The entry to record the transaction is:
Debit Common Stock: $60,000Credit Land: $84,000Therefore, option B is correct.
Given information:
Number of shares issued: 6,000Par value per share: $10Market value of the land: $84,000To record the transaction, there is a need to debit the Common Stock account and credit the Land account. Here's the calculation for the entry:
Debit:
Common Stock = Number of shares issued * Par value per share
Common Stock = 6,000 * $10
Common Stock = $60,000
Credit:
Land = Market value of the land
Land = $84,000
Therefore, the entry to record the transaction is:
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Your question is incomplete; most probably, your complete question is this:
A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000 The entry to record this transaction would dude
A. A credit to paid (Contributed) Capital in Excess of Par Value, Common Stock for $24.000
B. A debit to Common Stock for $60,000
C. A credit to Land for $60.000.
D. A debt to Land for $60,000
Cornflower Corporation distributes equipment (adjusted basis of $70,000, fair market value of $55,000) to its shareholder, Roy. Assume that Cornflower has more than $100,000 of current E & P. What are the tax consequences to Cornflower Corporation and to Roy?
Please show work and explain...thanks!
Answer:
Cornflower Corporation will recognize a $15,000 loss on the distribution of the equipment, but this loss is not deductible for tax purposes. Roy, the shareholder, will recognize $55,000 in dividend income and have a basis of $55,000 in the equipment.
The tax consequences to Cornflower Corporation and Roy for the distribution of equipment are as follows:
For Cornflower Corporation:
1. The distribution of the equipment to Roy will be treated as a property dividend.
2. Cornflower Corporation must recognize a gain or loss on the distribution of the equipment. In this case, the corporation will recognize a loss since the fair market value of the equipment ($55,000) is less than its adjusted basis ($70,000).
3. The loss recognized by Cornflower Corporation is $15,000 ($70,000 adjusted basis - $55,000 fair market value).
4. However, this loss is not deductible by the corporation for tax purposes, as it is disallowed under Internal Revenue Code Section 311(a).
For Roy (the shareholder):
1. Roy will have to recognize the fair market value of the equipment as dividend income, which is $55,000 in this case.
2. The dividend income of $55,000 will be taxed at Roy's individual tax rate for qualified dividends.
3. Roy will have a basis in the equipment equal to its fair market value, which is $55,000. This basis will be used to calculate any gain or loss if Roy decides to sell the equipment in the future.
The tax consequences to Cornflower Corporation; amount of the distribution, Recognizing gain or loss, Tax treatment. The tax consequences to Roy; amount of the distribution, and Taxable income for Roy.
In this scenario, where Cornflower Corporation distributes equipment to its shareholder Roy, there are tax consequences for both the corporation and Roy. Let's analyze the tax implications for each party:
Tax Consequences to Cornflower Corporation;
Determining the amount of the distribution;
The fair market value of the equipment, $55,000, would be considered as the amount of the distribution.
Recognizing gain or loss;
Since the fair market value of the equipment is less than its adjusted basis ($70,000), Cornflower Corporation would recognize a loss on the distribution. The loss is calculated as the difference between the adjusted basis and the fair market value: $70,000 - $55,000 = $15,000.
Tax treatment;
The loss recognized by Cornflower Corporation on the distribution of the equipment would be considered a capital loss for tax purposes. However, since the distribution is made to a shareholder, the loss is generally not deductible by the corporation.
Tax Consequences to Roy (Shareholder);
Determining the amount of the distribution;
Roy would receive the equipment with a fair market value of $55,000.
Taxable income for Roy;
When a corporation distributes property to its shareholder, it is generally treated as a taxable dividend to the extent of the corporation's earnings and profits (E&P).
In this case, since Cornflower Corporation has more than $100,000 of current E&P, the distribution of the equipment to Roy would be considered a taxable dividend.
Roy would include the fair market value of the equipment ($55,000) in his taxable income as a dividend. The tax treatment of the dividend would depend on Roy's individual tax circumstances, such as his tax bracket and applicable tax rates.
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2021 Year end results for Corporate Income Taxpayer Company B is as follows. The Company gave the declaration on 25 April 2022 and will pay tax on 30 April 2022.
Profit for 2020: 5.500.000 TRY
Non-deductible expenses: 400.000 TRY
Previous year losses: 100.000 TRY for 2014, 300.000 TRY for 2016
Domestic Participation Exemption: 350.000 TRY
French Permanent Establishment Income: 300.000 TRY (The income is transferred to Turkey)
Russian Construction Permanent Establishment Income 450.000 TRY (The income is not transferred to Turkey)
Donations to X Foundation that works for public interest: 55.000 TRY
The prepaid tax: 205.000 TRY
The withholding tax paid 330.000 TRY
Corporate income tax rate is %22.
Company B's taxable income for 2021 is 4,950,000 TRY, and the corporate income tax payable is 1,089,000 TRY. The prepaid tax of 205,000 TRY and the withholding tax paid of 330,000 TRY will be offset against the tax liability, and the remaining tax will be paid on April 30, 2022.
To calculate the taxable income and corporate income tax for Company B, we need to consider the given information and apply the relevant rules and regulations. Here's the breakdown:
Profit for 2020: 5,500,000 TRY
Non-deductible expenses: 400,000 TRY
Deductible expenses: 5,500,000 - 400,000 = 5,100,000 TRY
Previous year losses:
Loss from 2014: 100,000 TRY
Loss from 2016: 300,000 TRY
Total previous year losses: 100,000 + 300,000 = 400,000 TRY
Since these losses can be carried forward, they can be deducted from the taxable income.
Domestic Participation Exemption: 350,000 TRY
This exemption reduces the taxable income.
Foreign Permanent Establishment Income:
French Permanent Establishment Income: 300,000 TRY (transferred to Turkey)
Russian Construction Permanent Establishment Income: 450,000 TRY (not transferred to Turkey)
The income transferred to Turkey is taxable, while the income not transferred is not taxable in Turkey.
Donations to X Foundation: 55,000 TRY
Donations made for public interest can be deductible from the taxable income.
