Answer:
False
Explanation:
An Adjustable Rate Mortgage is the opposite: it is a type of mortgage that has payments that vary throughout the period of loan. They vary according to some index, variable rate, or agreement between the loaner and the borrower.
Sally and Tom should seek a Fixed Rate Mortgage instead. That is a type of mortgage whose payments do not vary across the life of the loan. In other words, a Fixed Rate Mortgage is an annuity.
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $8,000 Direct labor 3,100 Manufacturing overhead 2,500 Selling expense 7,000 Last month, 5,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. Direct materials Direct labor Manufacturing overhead Selling expense 2. What is the total product cost for last month
Answer:
See below
Explanation:
1. Classify each of the products as period or product cost .
Direct materials - Product cost
Direct labor - Product cost
Manufacturing overhead - Product cost
Selling expense - Period cost
2. The total product cost for last month is calculated as;
= Direct materials + Direct labor + Manufacturing overhead
= $8,000 + $3,100 + $2,500
= $13,600
Therefore, total product cost for last month is $13,600
Stoneside Inc. has provided you with the following information for its Manufacturing Overhead account at the end of the period. Actual manufacturing overhead costs incurred total $31,910. The company applied manufacturing overhead cost in the amount of $28,900. What is the overapplied or underapplied manufacturing overhead
Answer:
Under applied overhead of $3,010
Explanation:
Actual manufacturing overhead
$31,910
Less:
Applied manufacturing overhead
($28,900)
Under applied overhead
$3,010
The difference between actual overhead incurred and the overhead applied is under applied or over applied manufacturing overhead.
With regards to the above, it is under applied manufacturing overhead because applied overhead is less than actual overhead.
Jack works for Red, Blue and Green CPAs. Each year Red, Blue and Green asks Jack to fill out a form indicating all of his financial interests and those of his family members and close friends. Red, Blue and Green uses these charts to ensure that their auditors comply with the independence standards as described by the AICPA Code of Professional Conduct.Code of Professional Conduct contains examples of situations that may impair an auditor's independence. Relationships are divided into three categories for purposes of the interpretations: immediate family, close relatives, and other relatives and friends. It is important for an auditor to understand how existing relationships fit into these categories so that the auditor can determine if there is an effect on his or her independence. Understanding of relationships is of primary importance to understanding the auditor's Code of Professional Conduct regarding independence. Place the following relationships into the appropriate category.1. Immediate Family2. Close Relative3. Other Relative or Frienda. Dependent b. Childc. Father d. Cousine. Spouse f. Sisterg. Golfh. Partneri. Spouse j. Equivalentk. Brother l. Niecem. Dependent n. Parento. Motherp. Nephewq. Independent r. Childs. College t. Friendu. Grand fatherRoommate
Answer:
1.Immediate Family:
Spouse
Dependent Child
Dependent Parent
Spouse Equivalent
2.Close Relatives:
Sister
Brother
Father
Mother
Grand Father
Independent Child
3.Other Relatives and Friends:
Niece
Nephew
Cousin
Golf Partner
College Friend
Roommate
Explanation:
AICPA code of professional conduct are standards that are followed by CPA professionals. It is important and necessary for CPA professionals to understand the rules and standard of professional guidance and abide by them. There are two major sections of Code of Professional Conduct:
1. Rules
2. Standards
Rules are enforceable and required to be followed. Standards are the guidance which helps to make decision in certain situations.
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.
If free trade exists between the countries, then each country will benefit if
a. England exports scones, Scotland exports sweaters.
b. England exports sweaters, Scotland exports scones.
c. both countries export scones.
d. given the production possibilities, both countries will not benefit from trade.
