amount of the loan that she would receive would be $1,000,000 (since the total cost of the building is $2,000,000).There are 12 monthly payments per year, and the mortgage is fully amortized. As a result, the monthly payment is calculated as follows:$1,000,000 [(.05/12) (1 + .05/12)^360]/[(1 + .05/12)^360 - 1]= $5,368.22 per month (approx.)Thus, the annual debt service is:12 x $5,368.22 = $64,418.64Since the annual NOI is $100,000, her DSCR would be:$100,000/$64,418.64 = 1.55.
Learn more about DSCR here:
https://brainly.com/question/32312238
#SPJ11
! Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchas
The price of products offered (COGS) for January is $1,380. Ending stock value = $925. Cost of goods bought = $1,950.
Total internet sales for January = $3,900. The gross earnings for January are $2,520.
To solve the sports using the given statistics, we are able to carry out a unique identity inventory costing method. Let's go through each exercise little by little:
Exercise 3: Calculate the value of goods offered (COGS) for January.
To calculate COGS, we need to determine the value of units bought throughout the length.
January 10: 80 devices sold at a price of $6.00 according to the unit.
COGS = 80 devices * $6.00 = $480
January 25: 180 gadgets offered at a value of $5.00 according to the unit.
COGS = 180 units * $5.00 = $900
Therefore, the price of products offered (COGS) for January is $1,380 ($480 + $900).
Exercise 4: Calculate the ending inventory fee as of January 31.
To calculate the ending stock cost, we want to decide on the last gadgets and their respective prices.
Remaining gadgets from January 30 buy: 180 devices * $4.50 in step with unit = $810
Remaining gadgets from January 20 purchase: 5 devices * $5.00 in line with unit = $25
Remaining devices from beginning stock: 15 gadgets * $6.00 according to unit = $90
Ending stock value = $810 + $25 + $90 = $925
Exercise 5: Calculate the cost of goods purchased all through January.
To calculate the value of goods bought, we sum up the charges of the purchases made during the month.
Cost of goods bought = $840 + $300 + $810 = $1,950
Exercise 6: Calculate the internet sales revenue for January.
To calculate internet sales, we multiply the number of gadgets offered with the aid of their respective promoting charge.
January 10: 80 devices bought at $15 in step with the unit.
Net sales sales = 80 devices * $15 = $1,200
January 25: 180 gadgets are offered at $15 per unit.
Net income revenue = a hundred and eighty devices * $15 = $2,700
Total internet sales sales for January = $1,200 + $2,700 = $3,900
Exercise 7: Calculate the gross income for January.
Gross income is calculated by means of subtracting the price of goods offered (COGS) from internet sales.
Gross profit = Net sales sales - Cost of goods bought (COGS) = $3,900 - $1,380 = $2,520
Therefore, the gross earnings for January are $2,520.
To know more about COGS,
https://brainly.com/question/30367816
#SPJ4
The correct question is:
Carey, in 20X2, gave tax advice in a letter to Jackson, a tax only client. For reasons other than the advice given, Jackson engages Urban for her tax work in 20X3. Carey had not been engaged to assist in the implementation of the actions called for by the advice or to inform Jackson if subsequent tax law changes would adversely affect the advice given. In 20X3, the tax law changes and the advice Carey gave in 20X2 if followed again in 20X3 and subsequent years would increase the amount of taxes Jackson will pay. Carey is-· A) not required to inform Jackson about the change in the law.· B) required to inform Jackson about the change in the law.· C) required to inform Urban about the tax advice given to Jackson· D) required to recall the letter to Jackson because the tax law changed
No, Carey is not required to inform Jackson about the change in tax law. The correct option is A.
Based on the given scenario, Carey, a tax advisor, provided tax advice to Jackson in 20X2. However, for reasons unrelated to the advice given, Jackson decided to engage Urban for her tax work in 20X3. It is important to note that Carey was not specifically engaged to assist with implementing the actions recommended in the advice nor to inform Jackson about subsequent changes in tax law that may affect the advice provided.