Now let's calculate the taxable income:
Taxable income = Deductible expenses - Previous year losses - Domestic Participation Exemption
= 5,100,000 - 400,000 - 400,000 - 350,000
= 4,950,000 TRY
Next, we can calculate the corporate income tax:
Corporate income tax = Taxable income * Tax rate
= 4,950,000 * 0.22
= 1,089,000 TRY
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Walgreens has an EBITDA of $32 million and 4 million shares of common stock outstanding. Walgreens has no debt and no cash. The industry average enterprise value / EBITDA multiple is 8.3. What is your estimate for Walgreen's common stock price (closest to)?
60
40
20
80
Walgreen's common stock price (closest to) will be 60 if it has an EBITDA of $32 million and 4 million shares of common stock outstanding. The correct answer is option A.
Enterprise Value (EV) is the measure of the firm’s value and includes debt and equity of the company, whereas EBITDA is the firm’s earnings before interest, taxes, depreciation, and amortization. Hence, Enterprise Value / EBITDA is one of the best measures to determine whether a firm is undervalued or overvalued.
According to the given information, Walgreens has an EBITDA of $32 million, no debt, and no cash. Also, the enterprise value/EBITDA multiple is 8.3. Therefore, Enterprise Value (EV) = 8.3 x EBITDA= 8.3 x $32 million = $265.6 million.
Since Walgreens has no debt and no cash, its Enterprise Value is equal to its equity value. Hence, Equity Value = Enterprise Value = $265.6 million.
The equity value is then divided by the number of common shares outstanding to obtain the price per share.
Equity Value / Number of shares = Price per share $265.6 million / 4 million shares = $66.4
Price per share = $66.4
Hence, the estimate for Walgreen's common stock price is $66.4.
Therefore, the closest answer is 60 i.e. option A.
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Question 8 0/3 pts 53 22 Details $38,000 is invested at a rate of 12% per year, compounded 12 times per year. In addition, regular payments of $1900 are made at the end of each compounding period. Wha
The future value of the account, considering regular payments of $1,900 per compounding period, an interest rate of 12% compounded 12 times per year, and a time period of 20 years, is approximately $11,837,158,688.
To calculate the future value of the account, we can break it down into two separate investments: the initial investment of $38,000 and the regular payments of $1,900 made at the end of each compounding period.
For the regular payments, we can use the future value of an ordinary annuity formula
Future Value = Payment * (((1 + (Rate / Compounding Frequency)[tex])^{Compounding Frequency * Time}[/tex]) - 1) / (Rate / Compounding Frequency)
In this case
Payment = $1,900
Rate = 0.12 (12% per year)
Compounding Frequency = 12 (compounded 12 times per year)
Time = 20 years
Substituting the values into the formula
Future Value = $1,900 * (((1 + (0.12 / 12)[tex])^(12 * 20)[/tex] - 1) / (0.12 / 12)
Calculate the value inside the parentheses:
(0.12 / 12) = 0.01
(1 + 0.01) = 1.01
(12 * 20) = 240
Future Value = $1,900 * ((1.01)²⁴⁰ - 1) / (0.01 / 12)
Step 2: Calculate the exponent
(1.01)²⁴⁰ ≈ 6.191736267
Future Value = $1,900 * (6.191736267 - 1) / (0.01 / 12)
Calculate the value inside the second set of parentheses:
(0.01 / 12) ≈ 0.000833333333
Future Value = $1,900 * (6.191736267 - 1) / 0.000833333333
Perform the subtraction:
(6.191736267 - 1) ≈ 5.191736267
Future Value = $1,900 * 5.191736267 / 0.000833333333
Perform the division
(5.191736267 / 0.000833333333) ≈ 6,230,083.520
Future Value ≈ $1,900 * 6,230,083.520
Calculate the final value
$1,900 * 6,230,083.520 ≈ $11,837,158,688
Therefore, the future value of the regular payments after 20 years is approximately $11,837,158,688.
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--The given question is incomplete, the complete question is given below " Question 8 0/3 pts 53 22 Details $38,000 is invested at a rate of 12% per year, compounded 12 times per year. In addition, regular payments of $1900 are made at the end of each compounding period. What is the future value of this account after 20 years? Answer = Hint: Imagine this as two separate investments. How much will you have all together in 20 years? Submit Question"--
Chloe's Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.65 for 2,500 and $0.60 for 5,000. Required: If the total cost function for croissants is linear, what will be the average cost to bake 4,200? (Do not round intermediate calculations. Round your final answer to 4 decimal places.) Average cost
The average cost to bake 4,200 croissants is approximately $0.0001.
To determine the average cost to bake 4,200 croissants, we can use the concept of a linear total cost function.
Given:
Average cost for baking 2,500 croissants: $0.65
Average cost for baking 5,000 croissants: $0.60
We can find the equation of the linear total cost function using the two given data points.
Let's assume the total cost function is represented as TC = a + bQ, where TC is the total cost and Q is the quantity of croissants baked.
Using the given data:
TC(2,500) = a + b(2,500) = $0.65
TC(5,000) = a + b(5,000) = $0.60
To solve for a and b, we can solve this system of linear equations.
Multiplying the first equation by 2:
2a + 5,000b = $1.30
Subtracting the second equation from the first:
2a + 5,000b - a - 5,000b = $1.30 - $0.60
a = $0.70
Substituting the value of a back into the first equation:
2(0.70) + 5,000b = $1.30
1.40 + 5,000b = $1.30
5,000b = $1.30 - $1.40
5,000b = -$0.10
b = -$0.10 / 5,000
b = -$0.00002
Now we have the equation for the linear total cost function:
TC = 0.70 - 0.00002Q
To find the average cost to bake 4,200 croissants, we divide the total cost by the quantity:
Average Cost = TC(4,200) / 4,200
Substituting Q = 4,200 into the total cost function:
Average Cost = (0.70 - 0.00002(4,200)) / 4,200
Calculating the average cost:
Average Cost = (0.70 - 0.084) / 4,200
Average Cost = 0.616 / 4,200
Average Cost = 0.0001467 (rounded to 4 decimal places)
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(a) Consider an AD-AS model with Static Expectations. Show how changes in monetary policy generate short-run movements in output.
(b) Consider an AD-AS model with Rational Expectations. Show how changes in the unanticipated component of monetary policy generate short-run movements in output.
(c) Explain how overlapping wage contracts generate persistence in output when there are monetary policy shocks.
