During the current year, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $13,000 in gross income from an outside consulting service she operates. Deductible expenses paid in connection with the consulting service amount to $3,000. Eleanor also incurs a recognized long-term capital gain of $1,000 from the sale of a stock investment. She must pay a self-employment tax on:
Answer:
$10,000
Explanation:
Eleanor's self-employment tax will require an understanding of a few points.
1. Eleanor earns $120,000 as wages working for an accounting firm therefore, this wages do not qualify for self-employment tax
2. Eleanor earns $13,000 as gross income for her own consulting service and this is self-employment income. However, $3,000 qualify as deductible expenses from the gross income. Taxable self-employment income= $13,000-$3,000= $10,000
3. Long term capital gain tax incurred = $1,000. Ordinarily the capital gain tax should increase the tax. However, its inclusion will be based on the federal government's table for calculating payment of long-term capital gain tax for 2019 based on income for the year.
Looking at the table, income from $0 Up to $39,375 will attract 0% payment of long-term capital gain tax. Since, the self-employment income of Eleanor is $10,000, no long-term capital gain tax will be incurred.
It means only the 13,000-3,000= $10,000 will be tax for self employment
You go to a local mechanic to get your tires changed. The tires cost $300. There is a 6% sales tax, but you get a 10% discount. There is also a $10 non-taxable disposal fee for your old tires, which the mechanic tells you is not subject to discount. 18. Write a function, t(x) for the total purchase amount after taxes, ignoring any discounts and fees.
Answer:
X= cost of the tires
t(x)= (.9*X+10)*1.06
If x = 300, then the costo is (.9*300 + 10) *1.06 = (270 + 10)* 1.06 = 280 * 1.06 = $296.80
If the tax is appplied first and then the discount is applied, your formula would be:
t(x) = (x+10)*1.06 - (-1*x)
If x is equal to $300, the cost is $310 * 1.06 - .1*300 = $328.60 - $30 = $298.60
you pay mor if the tax is applied first.
Your discounted price of .9*x stems from x - .10*x which becomes (1-.10)*x wich becomes .9*x
Your cost with tax stems from y + .06*x =(1+.06)*y = 1.06*y
Y is the amount of the cost that is taxed.
if the discuount is applied first, then y is equal to (.9*x + 10)
if the discount is applied after, then y is equal to (x+10).
The difference is the tas on the discount
Explanation:
Answer:
[tex]t(x)= x+0.06x\\[/tex]
or
[tex]t(x)= 1.06*x[/tex]
Explanation:
if we take x as the tyre cost ($ 300)
Tax = 6%
the function ignoring the discounts and fees would be:
[tex]t(x)= x+0.06x[/tex]
Now including discounts and fees, can be done by two ways
1) adding taxes before discount
To the price 300 add 6% tax = 318
discount would be 318 * 10% = 31.8
then the cost is 318 - 31.8 = 286.2
2) adding taxes after discount
To the price (300) we will apply the 10% discount
discount would be 300 * 10% = 30
price now will be 300- 30 = 270
now to the calculated price add the 6% tax
270* 1.06 = 286.2
The value of money has a ___________ relationship to the price level ( 1 / price level).
a. denominator
b. numerator
c. reciprocal
d. multiplier
Answer:
c. reciprocal
Explanation:
The value for the money is the amount of goods or service that can be bought or worth in exchange of 1 unit of money or you can say it how much goods or service need to be given up to get 1 unit of money. Therefore, value of money is the inverse or reciprocal for the price level. The value for money determine the purchasing power of the economy, The higher the price level, lower the Purchasing power of money.
The structural engineering design section within the engineering department of a regional electrical utility corporation has developed several standard designs for a group of similar transmission line towers. The detailed design for each tower is based on one of the standard designs. A transmission line project involving 46 towers has been approved. The estimated number of engineering hours needed to accomplish the first detailed tower design is 124. Assuming a 94% learning curve, what is your estimate of the number of engineering hours needed to design the eighth tower?