In 20X3, there is a change in tax law that would result in an increase in the amount of taxes Jackson would have to pay if she were to follow the advice provided by Carey in 20X2. In this situation, Carey's obligations and responsibilities depend on the nature of her engagement and the scope of her services.
Since Carey was not engaged by Jackson for the implementation of the advice or to inform her about subsequent changes in tax law, she is not obligated to inform Jackson about the change in the law (option A). Carey's duty to Jackson was limited to the tax advice provided in the letter, and she has no ongoing duty to monitor changes in tax law and inform clients about them unless specifically contracted to do so.
Similarly, Carey is not required to recall the letter to Jackson because the tax law changed (option D). The change in tax law does not automatically invalidate the advice provided, as it was given based on the law in effect at the time.
Carey is also not obligated to inform Urban about the tax advice given to Jackson (option C) unless there is a specific agreement or legal requirement to do so. The engagement with Urban is independent of Carey's previous relationship with Jackson.
Therefore, the correct answer is option A) Carey is not required to inform Jackson about the change in the law. However, it is generally good practice for tax advisors to keep their clients informed about significant changes in tax law that may affect their advice, even if not explicitly required.
Therefore the correct answer is option A.
To learn more about tax law refer here:
https://brainly.com/question/11287870
#SPJ11
32. Gemma Company manufactures basketball backboards. The following information pertains to the company's normal operations per month: Output units : 15,000 boards Machine-hours : 4,000 hours Direct manufacturing labor-hours : 5,000 hours Direct manufacturing labor per hour : $12 Direct materials per unit : $100 Variable manufacturing overhead costs : $150,000 Fixed manufacturing overhead costs : $300,000 Product and process design costs : $200,000 Marketing and distribution costs : $250,000 Required: a. For long-run pricing, what is the full-cost base per unit? b. Gemma Company is approached by an overseas city to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for an additional one-time setup charge of $40,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order?
a. For long-run pricing, the full-cost base per unit is $1,100 per unit, and b. The minimum acceptable bid per unit on the one-time-only special order is $1,140.
a. For long-run pricing, the full-cost base per unit is calculated as follows:
Full-cost base per unit = (Variable manufacturing overhead costs + Fixed manufacturing overhead costs + Product and process design costs + Marketing and distribution costs) / Output units
= ($150,000 + $300,000 + $200,000 + $250,000) / 15,000 units
= $1,100 per unit
b. The minimum acceptable bid per unit on the one-time-only special order is calculated as follows:
Minimum acceptable bid per unit = (Full-cost base per unit + Additional one-time setup charge)
= $1,100 per unit + $40,000 / 1,000 units
= $1,140 per unit
Therefore, the minimum acceptable bid per unit on the one-time-only special order is $1,140.
To know more about minimum acceptable bid, refer here:
https://brainly.com/question/31813088#
#SPJ11
An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on the second year, P9,000 on the third year, P8,500 on the fourth year. Determine the future amount of the amortization if interest is 0.06.
The future amount of the amortization, calculated using a gradient series formula, is approximately P6,892.99, given an initial amount of P10,000 and specific parameters.
The given amortization forms a gradient series, where the amount decreases by P500 each year. To determine the future amount, we can calculate the sum of the series.
Using the formula for the sum of a gradient series, the future amount (A) can be found:
[tex]A = P(1 + i)^n - (d/i)[(1 + i)^{n - 1}][/tex]
Where:
P = Initial amount = P10,000
i = Interest rate = 0.06
n = Number of years = 4
d = Common difference = P500
Plugging in the values, we can calculate the future amount:
[tex]A = 10000(1 + 0.06)^4 - (500/0.06)[(1 + 0.06)^{4 - 1}][/tex]
[tex]A = 10000(1.06)^4 - (500/0.06)[(1.06)^{4 - 1}][/tex]
A = 10000(1.262476) - (500/0.06)(0.262476)
A = 12624.76 - 21875(0.262476)
A = 12624.76 - 5731.77
A = 6892.99
Therefore, the future amount of the amortization is approximately P6,892.99.