Answer:
A
Explanation:
The country with a comparative advantage in the production of a good should export the good
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
England
Comparative advantage in the production of scones = 1/50 = 0.02
Comparative advantage in the production of sweater = 50/1 = 50
Scotland
Comparative advantage in the production of scones = 2/40 = 0.05
Comparative advantage in the production of sweater = 40/2 = 20
England has a comparative advantage in the production of scones and should export scones
Scotland has a comparative advantage in the production of sweaters and should export sweaters
In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000. Assume the relevant interest rate is 3%, there is no growth in wages, and you are expected to retire at 65 years old after you graduate high-school. (a): Suppose you are a 18 year old graduating high school senior deciding whether or not to go to college. What is the present discounted value of your labor earnings if you chose not to attend college
Answer:
$1,010,668
Explanation:
if you choose not to attend college, you should be working for 65 - 18 = 47 years
your expected annual salary is $40,000
the present value of your future earnings = $40,000 x PV annuity factor
PV annuity factor = = [1 - 1/(1 + i)ⁿ] / i = [1 - 1/(1 + 0.03)⁴⁸] / 0.03 = 25.2667
present value of future earnings = $40,000 x 25.2667 = $1,010,668
The Pioneer Company has provided the following account balances: Cash $39,800; Short-term investments $5,800; Accounts receivable $7,800; Supplies $57,000; Long-term notes receivable $3,800; Equipment $105,000; Factory Building $198,000; Intangible assets $7,800; Accounts payable $28,200; Accrued liabilities payable $3,100; Short-term notes payable $17,600; Long-term notes payable $101,000; Common stock $198,000; Retained earnings $77,100. What are Pioneer's total current assets
Answer:
Pioneer's total current assets are $110,400.
Explanation:
Pioneer's total current assets can be calculated using the following formula:
Current assets = Cash + Short-term investments + Accounts receivable + Supplies ............... (1)
Where;
Cash = $39,800
Short-term investments = $5,800
Accounts receivable = $7,800
Supplies = $57,000
Substituting the values into equation (1), we have:
Current assets = $39,800 + $5,800 + $7,800 + $57,000 = $110,400
You are writing a report on the effectiveness of upper-management meetings in your company. Your first step is to determine whether to conduct an interview, carry out an observation, or administer a survey. You decide to observe one or two meetings to obtain primary data. You arrive late for the first meeting and walk into the room unannounced. What observation rule should you have followed
Answer:
Arrive early and obtain permission to observe
Explanation:
As a profession it is important to plan in advance also it is needed to demonstrate yourself in terms of an attitude and behavior this includes the organizing of the task and aimed to delivered the work by maintaining the high quality in order to meet out the objectives. In order to work effectively it is very significant to be on time.
In the given case, you have to arrive early so that you can give the brief introduction of yourself that obtain the permission for observing and shows the professionalism
1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. Which of the following best describes the reason RTE Telecom Inc. has decided to go global? To avoid political, trade, and regulatory hurdles To seek production efficiency To broaden its markets Now consider the case of Blue Moose Producers. To conceal its trade secrets, Blue Moose Producers has decided to invest abroad instead of licensing to local foreign firms. Blue Moose Producers has decided to go global in order to . Companies go global for various reasons. Although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: Compared to domestic corporations, multinational corporations have exposure to risks that arise from complex tax laws and multiple money markets.
Answer:
1. To avoid political, trade, and regulatory hurdles
2. protect processes and product
3. increased
Explanation:
RTE Telecom Inc. moved some of their facilities to Japan because they wanted to go around certain government regulations which means that they left to avoid regulatory hurdles.
In investing abroad instead of licensing to local firms, Blue Moose hopes to conceal its trade secrets. They therefore went global in order to protect the processes by which they make their products.
3. Compared to domestic corporations, multinational corporations have increased exposure to risks that arise from complex tax laws and multiple money markets.
Companies in various countries will be exposed to different tax laws, some of which will be more complicated than that of their home countries. They will also face different money market situations arising from the various currencies they encounter.
They therefore have a higher exposure to risks that emanate from these than domestic companies.
Sunland Company, has 14700 shares of 4%, $100 par value, cumulative preferred stock and 60200 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $113000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021
Answer:
2021 Common Stockholders dividends = $49,600
Explanation:
Preference Shareholders are always paid their dividends first before Common Stockholders. If dividend is not declared, Preference dividends are cumulated to the next period and are due !