Answer:
102.99 hours needed
Explanation:
Zu = K (U^n)
Zu= estimation of tower which is for 8
U= number of tower which is 8
n= log0.94/log2
[tex]Zu= 124(8^{log0.94/log2} )= 102.99hours[/tex]
The Federal Open Market Committee (FOMC) makes decisions regarding the___________.
A. discount rate
B. reserve requirements
C. margin requirements on stock purchases (primarily common stock)
D. buying and selling of securities (primarily Treasury bonds)
Answer:
The correct answer is letter "D": buying and selling of securities (primarily Treasury bonds).
Explanation:
The Federal Open Market Committee or FOMC is a department of the Federal Reserve Board in charge of establishing monetary policy. There are different meetings within a year they held to determine to continue with the current policy or to change it. A change in monetary policy represents the purchase or sale of government securities (treasury bonds) on the open market to stimuli the economy.
If the MPC is 0.9 and a component of AD, such as Government, is increased by $2, then the maximum amount of change in income and output for the nation would be ___________1. $20 2. $25 3. $50 4. $100
Answer:
1. $20
Explanation:
MPC = 0.9
g = $2
change in y = 1/(1 - MPC)*g
= 1/(1 - 0.9)*2
= $20
Therefore, The maximum amount of change in income and output for the nation would be $20.
On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2017, the band performs 45 concerts. Compute the year 2017 depreciation using the straight-line method.
Answer:
Annual depreciation= $15,950
Explanation:
Giving the following information:
On January 2, 2017, the Matthews Band acquires sound equipment for concert performances for $65,800.
The band estimates it will use this equipment for four years. It estimates that after four years it can sell the equipment for $2,000.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (65,800 - 2,000)/4= $15,950
For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been found that a good description of the arrival pattern is provided by:a. a normal probability distribution.b. an exponential probability distribution.c. a uniform probability distribution.d. a Poisson probability distribution.
Answer:
D. A Poisson Probability Distribution
Explanation:
Poisson Probability Distribution
This is a probability distribution is used in probability theory and statistics to express the probability of a number of events that occur with a known rate or interval of distance, area, volume or time. Specifically, the Poisson probability distribution named after Simeon Denis Poisson, a French mathematician, is used to express probability where events occur one independent of the other.
Comparing this definition with the waiting line situations, one thing is common, arrivals occur independently of other arrivals and this distribution can be described using the Poisson Probability Distribution.
Cash dividends are paid on the basis of the number of shares:
a. authorized.b. issued.c. outstanding.d. outstanding less the number of treasury shares.
Answer:
c. outstanding
Explanation:
The cash dividend is paid on the basis of the outstanding number of shares i.e issued shares minus treasury shares
It can't be paid on the basis of authorized, issued or outstanding less the number of treasury shares . The treasury shares are those shares that are held after buyback and do not retire them.
This dividend paid is reflected in the retained earnings statement which is to be deducted from the net income
Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the next five years and have a residual value of $50,000. The equipment was sold for $210,000 part way through 2021. Actual production in each year was: 2019 = 100,000 units; 2020 = 160,000 units; 2021 = 80,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Prepare the journal entry to record the sale.