To learn more about amortization follow the link:
https://brainly.com/question/32560031
#SPJ4
Saraya Inc provides its employees two weeks of paid vacation per year. As of December 31, 65 employees have earned two weeks of vacation time to be taken the following year if the average weekly salary for these employees is €475, what is the required journal entry at the end of the year? A. Debit Salaries and Wages Payable for €123,000 and credit Salaries and Wages Expense for €123,000 B. No entry is required C. Debit Salaries and Wages Expense for €61,750 and credit Salaries and Wages Payable for €61,750 D. Debit Salaries and Wages Expense for €123.500 and credit Salanes and Wages Payable for €123,500
The correct journal entry at the end of the year would be: C. Debit Salaries and Wages Expense for €61,750 and credit Salaries and Wages Payable for €61,750.
The reason for this entry is that the employees have earned two weeks of vacation time, which represents 65 employees multiplied by 2 weeks, or a total of 130 weeks. Since the average weekly salary for these employees is €475, we can calculate the total earned vacation pay as follows:
Total earned vacation pay = 130 weeks * €475 per week = €61,750.
By debiting Salaries and Wages Expense, we recognize the expense related to the earned vacation time for the year. This reduces the company's profit.
At the same time, by crediting Salaries and Wages Payable, we record the liability owed to the employees for their earned vacation time, which represents an obligation for the company to pay in the future.
Option C correctly reflects this entry by debiting Salaries and Wages Expense for €61,750 and crediting Salaries and Wages Payable for €61,750.
For more such questions on Wages
https://brainly.com/question/29603429
#SPJ8
Question 24 1 pts Which of the following statements concerning the outsourcing is FALSE? a. If the anticipated demand for a product or its parts are seasonal, outsourcing is preferred over in-housing O b. If the company would like to focus on its core competency and improve its overall supply chain efficiency, outsourcing makes more sense than in-housing or in-sourcing. c. If the company does not want to deal with potential labor conflicts and the subsequent work stoppages, outsourcing is a desirable strategic option None of the above Question 25 1 pts A global food products company, Yummy, makes soups that are specifically tailored to the tastes of (foreign) consumers in individual host countries. The most appropriate sourcing strategy that Yummy is likely to use for its fresh ingredients such as vegetables would be a. Local, close to its production plant when possible b. National, using suppliers within each host country c. Global, using the same suppliers across the world. None of the above
The correct answer for the given question is option (A) If the anticipated demand for a product or its parts are seasonal, outsourcing is preferred over in-housing.Outsourcing is not preferred over in-housing if the anticipated demand for a product or its parts are seasonal.
This statement is FALSE concerning the outsourcing. The correct statement is, if the anticipated demand for a product or its parts are consistent and reliable, outsourcing is preferred over in-housing. The outsourcing company makes profits from outsourcing services that are already established.
Companies that outsource can grow and be successful in their respective areas by outsourcing.In-house, insourcing or in-housing, on the other hand, is a business practice that keeps and performs tasks within an organization's own premises, rather than outsourcing them to another company.
It is not preferred when there is seasonal demand for a product or its parts.A global food products company, Yummy, makes soups that are specifically tailored to the tastes of (foreign) consumers in individual host countries. The most appropriate sourcing strategy that Yummy is likely to use for its fresh ingredients such as vegetables would be:Local, close to its production plant when possible.
This is because it would be easier to locate the ingredients from a local producer than it would be to import them. The local sources would also be able to provide the freshest produce possible to make sure the soup is of the best quality possible.
Hence, the most appropriate sourcing strategy that Yummy is likely to use for its fresh ingredients such as vegetables would be Local, close to its production plant when possible.
Therefore, the correct answer for the given question is option (A).
For more question on outsourcing
https://brainly.com/question/31941794
#SPJ11
Craft Ltd is preparing its financial statements for the year ended 31 December 2021. The directors learned about errors in accounting balances as follows.
The following new information became available:
(a) The current tax provision of the prior year was understated by $50,000 based on the final self-assessed tax computation completed in the current year.
(b) The write-down for an item of inventory in the prior year was determined to be overstated. The item was sold in the current year for an amount that exceeded its net realizable value by $20,000.