2019
Preferred Stockholders Dividends = 14700 x $100 x 4% = $58,800
Common Stockholders dividends = $ 0
2020
Preferred Stockholders Dividends = $58,800 (2019) + $54,200 (2020)
Common Stockholders dividends = $0
2021
Preferred Stockholders Dividends = $4,600 (2020 arrears) + $58,800 (2021) = $63,400
Common Stockholders dividends = $113,000 - $63,400 = $49,600
Assume that, compared with other nations, the country of New Bispo has a higher opportunity cost in the production of automobiles and a lower opportunity cost in the production of televisions. Determine whether the statements below are true or false.
a. Without trade, if the people of New Bispo want automobiles and televisions, New Bispo will produce its own automobiles and televisions.
b. With specialization and trade, New Bispo can obtain one or more automobiles from another nation by trading some of its televisions for automobiles.
c. New Bispo should specialize in producing the items in which it has a higher opportunity cost compared to other nations.
d. Without trade, the opportunity cost for New Bispo of producing more automobiles is fewer televisions.
e. With specialization and trade, the combinations of automobiles and televisions that New Bispo can consume are limited to points below the production possibility frontier.
Solution :
Statement a is TRUE.
-- As without trade, a country will consume what the country produces in its country. So the country, New Bispo will have to produce their own television and automobiles as they are operating under autarky.
Statement b is TRUE.
-- The country New Bispo has a comparative advantage than the other countries in production of television. Specialization as well as trade makes the country to exchange its best products(television) for some other goods(i.e. automobiles) and benefited from it.
Statement c is FALSE.
-- The statement is false as the when a country produces more of products in which it specializes and also has a lower opportunity cost, it provides for the maximum benefit. So by using specialization, the country can concentrate on production of a single item at a time that it can do its best.
Statement d is TRUE.
-- The opportunity cost for the production of automobiles is high for New Bispo, therefore, it indicates that a country will produce more of automobiles but it has to lower down its television production.
Statement e is FALSE.
-- The statement is false as the points that lies outside the curve can be attained with the resources and technology that are already existing if the trade occurs with the outside producer. The trade makes it enable to consume outside the production possibility frontier. So with trade and specialization, New Bispo are able to consume automobiles as well as television as they can operate beyond the PPC frontier.
Explain what answer he came to and why. Next, discuss the approach human resource management should take toward organizational social responsibility. Finally, cite one real-life example of a company implementing social responsibility that is not mentioned in the video or the course textbook. Be sure to be factual and to fully support your answer.
Explanation:
The management of human resources in a globalized society, must be focused on the inclusion and protection of diversity. Organizational social responsibility includes protecting the individual rights of each individual regardless of their culture or individual values.
A socially and environmentally responsible company is one that is concerned with its internal and external environment, adopting the best current practices for the protection and development of the society in which it operates and the environment.
A company that implements social responsibility is the Brazilian agribusiness company Amaggi, which has the potential to cause negative impacts on the environment, but which develops environmental protection programs and contains ISO environmental certifications for the adoption of continuous environmental improvement practices, as well as the creation of subsidy and protection programs for local farmers.
On January 2, 2020, Coronado Industries began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 610000 September 1, 2020 1800000 December 31, 2020 1800000 March 31, 2021 1800000 September 30, 2021 1203000 Coronado Industries borrowed $3280000 on a construction loan at 13% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12480000 in 10% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was:
Answer:
$157,300
Explanation:
The computation of the interest capitalized is as follows:
= Accumulated expenditure × rate of interest
= ($610,000 × 12 months ÷ 12 months) + ($1,800,000 × 4 months ÷ 12 months) + 0 × 13%
= ($610,000 + $600,000) × 13%
= $1,210,000 × 13%
= $157,300
which business function is not present in case of a certain type of business?
Due to the nature of its work the (production, finance, human resources) function does not exist in case of a (oil refinery, supermarket, construction company)
Answer:
Due to the nature of its work, the production function does not exist in case of a supermarket
Explanation:
Due to the nature of its work, the production function does not exist in the case of a supermarket.