Answer:
See explanation section
Explanation:
We know,
Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production
Given,
Purchase value = $400,000
Residual value = $50,000
Expected production = 700,000 units
Depreciable Amount = $(400,000 - 50,000) = $350,000
Annual depreciation rate = $350,000/700,000
Depreciation rate = $0.50
Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50
= $170,000
We know, Book value of asset = Cost price - Accumulated depreciation
Book value = $400,000 - $170,000 = $230,000
Again, Loss on sale of equipment = Book value - Sales price
Loss on sale of equipment = $230,000 - $210,000
Loss on sale of equipment = $20,000
The journal entry to record the sale =
Debit Cash $210,000
Debit Accumulated Depreciation $170,000
Debit Loss on sale $20,000
Credit Equipment $400,000
Answer:
YY 2021, disposal of equipment:
Dr Cash 210,000
Dr Accumulated depreciation 170,000
Dr Loss on disposal 20,000
Cr Equipment 400,000
Explanation:
depreciation per unit produced = (cost - resale value) / estimated production = ($400,000 - $50,000) / 700,000 units = $350,000 / 700,000 units = $0.50 per unit
the journal entries should be:
XX 2019, purchase of equipment:
Dr Equipment 400,000
Cr Cash 400,000
December 31, 2019, equipment depreciation:
Dr Depreciation expense 50,000 (= 100,000 units x $0.50)
Cr Accumulated depreciation - equipment 50,000
December 31, 2020, equipment depreciation:
Dr Depreciation expense 80,000 (= 160,000 units x $0.50)
Cr Accumulated depreciation - equipment 80,000
YY, 2019, equipment depreciation:
Dr Depreciation expense 40,000 (= 80,000 units x $0.50)
Cr Accumulated depreciation - equipment 40,000
YY 2021, disposal of equipment:
Dr Cash 210,000
Dr Accumulated depreciation - equipment 170,000
Dr Loss on disposal 20,000
Cr Equipment 400,000
On October 1, 2021, Oberley Corporation loans one of its employees $27,000 and accepts a 12-month, 10% note receivable.Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.
Answer:
2021 $675
2022 $2,025
Explanation:
Assuming that the financial year of the Oberly Corporation is from January to December.
The amount of interest revenue that will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2021 will be as follows:
Interest Revenue=Principal amount*interest rate*3/12
Interest Revenue=27000*10%*3/12=$675
Since the Oberly Corporation has extended loan to its employee on October 1,2021, therefore only interest revenue of only 3 months will be recognised in the year ended December 31, 2021.
The amount of interest revenue that will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2022 will be as follows:
Interest Revenue=27000*10%*9/12=$2,025
;
Oberley Corporation will recognize $675 in interest revenue for the year 2021 and $2,025 for the year 2022 from the $27,000 loan to an employee at a 10% interest rate.
Explanation:To calculate the amount of interest revenue Oberley Corporation will recognize in 2021 and 2022 from the $27,000 loan to an employee at a 10% interest rate, we need to consider the fraction of the year the loan is outstanding in each year. Since the loan is issued on October 1, 2021, and is a 12-month note, the interest for 2021 will be for 3 months, and the interest for 2022 will be for the remaining 9 months.
The annual interest on the loan is calculated as follows:
Interest = Principal × Interest rate × Time
For 2021:
Interest = $27,000 × 10% × (3/12) = $675
For 2022:
Interest = $27,000 × 10% × (9/12) = $2,025
Therefore, Oberley Corporation will recognize $675 in interest revenue for 2021 and $2,025 in interest revenue for 2022.
Wald Corporation's adjusted trial balance shows the following temporary accounts: service revenue: $20,000; salaries expense $8,000; insurance expense: $2,000; utilities expense: $3,000; interest expense $200; and depreciation expense: $1,400. As part of the the closing process, Wald should credit retained earnings for:
a. $5,400
b. $20,000
c. $14,600
During the process of closing accounts in accounting, Wald Corporation should credit its Retained Earnings account for $5,400. This is calculated by subtracting the total expenses from the service revenue. This credited amount represents the company's earnings after accounting for all expenses.
Explanation:In accounting, during the closing process, we aim to clear out the balances of the temporary accounts and transfer their net effect to the permanent accounts, like Retained Earnings. Wald Corporation's adjusted trial balance shows the following temporary accounts which include both revenues and expenses: service revenue, salaries expense, insurance expense, utilities expense, interest expense, and depreciation expense.
The revenue is the income earned by the corporation which is $20,000 in this case, and expenses are the cost incurred to earn this revenue, and here we sum up all the expenses which include salaries expense, insurance expense, utilities expense, interest expense and depreciation expense, we get a total expense of $14,600 ($8,000+$2,000+$3,000+$200+$1,400). Now, the net effect or the result from operations is found by subtracting total expenses from the service revenue which will be credited to the Retained Earnings account. Therefore, Wald Corporation should credit Retained Earnings for $5,400 ($20,000-$14,600).