(a) Changes in monetary policy in an AD-AS model with Static Expectations cause instantaneous shifts in the aggregate demand curve, leading to short-run movements in output.
(b) Unanticipated monetary policy in an AD-AS model with Rational Expectations generates short-run movements in output, with unexpected expansionary policy raising output and unexpected contractionary policy reducing it.
(c) Overlapping wage contracts create persistence in output when there are monetary policy shocks due to the stickiness of wages, causing firms to adjust production levels and leading to a gap between prices and wages.
(a) Changes in monetary policy generate short-run movements in output in an AD-AS model with Static Expectations. These models incorporate a situation where prices are assumed to be fixed in the short run. In the AD-AS model with static expectations, the effects of a change in monetary policy are instantaneous, and the economy moves from one short-run equilibrium to another.
Monetary policy shifts the aggregate demand curve, which changes the equilibrium of the short-run output level and the price level. A rise in the supply of money causes interest rates to fall, and the demand for investment and consumer goods and services rises. This shift causes the aggregate demand curve to shift to the right, and output expands.
(b) The unanticipated component of monetary policy generates short-run movements in output in an AD-AS model with Rational Expectations. In Rational Expectations, changes in the policy are anticipated by consumers and firms.
When a monetary policy surprises consumers and firms, the unanticipated component of the monetary policy causes short-run movements in output. The unexpected expansionary monetary policy can raise the level of output in the short run, whereas unexpected contractionary monetary policy can reduce it.
(c) Overlapping wage contracts generate persistence in output when there are monetary policy shocks. Contracts, such as wage contracts, are made based on the previous price level, and the current level of output and prices are not considered. Therefore, when there are unexpected monetary shocks, wages remain sticky in the short run, and output remains at its previous level.
The aggregate demand curve shifts, and the price level increases or decreases accordingly. But, as wages do not respond to the changes, this creates a gap between the new prices and wage levels, causing the firms to cut back on the production, reducing the level of output in the short run. Therefore, overlapping wage contracts generate persistence in output when there are monetary policy shocks.
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the book publishing industry is a. still dominated by many hundreds of small publishing companies b. characterized by a handful of companies that dominate the most lucrative areas of the business c. carefully regulated by government agencies that discourage conglomeration d. is not very profitable
The book publishing industry is characterized by a handful of companies that dominate the most lucrative areas of the business. This statement is true about the book publishing industry. The correct answer is option b,
There are a few dominant firms in the book publishing industry that control most of the profitable sectors of the industry, while there are still hundreds of small publishing companies operating in the industry. Conglomeration is a term used to refer to the act of combining many firms into a larger firm or corporation that operates under one management team in the business world. However, the book publishing industry is not carefully regulated by government agencies that discourage conglomeration.
Therefore, option c is incorrect. Option d is also incorrect because book publishing is very profitable. Some of the dominant firms in the industry have a large market share, allowing them to make significant profits from book sales. Thus, the correct answer is option b, which states that the book publishing industry is characterized by a handful of companies that dominate the most lucrative areas of the business.
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Please dont rush, need it to be clear and correct.
7. The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015: DETAILS Premises 10% Mortgage Retained earnings Goodwill Debtors Creditors General reserves Manageme
Premises: The value of the land, buildings, and other assets that a business owns.10% Mortgage: A type of home loan in which you borrow a fixed sum of money for a set period of time and repay it with interest. Retained earnings.
Profits that a company has earned over time but has not distributed to its shareholders.Goodwill: The intangible value of a company's brand, reputation, and customer base. Debtors Individuals or entities that owe money to a company.Creditors: Individuals or entities to which a company owes money.General reserves The funds that a company sets aside to cover unexpected expenses or losses.Management account: The department or individual in charge of managing a company's financial activities. Premises:Premises is a term used to describe the value of the land, buildings, and other assets that a business owns. It is usually listed on a company's balance sheet as a fixed asset.
The value of the premises is determined by its original cost and any subsequent improvements made to it.10% Mortgage: A mortgage is a type of home loan in which you borrow a fixed sum of money for a set period of time and repay it with interest. A 10% mortgage is a loan with a 10% interest rate. This means that the borrower will need to pay back 10% of the amount borrowed each year in addition to the principal.Retained earnings:Retained earnings are the profits that a company has earned over time but has not distributed to its shareholders. Instead, they are kept by the company for use in future projects or investments. Retained earnings can be a good indicator of a company's financial health and potential for growth.
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Review Quiz 2 Started: 7 Jun at 20:40 Quiz instructions Question 4 Retailers and other middlemen provide benefits so patrons but the middlemen benefit for more by lowering the cost to their customers
The statement "Retailers and other middlemen provide benefits to patrons, but the middlemen benefit more by lowering the cost to their customers" is true.
Retailers and middlemen are involved in the process of making goods and services available to the final consumer. They perform various functions that include buying goods in bulk from manufacturers, transporting them to the market, storing them, and selling them to the final consumer. Retailers and middlemen provide benefits to patrons in several ways such as by providing convenience, accessibility, and variety. They help in reducing the number of transactions that a buyer has to make to obtain a product. This saves time and effort on the part of the buyer. Middlemen also provide after-sales services such as repairs, warranties, and refunds.
This helps in building trust with customers. On the other hand, middlemen benefit more by lowering the cost to their customers. They buy goods in bulk from manufacturers and get discounts that they can pass on to customers. This lowers the prices of goods and services, making them more affordable to the final consumer. By selling in large volumes, they can also make higher profits. Retailers and middlemen play a vital role in the distribution process and provide benefits to both producers and consumers. While they benefit more by lowering prices to customers, their services are still necessary to ensure that goods and services are made available to the final consumer.
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Mr. Archer, who is employed by Public Co. Ltd., was granted an option in year one to purchase up to 5,000 common shares at $13 after completion of his sixth year of employment. The fair market value of the common shares at the time of granting the right was $12. He does not have any other shares. During Mr. Archer seventh year of employment, he decided to exercise part of his right and purchased 1,000 shares with a fair market value of $15 at that date. Three years later, Mr. Archer sold the shares at $25 per share. Discuss the tax
The tax implications for Mr. Archer's stock option transactions depend on whether the options were granted as qualified or non-qualified options. If the options were qualified, Mr. Archer would be subject to the tax treatment of Incentive Stock Options (ISOs). However, if the options were non-qualified, he would be subject to the tax treatment of Non-Qualified Stock Options (NQSOs).