What are Human Resources?The department of a company tasked with finding, vetting, hiring, and training job applicants is known as human resources (HR). Additionally, it manages benefit plans for employees.
These tactics are collectively known as human resource management (HRM) methods. A holistic approach to managing people as well as the culture and environment of an organization is HRM. It focuses on the hiring, supervision, and overall management of the workforce in an organization.
Some businesses have outsourced some of the more conventional administrative, transactional HR tasks since the middle of the 20th century in an effort to free up the department to suggest and execute more valuable, value-adding programs that have a beneficial influence on the business.
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All you need to know to do your taxes is your gross income.
True or False
Answer: Taxable income starts with gross income, then certain allowable deductions are subtracted to arrive at the amount of income you're actually taxed on. Tax brackets and marginal tax rates are based on taxable income, not gross income.
sooo no
What are spot rates and forward rates? Purple Panda Importers, a U.S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for ¥625 million, but the Japanese firm has 60 days before it must make the payment to Purple Panda Importers The spot exchange rate is ¥132.78 per dollar, and the 60-day forward rate is ¥134.72 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U.S. dollar? The yen is trading at a discount in the forward market. In the forward market, the yen is trading at a premium. If the customer pays Purple Panda Importers the ¥625 million today, how much will Purple Panda Importers receive in dollars? $5.42 million $4.24 million $5.89 million $4.71 million Assuming that the forward market is correct and the spot exchange rate in 60 days will equal the 60-day forward exchange rate today, Purple Panda Importers would get more dollars if the Japanese firm paid off its account .
Answer:
1. As you have to spend more Yens for 1 USD at future date, it means that Yen is selling at discount in the forward market relative to the US Dollar.
2. The spot exchange rate is ¥132.78 per dollar, hence, total dollars Purple Panda Importers will receive today is ¥625 million/¥132.78 = $4.71 million
3. Purple Panda Importers would get more dollars if the Japanese firm paid off its account today.That is, he will get more money if the account is paid today.
Sheridan Company reported net income of $178,690 for 2022. Sheridan Company also reported depreciation expense of $32,350 and a loss of $4,690 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,240 for the year, a $15,590 increase in accounts payable, and a $4,050 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Sheridan Company
The operating activities section of the Statement of Cash Flows for the year ended December 31, 2022:
Adjusted cash from operations $215,730
Accounts Receivable (14,240)
Accounts Payable 15,590
Prepaid Expenses (4,050)
Net net cash from operating activities $213,030
Explanation:
a) Data and Calculations:
Net income for 2022 = $178,690
add non-cash expenses:
Depreciation expense 32,350
Loss on plant disposal 4,690
Adjusted cash $215,730
b) The Operating Activities section of the Statement of Cash Flows is one of the three main sections of the Statement of Cash Flows. It summarizes operating activities or the main activities of Sheridan Company. The other activities are the investing and financing activities section, which deal with Sheridan's purchase and sale of investments in long-term assets and the sources and uses of funds respectively.
Sheffield Corp. purchased land as a factory site for $1360000. Sheffield paid $116000 to tear down two buildings on the land. Salvage was sold for $8500. Legal fees of $5400 were paid for title investigation and making the purchase. Architect's fees were $46300. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15540. The contractor was paid $4500000. An assessment made by the city for pavement was $9500. Interest costs during construction were $252000. The cost of the land that should be recorded by Sheffield Corp. is $1486300. $1490900. $1476800. $1500400.
Answer:
a. $1,486,300
Explanation:
Particulars Amount
Purchase cost $1,360,000
Cost to tear down two buildings $116,000
Salvage -$8,500
Legal fees $5,400
Title insurance $3,900
Assessment cost $9,500
Cost of the land $1,486,300
The data processing cycle consists of four steps. Draw all the steps.
Answer:
Explanation:
The four steps in the data processing cycle are the following input, processing, output and storage. The information is first entered into system where it is then processed by the system. Once the information is processed and understood by the system it is then saved in a database. From the database it is then grabbed by the system and sent as an output to where it is needed. This is all illustrated in the drawing attached below.
Which of the following is disclosed separately in a statement of cash flows using the indirect method?