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A tradable permit system: Group of answer choices
a. requires that each firm reduce its pollution by the same amount.
b. is difficult to implement because regulators do not know the marginal abatement costs of every company.
c. achieves a given amount of pollution reduction at the least cost because firms with lowest marginal abatement costs do most of the reduction.
d. increases pollution because the government gives firms permits that grant them the right to pollute.
Answer:
C.
Explanation:
Achieves a given amount of pollution reduction at the least cost because firms with lowest marginal abatement costs do most of the reduction.
A tradable permit system achieves pollution reduction at the least cost by allowing firms with the lowest marginal abatement costs to do most of the reduction. The correct answer is c.
The correct answer is: A tradable permit system, also known as a cap-and-trade system, is designed to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
Here's how it works: the government sets a cap on the total amount of pollution that can be emitted. Permits allowing a certain amount of pollution are then either given to firms or sold to them.
Firms that can reduce pollution at a lower cost will do so and sell their extra permits to firms for whom it is more costly to reduce pollution.
This ensures that the pollution reduction is achieved at the least possible cost to the industry and society.
By enabling firms with the lowest abatement costs to act first, tradable permits optimize overall cost-efficiency in reducing pollution.
Therefore, the correct answer is option c that is "achieves a given amount of pollution reduction at the least cost because firms with lowest marginal abatement costs do most of the reduction."
Hadlee Corporation produces two products, P and Q. P sells for $9.50 per unit; Q sells for $5.50 per unit. Variable costs for P and Q are $5.00 and $3.00, respectively. There are 3,300 direct labor hours per month available for producing the two products. Product P requires 3.00 direct labor hours per unit, and product Q requires 5.00 direct labor hours per unit. The company can sell up to 900 units of each kind per month. What is the maximum monthly contribution margin that Hadlee can generate under the circumstances? (Round to nearest whole dollar.) A. $14,070 B. $300 C. $4,350 D. $4,050
Answer:
C. $4,350
Explanation:
We first calculate contribution per limiting factor to rate priority the products to be produced.
Contribution P = 9.50 - 5 = $4.50
Contribution Q = 5.50 - 3 = $2.50
Labor hours used,
P = 3
Q = 5
Contribution / labor hour
P = 4.50 / 3 = $1.5
Q = 2.50 / 5 = $0.5
We should prioritize production of P first and thus total units produced for P should be 900 using 900*3 = 2700 labor hours.
Q should be produced
Hours available for Q = 3300 - 2700 = 600 hours
Q production = 600/5 = 120 units.
Optimum Contribution =
900 units of P @ 4.50 contribution / unit = $4,050
120 units of Q @ 2.50 contribution / unit = $300
Total Contribution = 4,050 + 300 = $4,350
Hope that helps.
A researcher is studying the effectiveness of two different resident adolescent drug treatment programs. Program A is used at Summerhill adolescent facility. Program B is used at Winterdale adolescent facility. Because random assignment to treatments is not possible in this situation, what can the researcher do to minimize possible effects of sample bias?
Answer and explanation:
In order to avoid sample bias, it is important to make a classification of the teenagers being studied by categorizing them according to race, family composition, and drugs used, for instance. This will allow the researcher to compare similar samples of the two different facilities instead of picking some randomly without taking into consideration factors like the mentioned above.
To minimize possible sample bias when random assignment is not feasible, the researcher can employ strategies like matched sampling, controlling for confounding variables, propensity score matching, and conducting sensitivity analysis.
To minimize possible effects of sample bias when random assignment to treatments is not feasible, the researcher can employ various strategies:
1. Matched sampling: The researcher can carefully match participants in Program A with similar participants in Program B based on relevant characteristics such as age, gender, severity of drug addiction, socioeconomic status, and prior treatment history.