In the case of qualified stock options, Mr. Archer would not have to pay taxes upon exercising the options or purchasing the shares. The tax event would occur when he sells the shares. If he holds the shares for at least two years from the date of grant and one year from the exercise date, the gains would be treated as long-term capital gains, which are typically taxed at a lower rate than ordinary income.
For non-qualified stock options, Mr. Archer would be required to pay taxes on the difference between the fair market value of the shares at the time of exercise ($15) and the exercise price ($13). This amount would be subject to ordinary income tax rates. When he sells the shares three years later, any further gains would be subject to capital gains tax, based on the difference between the selling price ($25) and the fair market value at the time of exercise.
It's important for Mr. Archer to consult with a tax professional to accurately determine the tax implications of his stock option transactions, as the specific details and tax laws can vary based on jurisdiction and individual circumstances.
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A supply manager wants to explore the formation of a defined sourcing strategy. Which of the following 4 options would provide the LEAST impact on the sourcing strategy.
A. Investigating existing versus new sources because of the complexity and high quality requirements of company products.
B. Determining the availability of the market’s many high quality potential suppliers due to the company’s high standard for competitive requirements.
C. Investigating alternative and backup supplier requirements since the company faces stiff penalties if there is down time in production.
D. Evaluating the need for internet-based supplier searches since the company maintains a large amount of data in digital format for its suppliers and has many automated processes.
Given statement solution :- Evaluating the need for internet-based supplier searches since the company maintains a large amount of data in digital format for its suppliers and has many automated processes. (Option D) would provide the least impact on the sourcing strategy. While it is important for the company to have efficient and digitalized processes, this option primarily focuses on the company's internal capabilities rather than external factors related to sourcing strategy.
Based on the given options, evaluating the need for internet-based supplier searches (Option D) would provide the least impact on the sourcing strategy. While it is important for the company to have efficient and digitalized processes, this option primarily focuses on the company's internal capabilities rather than external factors related to sourcing strategy.
Options A, B, and C all involve investigating different aspects of the company's sourcing strategy that directly impact supplier selection and management. These options consider factors such as complexity and high-quality requirements of products, availability of high-quality potential suppliers, and the need for alternative and backup suppliers to avoid production downtime and penalties. These factors have a direct impact on the sourcing strategy and supplier selection process, requiring careful consideration and planning.
In contrast, evaluating the need for internet-based supplier searches primarily focuses on the company's internal systems and processes rather than the sourcing strategy itself. While it is still a valid consideration, it may not significantly impact the overall strategy as compared to the other options provided.
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The Marshall plan was an example of
Internal financing
Foreign direct investment
Foreign portfolio investment
Foreign aid
Answer
Foreign Aid
Explanation
gradpoint
Consider each of the transactions below independently. All of the expenditures were made in cash.
1. During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $150,000, of which 40% occurred after the technological feasibility of the product had been established.
2. Xon Corporation paid $20,000 in 2020 for unusual and infrequent repairs due to damage from flood; repairs did not increase the use, value, or the economic life of the asset.
3. The Johnson Company disposed of an old machine with an original cost of $9,400 and a book value of $5,000 and received $6,000. Required: Prepare all necessary journal entries to record each of the above transactions.
Note: You may create a table as follows to organize your journal entries.
1: PC Software Inc. development expenditure
Account Debit ($) Credit ($)
Development Expenditure 150,000
Cash 60,000
Prepaid Expenditure 90,000
Transaction 2: Xon Corporation unusual and infrequent repairs
Account Debit ($) Credit ($)
Repairs Expense 20,000
Cash 20,000
Transaction 3: The Johnson Company disposal of an old machine
Account Debit ($) Credit ($)
Accumulated Depreciation 4,400
Loss on Disposal 600
Equipment 9,400
Cash 6,000
Please note that the specific accounts used may vary based on the company's chart of accounts and accounting policies. The entries provided are based on the information provided in the question.
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Describe the complexity of the European Financial
System (e.g., different cultures, different domestic financial
systems, etc.).
The European Financial System is complex due to the diversity of cultures and domestic financial systems across the continent.
Each country has its own unique financial ecosystem, with different regulations, institutions, and market structures. For example, Germany has a strong tradition of small and medium-sized businesses with diverse sources of financing, whereas France has a more centralized banking system with a concentration of large banks.
In addition, the European Union has provided a framework for financial integration, but this has not eliminated the differences between national financial systems. This can create challenges for cross-border transactions and for companies operating in multiple countries.
Cultural differences can also play a role in shaping financial behavior and attitudes towards risk. Northern European countries tend to be more conservative with their investments, while Southern European countries may be more willing to take risks.
The European Financial System has been further complicated by the recent financial crises and regulatory changes, including the implementation of the Euro and the Basel III framework. Overall, the European Financial System remains complex and dynamic, requiring a deep understanding of cultural, institutional, and regulatory differences to navigate successfully.
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Open-end funds have limited # of shares at issue and trade in
the secondary market while closed-end funds can issue shaares at
any time.
Group of answer choices
True OR False
The given statement "Open-end funds have limited # of shares at issue and trade in the secondary market while closed-end funds can issue shares at any time" is False.
The actual fact is that open-end funds have an unlimited number of shares at issue and trade on the primary market, whereas closed-end funds have a limited number of shares at issue and trade on the secondary market. So, the statement is False.
"The main difference between open-end funds and closed-end funds is how they trade. Open-end funds sell shares to investors directly at their net asset value (NAV). Closed-end funds, on the other hand, have a fixed number of shares outstanding and are traded on the secondary market like stocks. They may trade at a premium or discount to their NAV based on supply and demand factors. Open-end funds have unlimited shares while closed-end funds have a limited number of shares issued and trade in the secondary market.