A. Cash received from customers
B. Cash paid to employees and other suppliers
C. Increase in retained earnings for the period
D. Net income
Answer:
C. Increase in retained earnings for the period
Explanation:
The Standard that deals with the Presentation and discloser of Cash flow statement (IAS7) requires that the items that do not involve the use of cash must be disclosed separately. That means item C , increases in retained earnings for the period is disclosed separately since it does not involve the use of cash.
A statement of cash flows is refer to the financial statement that shows how changes are made in the balance sheet accounts and how income affect cash and cash equivalents.
A statement of cash flows
Correct option is C.
In indirect method no general cash receipts ad cash payments in operating cash flow is shown, it relates to displaying adjustments in net income, and changes in working capital etc.
In indirect method the accountant adjust various factors like non cash transactions from the net income of the year.
Therefore, Correct option is C.
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Jing Associates, LLC, a large law firm in Denver, is building a new office complex. To pay for the construction, Jing Associates is selling a security that will pay the investor the lump sum of $38,600 in nine years. The current market price of the security is $16,429. Assuming that you can earn an annual return of 8.25% on your next most attractive investment, how much is the security worth to you today
Answer:
PV= $18,911.94
Explanation:
Giving the following information:
Future Value= $38,600
Interest rate= 8.25%
Number of periods= 9 years
To calculate the present value of the security, we need to use the following formula:
PV= FV / (1+i)^n
PV= 38,600 / (1.0825^9)
PV= $18,911.94
If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be
Answer:
Less than average total Cost
Explanation:
Average total cost can be estimated as
(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular. For each of the following situations, identify which function of money is emphasized: _________
a) Brooke accepts money in exchange for performing her daily tasks at her office, since she knowsshe can use that money to buy goods and services: medium of exchange
b) Tim wants to calculate the relative value of oranges and apples, and therefore checks the price per pound of each of these goods quoted in currency units: unit of account
c) Maria is currently pregnant. She expects her expenditures to increase in the future and decides to increase the balance in her savings account: store of value
Answer:
a medium of exchange
a unit of account
a store of value,
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows.
Actual manufacturing overhead = $150,000
Estimated manufacturing overhead = $145,000
Direct labor hours incurred = 4,800
Direct labor hours estimated = 5,000
Compute the predetermined overhead rate.
Answer:
the predetermined overhead rate is $29 per direct labor hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Estimated manufacturing overhead ÷ estimated direct labor hours
= $145,000 ÷ 5,000 direct labor hours
= $29 per direct labor hour
Hence, the predetermined overhead rate is $29 per direct labor hour
Say we change the ceteris paribus assumption to allow each employee to be more productive. For example, we add a zero-cost management technique that allows for the division of labor based on specialization. As a result, each employee's marginal product increases by one. Should the car wash hire more employees
Answer:
The car wash should hire more employees as long as the marginal cost (the extra money that goes to the paying the wage of the new employee) is lower or equal to the marginal benefit (the extra amount of income that the employee will generate for the company).
This is because as long as marginal cost is lower than marginal benefit, hiring an extra worker will produce economic benefits for the firm, and if marginal cost and marginal benefit are equal, the firm at least will break even.
On the other hand, when hiring an extra worker has a marginal cost that is higher than the marginal benefit the worker will produce, the firm will then face economic loss, and should therefore put off hiring any more employees.
The table shows the PPF of an island community. Choose the best statement.
Possibility Fish (pounds) Berries (pounds)
A 0 and 40
B 1 and 36
C 2 and 30
D 3 and 22
E 4 and 12
F 5 and 0
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
Answer:
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
TRUE, IF THEY WANT TO PRODUCE MORE FISH, THEY WILL PRODUCE LESS BERRIES
Explanation:
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
FALSE, THEY CAN GATHER 2 MORE POUNDS OF BERRIES WITHOUT AFFECTING FISH
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
FALSE, THIS COMBINATION LIES ON THE PPF CURVE
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
FALSE, IT WILL HAVE TO LOSE SOME FISH
At December 31, 2017, Ayayai Corporation has the following account balances: Bonds payable, due January 1, 2021$6,500,000 Premium on bonds payable132,000 Interest payable290,000 Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.)