2. Control for confounding variables: The researcher can statistically control for known confounding variables that may influence the outcome by including them as covariates in the analysis.
3. Propensity score matching: The researcher can calculate propensity scores for each participant, representing the likelihood of being assigned to Program A or Program B based on observed characteristics, and then match participants with similar propensity scores.
4. Sensitivity analysis: The researcher can conduct sensitivity analyses to assess the robustness of the findings to potential biases.
By employing these strategies, the researcher can enhance the comparability of the treatment groups and minimize the influence of sample bias on the study results, thereby increasing the validity of the findings.
A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 25%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment?
A) $837,500
B) $303,750
C) $125,000
D) $337,500
Answer:
The correct answer is D.
Explanation:
Giving the following information:
New injection molding equipment for a cost of $500,000.
Increase in sales of 25%.
The manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton.
First, we need to calculate the new sales level:
New sales (units)= 75t* 1.25= 93.75 tons
Increase in sales (dollars)= (93.75 - 75)*18,000= $337,500
Final answer:
The increase in revenue from the new equipment for the clothespin manufacturer is projected to be $337,500 next year. This figure is calculated by determining the additional revenue generated from the 25% increase in production, which amounts to an additional 18.75 tons of product sold at the existing price of $18,000 per ton.
Explanation:
The student is asking how the purchase of new injection molding equipment, which allows for a 25% increase in production capacity, will affect the revenue of a small manufacturer that makes clothespins. With the current production at 75 tons per year, sold at $18,000 per ton, we can calculate the increase in revenue from the anticipated sales boost.
Calculate the current annual revenue: 75 tons x $18,000 per ton = $1,350,000.
Determine the additional tons produced due to the 25% increase: 75 tons x 25% = 18.75 tons.
Calculate the additional revenue from the sale of the extra tons: 18.75 tons x $18,000 per ton = $337,500.
Thus, the increase in revenue next year from the new equipment is $337,500, which corresponds to option D.
Compare a hypothetical DVC with a hypothetical IAC. In the DVC, average per capita income is $5000 per year. In the IAC, average per capita income is $40,000 per year. If both countries have a savings rate of 10 percent per year, the amount of savings per capita in the DVC will be $ per person per year, while in the IAC it will be $ per person per year.
Answer:
The amount of savings per capita in the DVC will be $500 per year.
The amount of savings per capita in the IAC it will be $4,000 per year.
Explanation:
- The average savings per capita is calculated as:
* Average per capita income x saving rates.
- Thus, for DVC, amount of savings per capita is calculated as:
* Average per capita income of DVC x saving rates of DVC = $5,000 x 10% = $500.
- and for IAC, amount of savings per capita is calculated as:
* Average per capita income of IAC x saving rates of IAC = $40,000 x 10% = $4,000.
You earn $93,000 per year at your job. The index value for the medical care component of the CPI is currently 440 but is expected to increase next year to 481. How much money will you need to earn next year to be able to purchase the same amount of medical care? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
Answer:
$101,665.91
Explanation:
Data provided in the question:
Current earnings = $93,000
Current CPI = 440
Expected future CPI = 481
Now,
The money needed to earn next year to be able to purchase the same amount of medical care will be
= Current earnings × [ Expected future CPI ÷ Current CPI ]
= $93,000 × [ 481 ÷ 440 ]
= $101,665.91
A bank has $200 million in demand deposits and $150 million in reserves. The reserve ratio is 20 percent. What is the maximum amount of loans the bank can make from its reserves?
Answer:
maximum amount of loan bank that make reserve is $110 million
Explanation:
given data
demand deposits = $200 million
reserve = $150 million
reserve ratio = 20%
to find out
maximum amount of loan bank can make reserve
solution
we get here excess reserve that is
excess reserve = deposits × reserve ratio ...............1
excess reserve = $200 million × 20%
excess reserves is $40 million
so maximum amount of loan bank that make reserve is = $150 million - $40 million
maximum amount of loan bank that make reserve is $110 million
The maximum amount of loans the bank can make from its reserves is $110 million. This is calculated as the difference between the total reserves and the required reserves (based on the reserve ratio).