(c) A machine with a cost of $110,000 and an accumulated depreciation of $20,000 at the end of the prior year was previously estimated to have a residual value of $10,000 and a useful life of ten (10) years. The current year estimates indicated that the residual value was nil and the useful life was eight (8) years. The company used the straight-line method for depreciation.
The directors are wondering whether (1) any adjustments are required, if so, (2) show the journal entries to effect the change in estimates. In addition, (3) any disclosure requirements of changes in Accounting Estimates.
Required: Provide advice to the managing director, with relevant references to the Australian Accounting standards in your answer.
The adjusting entries must be recognized by Craft Ltd due to the errors in accounting balances discovered while preparing the financial statements.
The new information revealed that there are errors in the current tax provision, write-down for an item of inventory, and estimated useful life. In addition, the company is required to disclose information about the changes in accounting estimates. The management must make adjusting entries to correct the errors in accounting balances. The company should recognize the changes in the current tax provision of the prior year, write-down for an item of inventory, and depreciation due to the change in useful life of the machine. As a result, the company's income statement, balance sheet, and cash flow statement must be updated, with any necessary adjustments recorded in the appropriate journals. In the general ledger, the relevant accounts must also be updated to reflect the changes in accounting estimates.
The journal entries to record these changes are as follows:
(1) adjusting entry to record the change in the current tax provision for the prior year,
(2) adjusting entry to record the write-down for an item of inventory, and
(3) adjusting entry to record the change in the estimated useful life of the machine.
Conclusion:
Craft Ltd must recognize the adjusting entries for the errors in accounting balances discovered while preparing the financial statements. The company should recognize the changes in the current tax provision of the prior year, write-down for an item of inventory, and depreciation due to the change in useful life of the machine. The relevant journals and general ledger accounts must also be updated to reflect these changes. Additionally, the company must disclose information about the changes in accounting estimates according to the Australian Accounting standards.
To know more about financial statements visit:
brainly.com/question/30355441
#SPJ11
the current condition of the market of milk is shown in the figure above, if farmers are to enjoy a lower feed price, and as a result, 9 units of additional milk are available for sale regardless of the price level. by how much will equilibrium price change as a result?
The current condition of the milk market is shown in the above figure. If the farmers are to enjoy a lower feed price, and as a result, 9 units of additional milk are available for sale regardless of the price level, then the equilibrium price will change by $0.50.
A market equilibrium refers to a state of market where the quantity supplied equals the quantity demanded. The quantity supplied and demanded depends upon the price level of the product. In the figure given above, equilibrium price is $2.50 and the equilibrium quantity is 12 units.
If the farmers are to enjoy a lower feed price, and as a result, 9 units of additional milk are available for sale regardless of the price level, then it means that there is an increase in supply of 9 units of milk. This would shift the supply curve to the right from S to S'. The new equilibrium can be obtained by finding out the intersection of the new supply curve S' and the demand curve D.
The new equilibrium is at point E'. At this new equilibrium point, the equilibrium price has decreased from $2.50 to $2.00.As the original equilibrium price is $2.50 and the new equilibrium price is $2.00, the change in equilibrium price can be calculated as:Change in equilibrium price = New equilibrium price - Original equilibrium price= $2.00 - $2.50= -$0.50Thus, the equilibrium price will decrease by $0.50 as a result of an increase in supply of 9 units of milk.
For more questions on: equilibrium price
https://brainly.com/question/30833873
#SPJ11
Question 21 9 pts Before any tax is imposed, demand for skateboards is described by the equation Q = 200-5p, and supply is given by Q = 50+ 3p. Suppose a specific tax of $20 is imposed on the sellers.
Answer: The incidence of the tax on skateboard buyers is $10.50, and the incidence of the tax on skateboard sellers is $9.50.