Answer:
See below
Explanation:
Balance sheet as at December 31, 2017
Current liabilities
Bond interest payable
$290,000
Long term liabilities
Bonds payable
$6,500,000
Less: premium on bonds payable
($132,000)
Net bonds payable
$6,368,000
On March 2nd, a fire destroyed the entire inventory stored in a warehouse for the Madison, Inc. The following information is available from the records of the company's periodic inventory system: Beginning inventory 1/01/2020 $989,000 Purchases through 3/02/2020 $784,329 Sales through 3/02/2020 $1,345,789 Gross Profit Ratio 33% Estimate the cost of the inventory destroyed by the fire using the Gross Profit Method.
Answer:
Madison, Inc.
The cost of the inventory destroyed by the fire using the Gross Profit Method is:
$871,650
Explanation:
a) Data and Calculations:
Beginning inventory 1/01/2020 = $989,000
Purchases through 3/02/2020 = $784,329
Sales through 3/02/2020 = $1,345,789
Gross Profit Ratio 33%
Gross profit = $444,110 ($1,345,789 * 33%)
Cost of goods sold = $901,679 ($1,345,789 - $444,110)
Cost of goods available for sale = $1,773,329 ($989,000 + $784,329)
Estimate of the cost of the inventory destroyed by the fire = cost of goods available for sale minus the cost of goods sold
= $871,650 ($1,773,329 - $901,679)
b) The estimate of the cost of the inventory destroyed by the fire is equal to the cost of the ending inventory. It is obtained by subtracting the cost of goods sold from the cost of goods available for sale for the period. The gross profit margin is the difference between the Sales Revenue and the Cost of goods sold. When expressed as a percentage of Sales Revenue, the resulting figure is called the gross profit margin ratio.
Leon, age 14, is a dependent of his parents. In 2020 he earned $6,500 from a part-time job and $7,500 of interest income on bonds given him by his grandparents, resulting in taxable income of $7,150. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and other taxable income taxed at his own rate. Leon's taxable income will be divided as follows A) net unearned income -$1,850 and earned taxable income -$5,300. B) net unearned income -$7,150 and earned taxable income -$0. C) net unearned income -$0 and earned taxable income -$7,150. D) net unearned income -$5,300 and earned taxable income -$1,850
Answer:
Leon's taxable income will be divided as follows
B) net unearned income -$7,150 and earned taxable income -$0.
Explanation:
a) Data:
Earnings from part-time job = $6,500
Interest income from grandparents' bonds = $7,500
Taxable income on the interest income = $7,150
b) For 2020, Leon, age 14, can earn up to $12,200 without paying income tax. This implies that he cannot pay income tax on the $6,500 which he earns from a part-time job. But he is expected to pay tax on the interest income from bonds given him by his grandparents. Under the kiddie tax rules, his income is separated between net unearned income and other taxable income taxed at his own rate.
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Complete the necessary January 31 journal entry to apply overhead
Answer:
Dr Work in process inventory 540
Cr Factory overhead 540
Explanation:
Preparation of the journal entry
Based on the information given about Dream House Builders, Inc. the Complete necessary January 31 journal entry to apply overhead will be to Debit Work in process inventory with the amount of 540 and Credit Factory overhead with the same amount of 540
Jan-31
Dr Work in Process Inventory 540
[($20,000 / $100,000) x $2,700]
(0.2×$2,700=$540)
Cr Factory Overhead 540
If a business invests in stocks or another business, what is its goal?
A. to create a mutual fund
B. to earn revenue for the company
C. to help expand business products
D. to decrease the amount of taxes a business pays
Answer:
B. to earn revenue for the company
Explanation:
The purpose of investing in stocks is to profit from dividend payments or capital gains. When a company invests in stocks of another business, it becomes a shareholder in that business. It is entitled to share in the profits of the business like any other stakeholder. An increase in the share price will results in profits when the shares are sold. A company will invest in the shares of another business earn more revenue.