Explanation:The maximum amount of loans a bank can make is calculated as the difference between its total reserves and its required reserves. In this case, the bank has $150 million in total reserves. Because the reserve ratio is 20 percent, this means that the bank is required to have at least 20% x $200 million = $40 million as reserves. Therefore, the maximum amount of loans the bank can make from its reserves is $150 million - $40 million = $110 million.
To put it differently, if the bank’s total reserves are larger than the required reserves (based on the reserve ratio), the bank is able to make loans. This banking practice contributes to expand the money supply in the economy. However, it’s important to understand that if all depositors were to demand their money back at once, the bank would not have enough reserves on hand to satisfy this demand, which is known as a 'bank run' scenario.
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When AS is greater than AD, savings will be greater than investment and economic activity will _________..
Answer:
The correct answer is: decrease.
Explanation:
If Aggregate Supply (AS) is higher than Aggregate Demand (AD), it implies somehow consumers are keeping their income with them. Economic activity will contract as a result but to promote consumption, for instance, banks lower their interest rates on loans with the confidence that consumers will have enough money to cover their debts.
Lori purchased educational savings bonds to help finance her son's education. She paid $4,000 for the bonds. The bonds matured at $6,000, and the son used $2,500 to pay his tuition for the first semester. The son quit school after one semester and Lori used the remaining money to buy her son a car. If Lori's AGI is $55,000, how much interest is included in her gross income?
Answer:
$1,167 nterest is included in her gross income.
Explanation:
Interest in this case = $6,000 - $4,000
= $2,000
Amount invested = 2,500/6000
= 41.67%
Interest excluded = 2,000*41.67%
= $833
interest included in Lori’s AGI = $2,000 – $833
= $1,167
Therefore, $1,167 nterest is included in her gross income.
Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 1,000 Advertising expense 500 Mortgage interest 3,500 Property taxes 900 Repairs & maintenance 650 Utilities 950 Depreciation 8,500 During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
Using the original facts, complete Natalie’s Form 1040, Schedule E, for this property. Also, partially complete Natalie’s 1040, Schedule A, to include her from AGI deductions related to the condo.
Answer and Explanation:
Natalie's Gross Income = $10,000
75 + 35 = 110 days
Expenses:
Insurance Expense (75/110) x 1000 682
Advertising Expense 500
Mortgage Interest (75/110) x 3500 2386
Property Taxes (75/110) x 900 614
Repairs and Maintenance (75/110) x 650 443
Utilities (75/110) x 950 648
Depreciation (75/110) x 8500 5795
Until the depreciation expenses the total expenses accumulate to 5273. If we deduct that with the gross income total we get 4727. We can only deduct 4727 from the total portion of 5795 depreciation expense.
Therefore, for AGI deductions we take total of (5273 + 4727) = $10,000
For Natalie's personal deduction of AGI
Mortgage interest (35/110) x 3500 1114
Property taxes (35/110) x 900 286
Total personal deduction for AGI $1400
Natalie would calculate the rental portion of her expenses, and use those to compute her rental real estate loss as well as potential deductions on her Schedule A itemized deductions.
Explanation:Natalie would first calculate the rental portion of her expenses since the property is not used solely for rental. The Tax Court method divides the number of rental days by the total number of days the condo was used. In this case, it is 75 rental days divided by 110 total days or 0.6818 as the apportionment ratio.
Next, each expense is multiplied by this ratio:
For the personal portion of the mortgage interest and property taxes, Natalie would be able to include these in her Schedule A itemized deductions. Therefore, she could potentially deduct the remaining $1,114 (Mortgage Interest) and $287 (Property Taxes) on Schedule A.
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Madrid Company has provided the following data (ignore income taxes):
2014 revenues were $77,500.
2014 net income was $33,900.