Explanation: Given ,Q = 200-5p (Demand)Q = 50+ 3p (Supply)Tax imposed = $20. Let the initial equilibrium price be P0.Quantity supplied = Quantity demanded50 + 3P = 200 - 5P=> 8P = 150=> P = $18.75 (Initial equilibrium price)Quantity = 200-5p=> Quantity demanded = 200-5(18.75) = 100Quantity supplied = 50+ 3p=> Quantity supplied = 50 + 3(18.75) = 107.25. After tax imposition, Price to buyer = $20+18.75 = $38.75. Price to seller = $18.75 Suppliers' incidence of the tax is given by the difference between the original and new equilibrium price. Suppliers' incidence = $18.75-$17.25 = $1.5The incidence of the tax on skateboard buyers is $20-$1.5 = $18.50The incidence of the tax on skateboard buyers is ($38.75-$18.50) = $10.50.
Know more about tax here:
https://brainly.com/question/31851456
#SPJ11
pedro, age 57, is the soile owner of his principal residence, which he has owned and occupied for 10 years. maria, his spouse, has lived with pedro for the full 10 years. he sells his house for a realized gain of $340,000 in 2022. how much of the gain must pedro and maria recognize on their 2022 tax return if they file as married filing jointly?$340,000$90,000$250,000$0
The gain that Pedro and Maria must recognize on their 2022 tax return if they file as married filing jointly is $0.
Under the tax laws in the United States, individuals can exclude a certain amount of gain from the sale of their principal residence from their taxable income. This exclusion is known as the home sale exclusion.
As of the knowledge cutoff in September 2021, the maximum home sale exclusion amount for a married couple filing jointly is $500,000. To qualify for this exclusion, they must meet certain ownership and residency requirements.
In this scenario, Pedro has owned and occupied the residence for 10 years, which satisfies the ownership and residency requirements. Since the realized gain from the sale of their house is $340,000, which is less than the maximum exclusion amount of $500,000, Pedro and Maria can exclude the entire gain from their taxable income. Therefore, they would not need to recognize any gain on their 2022 tax return, resulting in a gain of $0.
To know more about married filing jointly, refer here:
https://brainly.com/question/30656633#
#SPJ11
Complete question:
pedro, age 57, is the soile owner of his principal residence, which he has owned and occupied for 10 years. maria, his spouse, has lived with pedro for the full 10 years. he sells his house for a realized gain of $340,000 in 2022. how much of the gain must pedro and maria recognize on their 2022 tax return if they file as married filing jointly?
$340,000
$90,000
$250,000
$0
What should we report on the fund financial statements?
Fiscal accountability
Net assets resulting of financial operations of the government all together
Cost of government services
All of the above
The fund financial statements should report "All of the above" - fiscal accountability, net assets resulting from financial operations of the government all together, and the cost of government services.
What information should be included in the fund financial statements?The fund financial statements are an essential component of government financial reporting and provide a comprehensive view of the financial activities of the government. They serve to demonstrate fiscal accountability, showcase the net assets resulting from financial operations, and disclose the cost of government services.
These statements present a detailed breakdown of the government's funds, including general funds, special revenue funds, capital projects funds, debt service funds, and more.
Fiscal accountability is a crucial aspect of financial reporting. It entails providing transparent and accurate information about the government's financial activities, ensuring that public funds are used responsibly and in accordance with legal and regulatory requirements.
The fund financial statements help in fulfilling this objective by disclosing the sources and uses of funds and presenting the financial position and results of operations.
The net assets resulting from financial operations of the government all together reflect the overall financial position of the government. It includes the accumulated surplus or deficit from the government's ongoing operations and provides insights into its long-term financial stability and sustainability.
Additionally, the cost of government services is an important aspect of the fund financial statements. It provides information on the expenses incurred by the government in delivering various public services and programs. This helps in assessing the efficiency and effectiveness of government operations and aids in resource allocation decisions.
In summary, the fund financial statements should encompass fiscal accountability, the net assets resulting from financial operations, and the cost of government services. By including these elements, the statements provide a comprehensive view of the government's financial activities, ensuring transparency, accountability, and informed decision-making.
Learn more about fund financial statements
brainly.com/question/31748239
#SPJ11
Types of products and services on the Products and Services List include: a. Service b. Non-inventory c. Inventory d. All of the above
Types of products and services on the Products and Services List include All of the above i.e., Service, Non-inventory and Inventory. Option D is the correct answer.