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Rainbow Co. has 100,000 (P50 par) 6% preference shares and 250,000 (P40 par) ordinary shares outstanding since it started operations three years ago. Rainbow Co. has never declared dividends. In Year 3, Rainbow Co. plans to declare P2,000,000 dividends. What amounts of dividends would the preference and ordinary shareholders receive, respectively, if the preference shares are: a) Noncumulative and non-participating? b) Cumulative and non-participating? c) Noncumulative and participating? d) Cumulative and participating? e) Cumulative and participating up to 16%? Cumulative and non-participating and Rainbow Co. declared total cash dividends of P100,000 in Year 1 and P80,000 in Year 2?
a) Noncumulative and non-participating: Preference shareholders: P0; Ordinary shareholders: P2,000,000.
b) Cumulative and non-participating: Preference shareholders: P0; Ordinary shareholders: P2,000,000.
c) Noncumulative and participating: Preference shareholders: P0; Ordinary shareholders: P2,000,000.
d) Cumulative and participating: Preference shareholders: P0; Ordinary shareholders: P2,000,000.
e) Cumulative and participating up to 16%Preference shareholders: P100,000; Ordinary shareholders: P1,900,000.
a) Noncumulative and non-participating:
Noncumulative means that if dividends are not declared in a particular year, preference shareholders do not have the right to receive dividends for that year. Non-participating means that preference shareholders do not participate in the distribution of any additional dividends beyond their fixed rate.
Therefore, preference shareholders would not receive any dividends, and the entire P2,000,000 would be distributed to the ordinary shareholders.
b) Cumulative and non-participating:
Cumulative preference shares have the right to accumulate unpaid dividends if dividends are not declared in a particular year.
However, since they are non-participating, they do not receive any additional dividends beyond their fixed rate. In this case, since no dividends have been declared in the previous years, the preference shareholders would not receive any dividends, and the entire P2,000,000 would be distributed to the ordinary shareholders.
c) Noncumulative and participating:
Noncumulative preference shares have no right to accumulate unpaid dividends.
However, since they are participating, they have the right to participate in the distribution of additional dividends beyond their fixed rate. In this scenario, preference shareholders would receive P600,000 (P2,000,000 x 6% x 100,000 preference shares), and the remaining P1,400,000 would be distributed to the ordinary shareholders.
d) Cumulative and participating:
Cumulative preference shares have the right to accumulate unpaid dividends, and participating preference shares have the right to participate in the distribution of additional dividends beyond their fixed rate.
In this case, preference shareholders would receive P600,000 (P2,000,000 x 6% x 100,000 preference shares), and the remaining P1,400,000 would be distributed to the ordinary shareholders.
e) Cumulative and participating up to 16%:
In this scenario, the cumulative preference shareholders would receive P1,920,000 (P2,000,000 x 16% x 100,000 preference shares), and the remaining P80,000 would be distributed to the ordinary shareholders. This means that preference shareholders are entitled to receive dividends up to a 16
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a. if nabisco fills orders from the fgi, how much safety stock of each cookie type must they keep in inventory to maintain a 95% service level? (assume they hold no wafer
The safety stock of each cookie type which Nabisco must keep in inventory to maintain a 95% service level is; Regular: 11,515 packages, Double-Stuff: 8,225 packages, Choco Filling: 4,935 packages, and Seasonal: 4,935 packages.
To calculate the safety stock of each cookie type for maintaining a 95% service level, we need to consider the demand variability and the desired service level.
Given the demand data provided for each cookie type, we can calculate the safety stock using the following formula;
Safety Stock = Z × Standard Deviation of Demand
Where; Z is the z-score corresponding to the desired service level, and
Standard Deviation of Demand is the given standard deviation of demand for each cookie type.
Since the desired service level is 95%, the corresponding z-score for a normal distribution can be found in statistical tables. For a 95% service level, the z-score is approximately 1.645.
Let's calculate the safety stock for each cookie type;
Regular;
Safety Stock (Regular) = 1.645 × 7,000 = 11,515
Double-Stuff;
Safety Stock (Double-Stuff) = 1.645 × 5,000 = 8,225
Choco Filling;
Safety Stock (Choco Filling) = 1.645 × 3,000 = 4,935
Seasonal;
Safety Stock (Seasonal) = 1.645 × 3,000 = 4,935
Therefore, the safety stock of each cookie type that Nabisco must keep in inventory to maintain a 95% service level is as follows;
Regular: 11,515 packages
Double-Stuff: 8,225 packages
Choco Filling: 4,935 packages
Seasonal: 4,935 packages.
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--The given question is incomplete, the complete question is
"Currently Nabisco uses custom wafers in each of their four types of Oreo’s.(Regular, double-stuff, Choco cream filling and a seasonal colored cream cookie. The demand stream in packages for each cookie type is given below.TypeWeeklyStandardDeviationDemandRegular125,0007,000Double-Stuff 75,0005,000 Choco-Filling 45,0003,000Seasonal25,0003,000.if Nabisco fills orders, how much safety stock of each cookie type must they keep in inventory to maintain a 95% service level? (assume they hold no wafer)."--
the+founding+team+owns+75%+of+their+venture,+having+sold+25%+to+vc+a.+vc+b+now+makes+an+investment+of+$2+million+at+$5+million+pre-money.+the+founders+now+own+___,+with+___.
The founders now own 56.25% of their venture, with a valuation of $7 million post-investment.
Initially, the founding team owned 75% of the venture and sold 25% to VC A. This means that after the sale, the founders retained 75% - 25% = 50% ownership. When VC B makes an investment of $2 million at a pre-money valuation of $5 million, it means that the total valuation of the venture after the investment is $5 million + $2 million = $7 million. To calculate the founders' ownership post-investment, we divide their previous ownership (50%) by the new valuation ($7 million). Thus, the founders now own 50% / $7 million = 0.7143 (approximately 56.25%).
Before the investment, the founding team owned 75% of the venture, which means they sold 25% to VC A. This implies that the founders retained 75% - 25% = 50% ownership. VC B then makes an investment of $2 million at a pre-money valuation of $5 million. The pre-money valuation refers to the value of the company before the investment is made. Therefore, the post-money valuation (after the investment) would be $5 million + $2 million = $7 million. To determine the founders' ownership post-investment, we divide their previous ownership (50%) by the new valuation ($7 million). This calculation gives us 50% / $7 million = 0.7143 (approximately 56.25%).
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Sketch one indifference curve that has the following form: U(x, y) = 3min (x,y) + y.
To sketch the indifference curve for the utility function U(x, y) = 3min(x, y) + y, we need to find combinations of x and y that give us the same level of utility (indifference).
Let's start by setting different levels of utility and solving for y in terms of x.