Dividends declared and paid during 2014 totaled $5,700.
Total assets at December 31, 2014 were $217,000.
Total stockholders' equity at December 31, 2014 was $123,000.
Retained earnings at December 31, 2014 were $83,000.
Which of the following is not correct?
A. 2014 expenses were $43,600.
B. Total liabilities at December 31, 2014 were $94,000.
C. Retained earnings increased $33,900 during 2014.
D. Common stock at December 31, 2014 was $40,000.
Answer:
C.Retained earnings increased $33,900 during 2014.
Explanation:
Total expenses during the year=Revenue- net income
=77,500-33,900
=$43,600
Therefore, option A. is correct
Total Liabilities=Total assets-total equity
=217,000-123,000
=$94,000
Therefore, option B. is correct
The formula for calculating Retained earnings is given as follows:
Retained earnings at year end=Opening retained earnings+net income-dividend paid.
83,000=opening retained earnings+33,900-5,700
opening retained earnings=83,000-33,900+5,700
=54,800
Change in retained earnings=closing retained earnings-opening retained earnings
Change in retained earnings=83,000-54,800=28,200
Therefore, Option C. is not correct
Common stock at December 31, 2014=total equity-total retained earnings
=123,000-83,000
=$40,000
Therefore, Option D. is correct
Based on the above discussion the answer is C.Retained earnings increased $33,900 during 2014.
The correct answer is option C. Retained earnings increased $33,900 during 2014.
Explanation:To determine which of the given options is not correct, we need to analyze each option individually.
A. 2014 expenses were $43,600:
This can be calculated by subtracting the net income of $33,900 from the revenues of $77,500: $77,500 - $33,900 = $43,600. Since this calculation matches the given expense amount, option A is correct.
B. Total liabilities at December 31, 2014 were $94,000:
To calculate total liabilities, we subtract stockholders' equity from total assets: $217,000 - $123,000 = $94,000. Since this calculation matches the given amount, option B is correct.
C. Retained earnings increased $33,900 during 2014:
We can determine the change in retained earnings by comparing the net income and dividends declared: $33,900 - $5,700 = $28,200. Since this calculation does not match the given change, option C is incorrect.
D. Common stock at December 31, 2014 was $40,000:
Common stock can be calculated by subtracting retained earnings from stockholders' equity: $123,000 - $83,000 = $40,000. Since this calculation matches the given amount, option D is correct.
Therefore, the correct answer is option C. Retained earnings increased $33,900 during 2014.
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Samantha, who is single and has MAGI of $36,000, recently was employed by an accounting firm. During the year, she spends $1,650 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,275 for tuition and $900 for books (which are not a requirement for enrollment in the course).
Assuming no reimbursement, how much can Samantha deduct for the:
a. CPA exam review course? $X
b. Law school expenses? $X
Answer:
a) $0
b) $4,000
Explanation:
a)
No deduction will be allowed to samantha for the amount spent on CPA exam review course.
So, Samantha can deduct $0.
b)
Under section 222 of IRS Code, maximum amount of deduction allowed to tax payer (whose adjusted gross income is less than $65,000) on account of tuition fees and other education expenses is $4,000.
So, Samantha can deduct $4,000.
Hope this helps!
Final answer:
Samantha may not be able to deduct expenses for her CPA exam review course unless such employee expense deductions are allowed, which are currently suspended by the Tax Cuts and Jobs Act. Her law school expenses also are not deductible as they are for education that qualifies her for a new profession. She may, however, be eligible for education credits like the Lifetime Learning Credit.
Explanation:
Samantha, who has a MAGI of $36,000 and is pursuing further education and professional development, can expect different tax treatments for her CPA exam review course and her law school expenses. The deductibility of these expenses depends on current tax laws and eligibility for education-related tax benefits.
For the CPA exam review course, if it maintains or improves skills required in her current job, she may be able to deduct it as an unreimbursed employee expense if such deductions still exist. However, if these deductions have been eliminated or suspended in the current tax law (e.g., by the Tax Cuts and Jobs Act which suspended these deductions for tax years 2018-2025), then she would not be able to claim a deduction.