In contrast to a product, which is a tangible commodity that is offered for sale, consideration, or consumption, a service is an intangible good that is produced as a consequence of the effort of one or more individuals. Option D is the correct answer.
It may appear that the two ideas' tangibility is what distinguishes them most, yet this is not always the case. In contrast to products, which are almost always physical, services are often immaterial. One thing to keep in mind is how closely products and services fit with one another. Actually, most products come with some form of service element. The two concepts are different from one another, though, and it is important to understand what those differences entail in practice.
Learn more about Service here:
https://brainly.com/question/24553900
#SPJ4
Which of the following statements best describes the relationship between Change
A. There are no dependencies between Configuration Management & Change Management
B. If Change Management is implemented without Configuration Management; the result will be less effective
C. Change Management cannot be implemented without Configuration Management
D. Change Management and Configuration Management must be implemented
The statement that best describes the relationship between Change Management and Configuration Management is D) Change Management and Configuration Management must be implemented. Option D
Change Management and Configuration Management are two interconnected processes within IT Service Management (ITSM) frameworks like ITIL (Information Technology Infrastructure Library). They both play essential roles in managing and controlling changes in an organization's IT environment.
Change Management focuses on managing the lifecycle of changes to IT services, systems, or infrastructure. It involves processes for requesting, reviewing, approving, implementing, and reviewing changes.
On the other hand, Configuration Management deals with the identification, recording, and management of Configuration Items (CIs) within the IT infrastructure.
CIs are components that need to be controlled and managed, such as hardware, software, documentation, and network devices. Configuration Management provides a clear understanding of the relationships and dependencies between CIs and helps in maintaining an accurate Configuration Management Database (CMDB).
The relationship between Change Management and Configuration Management is closely intertwined. Configuration Management provides the foundation for Change Management by providing accurate and up-to-date information about the configuration items and their relationships.
Without Configuration Management (option C), the organization would lack visibility into the configuration items and their relationships. This would lead to challenges in assessing the impact of changes, making informed decisions, and ensuring that changes are implemented correctly.
Change Management without Configuration Management (option B) would be less effective as it would lack the necessary information and control over the IT environment. Option D
For more such questions on Change Management visit:
https://brainly.com/question/29487336
#SPJ11
Beckenworth had cost of goods sold of $10,121 million, ending inventory of $2,789 million, and average Inventory of $2,035 million. Its days' sales in inventory equals: (Use 365 days a year.)
To calculate the days' sales in inventory, we need to use the following formula: Days' sales in inventory = (Ending Inventory / Cost of Goods Sold) * 365
Using the information provided in the question, we can calculate the days' sales in inventory for Bec Kenworth as follows:
Days' sales in inventory = ($2,789 million / $10,121 million) * 365 = 73.9 days
This means that it takes Bec Kenworth approximately 73.9 days to sell its entire inventory. The days' sales in inventory metric is useful for measuring how quickly a company is able to sell its inventory. A high number of days' sales in inventory may indicate that a company is having trouble selling its products, while a low number may indicate that a company is able to quickly turn over its inventory.
Visit here to learn more about sales in inventory:
brainly.com/question/29766975
#SPJ11
Background Information: Marcia Brady a vivacious, smiling, somewhat loud yet friendly woman entered your clothing store over 30 minutes ago and seems to be having trouble deciding the style and colour
Given the background information that Marcia Brady, a vivacious, smiling, somewhat loud yet friendly woman entered your clothing store over 30 minutes ago and seems to be having trouble deciding the style and color.