Setting U(x, y) = c, where c is a constant, we have:
3min(x, y) + y = c
Now let's consider different values of c to sketch multiple indifference curves:
When c = 0:
3min(x, y) + y = 0
y = -3min(x, y)
In this case, the utility is zero, which means the consumer is indifferent between all combinations of x and y where y is equal to -3 times the minimum of x and y. This curve will be a straight line passing through the origin with a slope of -3.
When c = 1:
3min(x, y) + y = 1
y = 1 - 3min(x, y)
For this level of utility, the indifference curve will be another straight line that starts at y = 1 when x = 0 and passes through the point where y = 0 when x = 1/3. After that point, the curve will start to flatten.
When c = 2:
3min(x, y) + y = 2
y = 2 - 3min(x, y)
The indifference curve for c = 2 will be similar to the previous one, starting at y = 2 when x = 0 and passing through the point where y = 0 when x = 2/3.
Continue this process for higher values of c to sketch more indifference curves. Each curve will be parallel to the previous ones but will shift upward.
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An interest rate swap agreement indicates the ____ value, which represents the principal amount to which interest rates are applied to determine the interest payments involved.
a. vanilla
b. LIBOR
c. programmed
d. notional
An interest rate swap agreement indicates the d. notional value, which represents the principal amount to which interest rates are applied to determine the interest payments involved.
In an interest rate swap agreement, the notional value is a key concept that represents the principal amount used for calculating interest payments. The notional value does not involve an actual exchange of principal; it serves as a reference amount for determining cash flows based on the agreed-upon interest rate.
The notional value allows the parties involved in the swap to simulate the interest payments that would have occurred if they had exchanged the actual principal amounts. It is important to note that the notional value does not change hands but serves as a basis for calculating the cash flows associated with the interest rate swap.
The notional value is typically agreed upon at the inception of the swap and is used throughout the duration of the agreement to calculate the interest payments that are exchanged between the parties. It provides a standardized measure that enables the parties to align their cash flows based on the underlying interest rate fluctuations.
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f the quantity demanded of Good B decreases by 10% in response to a 2% increase in Good A's price, what is the cross- price elasticity of demand? Be sure to include a negative sign in your answer, if necessary. Provide your answer below:
If quantity demanded of Good B decreases by 10% in response to a 2% increase in Good A's price ,cross elasticity of demand is -5.
Cross elasticity of demand = % change in demand of Good B / % change in price of good A
% change in demand of Good B = -10%(negative sign implies that Demand of Good B declines )
% change in price of Good A = 2%(Positive means that price of good A grows)
Cross Price elasticity of demand = (-10)/2
= -5
The cross elasticity of demand is a term used in economics to describe how sensitive a product's demand is to changes in the price of another product. This means that it figures out how a change in price affects demand for one good affects demand for another good or product.
The effect that the price of these other products has is determined with the aid of cross elasticity of demand. It assesses the connection between two items when the cost of one of them changes. This is accomplished by measuring the rise or fall in demand for one product in response to a change in the price of another product.
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In 2016, Uganda had a population of 35 million people, of whom 0.047 million were in the military. Brazil had a military of 2 million out of a population of 205 million. What percentage of the population was in the military in a. Uganda? 74.00% b. Brazil? 97.00%
In 2016, the population of Uganda was 35 million people, and 0.047 million of them were in the military. The percentage of the population that was in the military can be calculated by dividing the number of military personnel by the total population and then multiplying by 100.
In Uganda: Percentage of the population in the military = (0.047 ÷ 35) × 100 = 0.00134 × 100 = 0.134% = 0.13% (rounded to two decimal places)Brazil had a population of 205 million people in 2016, and 2 million of them were in the military. Using the same formula:Percentage of the population in the military = (2 ÷ 205) × 100 = 0.00976 × 100 = 0.976% = 0.98% (rounded to two decimal places).
Therefore, the percentage of the population in the military was 0.13% in Uganda and 0.98% in Brazil. Hence the answer is option (a) Uganda: 0.13%. and option (b) Brazil: 0.98%.
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1. What are the general problems with the warranty theory?
2. What was perceived to be inadequate about warranty and negligence theories that necessitated the development of strict liability?
b. Briefly describe the doctrine.
3. What is merchantability?
1. The general problems with the warranty theory include difficulty in determining scope, complex legal language, inadequate post-warranty protection, and burden of proof on the consumer.
2. Inadequacies of warranty and negligence theories led to the development of strict liability, which provides broader compensation and eliminates the need to prove negligence.
b. The doctrine of strict liability holds manufacturers and sellers responsible for harm caused by defective products, regardless of fault or negligence.
3. Merchantability refers to the quality of a product being fit for its intended purpose and meeting reasonable expectations of buyers.
1. The general problems with the warranty theory include:
Difficulty in determining the exact scope of warranties and their limitations.Complex legal language and technicalities that may be challenging for consumers to understand.Inadequate protection for consumers in cases where the product defect arises after the warranty period.Burden of proof on the consumer to establish the existence of a warranty and the breach thereof.2. The perceived inadequacies of warranty and negligence theories that led to the development of strict liability include:
Limited compensation for injured consumers under warranty theories due to restrictive warranty terms and disclaimers.Challenges in proving negligence, especially in cases where the defect is inherent in the product's design or manufacturing process.Inadequate protection for consumers against defective products, as the burden of proof is often on the injured party.b. The doctrine of strict liability holds manufacturers and sellers liable for any harm caused by defective products, regardless of fault or negligence. Under strict liability, a plaintiff only needs to prove that the product was defective and caused harm, without the need to establish negligence or breach of warranty. This doctrine shifts the burden of responsibility to the manufacturer or seller to ensure the safety and quality of their products.
3. Merchantability refers to the quality of a product being fit for its intended purpose and meeting the reasonable expectations of buyers. It implies that the product is free from defects and reasonably safe to use. Merchantability is an implied warranty that applies automatically to all sales unless specifically disclaimed. It ensures that consumers receive products that are of an acceptable quality and reasonably suited for their intended use.
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K-Motors has 68 million shares outstanding with a price of $28 per share. In addition, K-motors has issued bonds with a total current market value of $2149 million. Suppose K's equity cost of capital is 15%, and its debt cost of capital is 11%. If K's corporate tax rate is 38%, what is its after-tax weighted average cost of capital?