A professional approach in dealing with her could be helpful. First, you should approach her and ask her if she needs any assistance in choosing the right style or color of clothes. Then you should listen carefully to what she has to say and try to identify the type of clothes she wants. It is important to provide a pleasant and comfortable shopping experience for her. Also, you can suggest different styles and colors of clothes that might suit her and give her an honest opinion about how the clothes look on her. This will help build trust and establish a good customer relationship with her. You can also offer her a few tips on how to accessorize the clothes to achieve a better look or appeal.As a store attendant, it is important to be friendly, professional and knowledgeable about the products sold in the store. This would enable you to provide better services to customers, which would translate into customer satisfaction and loyalty.
know more about customer relationship.
https://brainly.com/question/32372664
#SPJ11
Net income appears on the worksheet: A) only in the balance sheet credit column. B) only in the income statement credit column. C) in the income statement debit column and balance sheet debit column. D) in the income statement debit column and balance sheet credit column
The correct option is: D) in the income statement debit column and balance sheet credit column.
Net income is calculated on the income statement by subtracting total expenses from total revenues. It represents the profit or loss generated by a business during a specific period. Net income is typically shown in the debit column of the income statement, as it represents a decrease in the owner's equity or retained earnings.
After calculating net income, it is then transferred to the balance sheet. Net income is added to the owner's equity or retained earnings section of the balance sheet, which is typically in the credit column. This increase in the owner's equity reflects the retained earnings from the income statement.
Therefore, the correct answer is: D) in the income statement debit column and balance sheet credit column.
Learn more about Income statement
brainly.com/question/14308954
#SPJ11
Firm A and Firm B are the only two firms in a market where price is determined by the inverse demand function: P = 135 - Q. Q is the sum of Firm A and Firm B's output, so Q = 9A + 9B Firm A's total cost function is given by TCA(9A) = 39A Firm B's total cost function is given by TCB(9B) = 29B If these firms Cournot compete (simultaneously setting quantities), what will market output be when both firms are maximizing profits in equilibrium? (Note: The answer may not be a whole number, so round to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)
The market output when both firms are maximizing profits in equilibrium under Cournot competition is 10 units.
In the Cournot model, each firm chooses its quantity to maximize its profit, taking into account the anticipated reaction of the other firm. The equilibrium occurs when neither firm has an incentive to unilaterally change its quantity.
In this case:
Inverse demand function: P = 135 - Q
Total cost function for Firm A: TCA(9A) = 39A
Total cost function for Firm B: TCB(9B) = 29B
The total profit for each firm is calculated as:
Profit = Revenue - Total Cost
Revenue = Price * Quantity
Firm A:
Revenue = P * A = (135 - Q) * A = (135 - (9A + 9B)) * A
Profit = Revenue - Total Cost = (135 - 9A - 9B) * A - 39A
Firm B:
Revenue = P * B = (135 - Q) * B = (135 - (9A + 9B)) * B
Profit = Revenue - Total Cost = (135 - 9A - 9B) * B - 29B
To find the equilibrium quantities (A and B), we maximize the profit functions for both firms by taking the derivative with respect to A and B and setting them equal to zero.
For Firm A:
dProfit/dA = 0
(135 - 9A - 9B) - 9A - 39 = 0
135 - 18A - 9B - 39 = 0
-18A - 9B + 96 = 0
-18A - 9B = -96
For Firm B:
dProfit/dB = 0
(135 - 9A - 9B) - 29 = 0
135 - 9A - 9B - 29 = 0
-9A - 9B + 106 = 0
-9A - 9B = -106
We now have a system of two equations:
-18A - 9B = -96
-9A - 9B = -106
Solving this system of equations, we find:
A = 3
B = 7
Therefore, in equilibrium, Firm A produces a quantity of 3 units, and Firm B produces a quantity of 7 units. The market output is the sum of their quantities:
Market Output = A + B = 3 + 7 = 10 units.
Learn more about Cournot competition here:
https://brainly.com/question/31776525
#SPJ11
Lokomotiv Limited budgeted for a profit before interest and tax of $55,000 for the month of June. The actual profit before interest and tax was a favourable variance of 7% Calculate, to the nearest wh
Therefore, the actual profit before interest and tax for Lokomotiv Limited for June is $58,850, which is a favorable variance of 7% over the budgeted amount. The calculation is completed to the nearest whole number.
Lokomotiv Limited budgeted for a profit before interest and tax of $55,000 for the month of June. The actual profit before interest and tax was a favourable variance of 7%. The actual profit before interest and tax would be higher than budgeted, resulting in a favorable variance of 7%.
The formula for the calculation of favorable variance is:
Actual - Budget = Favorable variance Profit before interest and tax of Lokomotiv Limited for June,
Budgeted profit before interest and tax = $55,000
Actual profit before interest and tax = $x (unknown)
Favorable variance = 7% of $55,000 = $3850.00
We have to calculate the actual profit before interest and tax.
To calculate the actual profit before interest and tax, we will use the following formula:
Actual = Budgeted + Favorable Variance
Actual profit before interest and tax = Budgeted profit before interest and tax + Favorable variance
Actual profit before interest and tax = $55,000 + $3,850
Actual profit before interest and tax = $58,850
to know more about interest visit:
https://brainly.com/question/30393144
#SPJ11
Which of the following is true with respect to hospitals. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice Private not-for-profit and for-profit hospitals record depreciation expense, but government-owned hospitals do not D P rivate not-for-profit and for profit hospitals report residual equity within the categories of Net Assets with Donor Restrictions or Net Assets without Donor Restrictions, but government owned hospitals do not Private not-for-profit and for groft hospitals may report cash flows from operating activities on the indirect method, but government-owned hospitals may not Al of the choices are true
Each statement captures a valid characteristic of hospitals, highlighting the diverse financial reporting practices that can exist across different types of healthcare institutions. Option D is correct.
Private not-for-profit and for-profit hospitals, as well as government-owned hospitals, may record depreciation expenses as part of their financial reporting.
Private not-for-profit and for-profit hospitals typically report residual equity in the categories of Net Assets with Donor Restrictions or Net Assets without Donor Restrictions. Government-owned hospitals may have different reporting structures.
Private not-for-profit and for-profit hospitals, as well as government-owned hospitals, have the flexibility to report cash flows from operating activities using the indirect method, although they may choose different reporting approaches. Option D is correct.
To know more about cash flow, here
https://brainly.com/question/27994727
#SPJ4
--The complete question is , Which of the following is true with respect to hospitals. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice
A. Private not-for-profit and for-profit hospitals record depreciation expense, but government-owned hospitals do not.
B. Private not-for-profit and for profit hospitals report residual equity within the categories of Net Assets with Donor Restrictions or Net Assets without Donor Restrictions, but government owned hospitals do not.
C. Private not-for-profit and for groft hospitals may report cash flows from operating activities on the indirect method, but government-owned hospitals may not.
D. All of the choices are true--
b. explain how the parent’s december 31, 2016 pre-consolidation equity investment balance of $2,202,000 was determined.
To determine the parent's December 31, 2016 pre-consolidation equity investment balance of $2,202,000, various factors and transactions related to the equity investment would need to be considered like Initial Investment, Additional Investments, Dividends or Distributions.
Here is a general explanation of how the balance may have been determined:
Initial Investment: The parent company would have made an initial investment in the subsidiary at some point in the past. This initial investment could have been in the form of cash, assets, or other forms of consideration.
Additional Investments: If the parent company made any additional investments in the subsidiary after the initial investment, those amounts would also be considered in calculating the equity investment balance.
Dividends or Distributions: If the subsidiary paid out any dividends or distributions to the parent company, those amounts would be subtracted from the equity investment balance. Dividends or distributions represent a return on investment to the parent company and reduce its equity interest in the subsidiary.
Share of Subsidiary's Profits or Losses: The parent company's share of the subsidiary's profits or losses would be added or subtracted from the equity investment balance, respectively. This reflects the parent company's proportional ownership in the subsidiary and its share of the subsidiary's financial performance.
Adjustments and Revaluations: Various adjustments and revaluations may be made to the equity investment balance based on accounting standards and regulations. These adjustments could include fair value adjustments, impairment charges, or changes in ownership interests.
By considering these factors and analyzing the relevant financial transactions, the parent company would have determined the December 31, 2016 pre-consolidation equity investment balance of $2,202,000.
Learn more about equity investment here:
brainly.com/question/23127834
#SPJ11