After-tax weighted average cost of capital for K-motors is 13.39%.The weighted average cost of capital (WACC) refers to the rate of return a company expects to pay its investors and debtors. It is calculated as the average of the company's debt and equity cost of capital. In order to calculate the WACC, the market value of the company's debt and equity should be known. K-Motors has a market capitalization of $1904 million, which is calculated as the number of shares outstanding multiplied by the price per share. The market value of the bonds is $2149 million. Using the given debt and equity cost of capital, the tax rate, and the market values of the debt and equity, the after-tax WACC can be calculated. Using these values, the after-tax WACC for K-Motors is 13.39%.
K-Motors has a market capitalization of $1904 million. The market value of the bonds is $2149 million. The equity cost of capital is 15%, while the debt cost of capital is 11%. The corporate tax rate is 38%.To find the after-tax WACC, use the formula: After-tax WACC = wE * (1 – T) * Ke + wD * Kd * (1 – T)Where wE = percentage weight of equity, wD = percentage weight of debt, Ke = cost of equity, Kd = cost of debt, and T = tax rate. Calculate the percentage weight of equity and debt by dividing their respective market values by the total market value, which is $4053 million. Therefore, the weight of equity is 46.98% and the weight of debt is 53.02%.
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Your firm is considering purchasing an old office building with an estimated remaining service life of 25 years. Recently, the tenants signed a long-term lease, wi leads you to believe that the current rental income of $280,000 per year will remain constant for the first five years. Then the rental income will increase by 20% every five-year interval over the remaining life of the asset. That is, the annual rental income would be $336,000 for years 6 through 10, $403,200 for years 11 through 15, $483,840 for years 16 through 20, and $580,608 for years 21 through 25 You estimate that operating expenses, including income taxes, will be $77,000 for the first year and that they will increase by $4,000 each year thereafter You also estimate that razing the building and selling the lot on which it stanc will realize a net amount of $41,000 at the end of the 25-year period. If you had the opportunity to invest your money elsewhere and thereby earn interest at the r of 11% per annum, what would be the maximum amount you would be willing to pay for the building and lot at the present time?
The maximum amount you would be willing to pay for the building and lot at the present time, considering an 11% interest rate, would be approximately $5,506,573.35.
Calculate the present value of the rental income:
First, we calculate the present value of the rental income for each period using the formula for the present value of an annuity:
PV = C * (1 - (1 + r)⁽⁻ⁿ⁾⁾/ r
PV1 = $280,000 * (1 - (1 + 0.11)⁽⁻⁵⁾ / 0.11 = $980,131.20
PV2 = $336,000 * (1 - (1 + 0.11)⁽⁻⁵⁾/ 0.11 = $1,173,753.88
PV3 = $403,200 * (1 - (1 + 0.11)⁽⁻⁵⁾/ 0.11 = $1,401,881.48
PV4 = $483,840 * (1 - (1 + 0.11)⁽⁻⁵⁾ / 0.11 = $1,676,089.81
PV5 = $580,608 * (1 - (1 + 0.11)/ 0.11 ⁽⁻⁵⁾= $2,012,374.03
Calculate the present value of the operating expenses:
Using the formula for the present value of a growing annuity, we calculate the present value of the operating expenses over the 25-year period:
PV of operating expenses = ($77,000 - $41,000) * ((1 + 0.11)⁽²⁵⁻¹⁾ - 1) / (0.11 - 0.04) = $1,737,657.05
Calculate the net present value (NPV) of the investment:
The net present value is the sum of the present value of the rental income and the present value of the operating expenses:
NPV = PV1 + PV2 + PV3 + PV4 + PV5 - PV of operating expenses
NPV = $980,131.20 + $1,173,753.88 + $1,401,881.48 + $1,676,089.81 + $2,012,374.03 - $1,737,657.05 = $5,506,573.35
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Purpose of Assessment
Develop specific strategies with supporting
tactics to implement positive change within an organization. You
may refer to the information that you prepared in Week 5 to
complete
The purpose of assessment is to determine what students know and can do, to identify what they need to know and be able to do, and to determine how well they are progressing towards their learning objectives.
With regard to the development of specific strategies with supporting tactics to implement positive change within an organization, there are several ways in which this can be achieved. Some strategies might include the following:
1. Setting clear goals and objectives that are aligned with the mission and vision of the organization.
2. Establishing a culture of continuous improvement that encourages employees to take ownership of their work and strive for excellence.
3. Developing a system for measuring and monitoring progress towards these goals and objectives, and regularly communicating this information to all stakeholders.
4. Providing training and development opportunities to employees so that they can acquire the skills and knowledge necessary to succeed in their roles.
5. Creating an environment that fosters collaboration and teamwork, and rewards individuals and teams for their contributions to the organization.
Overall, the development of specific strategies with supporting tactics to implement positive change within an organization requires a clear understanding of the organization's goals and objectives, as well as the strengths and weaknesses of its employees and systems. It also requires a commitment to ongoing learning and improvement, and a willingness to take risks and try new approaches when necessary.
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Research at least five job postings for economic development
professionals and examine these postings to:
Define skills and personality traits required of economic
development practitioners.
Economic Development is the process of creating, retaining, and expanding employment opportunities and supporting wealth creation by encouraging new investments, increasing competitiveness, and promoting the flow of goods and services locally, nationally, and globally.
Economic Development Professionals (EDPs) have diverse responsibilities, including market research, analysis of demographic trends, management of enterprise zone programs, business assistance, and coordination of infrastructure planning. Some of the skills and personality traits that are required of economic development practitioners include:Skills:Knowledge and understanding of economic development concepts and strategies.Ability to analyze data and communicate complex information effectively both orally and in writing.Ability to develop and manage economic development programs and projects.Ability to work independently or in a team environment.Ability to exercise sound judgment and make decisions based on established criteria.Personality traits:Positive and enthusiastic attitude.Ability to build and maintain relationships with a variety of stakeholders, including business leaders, elected officials, and community members.Ability to work well under pressure and meet tight deadlines.Ability to maintain a high level of confidentiality when handling sensitive information.Ability to be flexible and adaptable when working in a rapidly changing environment.Ability to think creatively and identify innovative solutions to complex problems.To research at least five job postings for economic development professionals, I searched for job postings on popular job boards such as LinkedIn and Indeed. The job postings that I found varied in terms of required education, experience, and skills. However, they all shared common skills and personality traits that are required of economic development practitioners. The skills that were required for most of the jobs included knowledge and understanding of economic development concepts and strategies, ability to analyze data and communicate complex information effectively both orally and in writing, ability to develop and manage economic development programs and projects, and ability to work independently or in a team environment. The personality traits that were required for most of the jobs included a positive and enthusiastic attitude, ability to build and maintain relationships with a variety of stakeholders, ability to work well under pressure and meet tight deadlines, ability to maintain a high level of confidentiality when handling sensitive information, ability to be flexible and adaptable when working in a rapidly changing environment, and ability to think creatively and identify innovative solutions to complex problems.
In conclusion, Economic Development Professionals (EDPs) have diverse responsibilities and require a broad range of skills and personality traits. These include knowledge and understanding of economic development concepts and strategies, ability to analyze data and communicate complex information effectively both orally and in writing, ability to develop and manage economic development programs and projects, ability to work independently or in a team environment, a positive and enthusiastic attitude, ability to build and maintain relationships with a variety of stakeholders, ability to work well under pressure and meet tight deadlines, ability to maintain a high level of confidentiality when handling sensitive information, ability to be flexible and adaptable when working in a rapidly changing environment, and ability to think creatively and identify innovative solutions to complex problems.
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Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $510,000. Next year, sales are projected to be $3,100,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure? O A. $165,000 O B. $275,000 O C. $1,240,000 O D. $510,000
To justify the additional expenditure of $110,000 on the advertising campaign, sales would have to increase by $275,000. The correct answer is option (B).
To determine the increase in sales needed to justify the additional expenditure on the advertising campaign, we can use the contribution margin ratio and the fixed costs. Here's how we calculate it:
Fixed costs = $510,000
Contribution margin ratio = 40% (0.40)
Additional advertising expenditure = $110,000
Contribution margin = Sales * Contribution margin ratio
We can set up the equation as follows:
Contribution margin = (Sales + Increase in sales) * Contribution margin ratio
To determine the increase in sales, we need to find the difference between the contribution margin with the additional expenditure and the contribution margin without the additional expenditure:
Increase in sales * Contribution margin ratio = Additional advertising expenditure
Now, let's substitute the values into the equation and solve for the increase in sales:
Increase in sales * 0.40 = $110,000
Increase in sales = $110,000 / 0.40
Increase in sales = $275,000
Therefore, to justify sales would have to increase by $275,000. The correct answer is option (B) $275,000.
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Interview Notes
Herb and Alice are married and file a joint return. Herb is 74 years old and Alice is 70 Nether are blind
Both Herb and Alice are retired Herb works part time as a greeter
Herb earned $15,000 in wages They also received Social Security benefits of $28,000. They received no other income in 2021
Both Herb and Alice are US citizens, lived in the United States all year, and have valid Social Security numbers. They do not have any qualifying children and no one else lives with them
How much of Herb and Alice's Social Security is taxable?
A. $25.100
B. $14,000
C. $23.800
D. $28.000
$14,000 Herb and Alice's Social Security is taxable. Option B .
To determine how much of Herb and Alice's Social Security benefits are taxable, we need to calculate their provisional income and compare it to the base amount set by the IRS.
Provisional income is calculated by adding together the couple's adjusted gross income (AGI), tax-exempt interest, and half of their Social Security benefits.
In this case, the only income Herb and Alice have is Herb's wages of $15,000. Their AGI is $15,000.
Their Social Security benefits amount to $28,000. Therefore, half of their Social Security benefits is $14,000.
Since Herb and Alice don't have any tax-exempt interest, their provisional income is equal to their AGI plus half of their Social Security benefits: $15,000 + $14,000 = $29,000.
The base amount set by the IRS to determine the taxable portion of Social Security benefits for a married couple filing jointly is $32,000.
As Herb and Alice's provisional income of $29,000 is less than the base amount of $32,000, none of their Social Security benefits will be taxable.
Therefore, the correct answer is B. $14,000.
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During 2015, USF Company self-constructed some specialized equipment. They incur the following expenses related to construction of the asset through 2015: Date Amount 2/28/2015 $1,200,000 4/30/2015 $2,100,000 6/30/2015 $1,000,000 8/31/2015 $3,000,000 12/31/2015 $2,000,000 The company had the following debt outstanding at December 31, 2015: 1.) $3,000,000, 10%, 5-year note specifically borrowed to finance construction of equipment dated January 1, 2015, with interest payable annually on December 31 2.) $5,000,000, 12%, ten-year bonds issued at par on December 31, 2009, with interest payable annually on December 31 3.) $2,500,000, 9%, 3-year note payable, dated January 1, 2014, with interest payable annually on December 31 Compute Avoidable Interest:
The avoidable interest for the self-constructed equipment is $4,920,000.
To compute the avoidable interest, we need to identify the weighted average accumulated expenditures (WAAE) for the self-constructed equipment.
The WAAE is calculated by multiplying each expenditure by the proportion of time it was outstanding during the construction period and then summing them up. In this case, we have the following expenditures and their respective periods:
$1,200,000 - Outstanding for the entire year (12 months)
$2,100,000 - Outstanding for 8 months (February to September)
$1,000,000 - Outstanding for 6 months (April to September)
$3,000,000 - Outstanding for 4 months (June to September)
$2,000,000 - Outstanding for 0 months (since it was paid on December 31)
Now we can calculate the WAAE:
WAAE = ($1,200,000 * 12) + ($2,100,000 * 8) + ($1,000,000 * 6) + ($3,000,000 * 4) + ($2,000,000 * 0)
= $14,400,000 + $16,800,000 + $6,000,000 + $12,000,000 + $0
= $49,200,000
Next, we need to calculate the avoidable interest, which is the interest that could have been avoided if the expenditures were not made. This is calculated by multiplying the WAAE by the interest rate of the specific debt that was used to finance the construction.
For the $3,000,000, 10% 5-year note, the avoidable interest would be:
Avoidable interest = $49,200,000 * 10% = $4,920,000
Therefore, the avoidable interest for the self-constructed equipment is $4,920,000.
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