Regarding law school expenses, she cannot deduct the tuition and related expenses as they are for education that qualifies her for a new profession, which is not deductible. Nonetheless, Samantha could potentially be eligible for education credits if she falls within the income threshold, such as the Lifetime Learning Credit, which may provide a credit of up to $2,000 for qualified education expenses.
Donna’s philosophy as she coordinates her firm’s marketing efforts is to keep in mind the company’s overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with the communications but also including the other marketing mix elements. Based on this information, Donna is most likely a proponent of___________.a. Integrated Marketing Communicationsb. Intended Marketing Commitmentsc. Media Reachd. Media Response
Answer:
Explanation:
Integrated Marketing Communications or IMC is an approaching in marketing that seeks to ensure a unified experience for a firm's customers, marketing efforts and even mangement across various channels of communication. IMC tries to ensure that a links are maintained among all forms of messages and communications between the firm and its consumers.
IMC not only ensure the integration of promotional or marketing tools to ensure harmony, it also ensures that marketing activities are constantly in line with the firm's strategies and objectives.
IMC seeks to integrate all levels of communcation including vertical, horizonal, external and internal levels of communication to strengthen its communcation lines and marketing activities.
Donna's approach constantly marries her firm's marketing activities with the company's strategies and goals through an integrated communication system that is constantly and consistently active for instructions as well as feedbacks. The approach believes that an organisation's objectives are better and easily achieved when all communication tools and channels work in harmony to create one voice.
Donna's approach in keeping the company's overarching strategy in mind and ensuring consistent messaging across all marketing activities aligns with the principles of Integrated Marketing Communications (IMC).
Explanation:Based on the information provided, Donna is most likely a proponent of Integrated Marketing Communications (IMC).
This strategic approach aims to deliver consistent and coordinated messages across varying promotional methods - advertising, public relations, direct marketing etc., guided by the company's overarching business strategy.
A key goal of IMC is that all aspects of marketing communication, including advertising, sales promotion, public relations, and direct marketing, work together as a unified force, rather than allowing each to work in isolation, which increases their overall effectiveness.
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The people assigned to your project have high billable rates, and the project budget doesn't provide much of a buffer over your estimated total project cost. Fortunately, the project finish date has some wiggle room. Which measure of progress is most important to track in this situation?
Explanation:
What are all the possible things which we can do in remaining duration are given below. We need not worry about actual duration or start date. We need to consider the remaining date and give out the best possible.
Call for a meeting and do the following:
Step 1: To identify the pending tasks and the person who is responsible
Step 2: Discuss the reason for delay
Step 3: Explain the current scenario
Step 4: Give tight deadlines and motivate the team to keep up the dates
Step 5: Re-insist on the quality factor
Step 6: Place the responsibility on the team shoulder
Step 7: Ask the team to restart with positive thoughts
Steps to be followed after meeting:
Follow up about the datesFollow up on qualityIdentify the need for hand-holdingMotivate throughoutThe measure of progress that is most important to track the budget here is remaining duration.
What is a remaining duration?In a project management, it means the period of expected or required time that is required to complete a particular activity.
When we employ the remaining duration, we need not worry about actual duration or start date, all that is consider is the remaining date to give out the best possible.
Therefore, the Option B is correct.
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The Giving Voice to Values framework distinguishes between organizational and individual values because:
1-Organizational values are influenced by ethical leadership while individual values are influenced by perceptions of organizational values.
2-Organizational values are internal to each individual while individual values are highly visible within the organization.
3-Organizational values are highly visible within the organization while individual values are internal to the very core of individuals.
4-Organizational values create perceptions of ethical leadership while individual values are innate to the individual.
Answer:
The correct answer is 3
Explanation:
GVV stands for Giving Voice to Values is an approach which is very innovative as the drives the leadership development in the business workplace and the education.
It is not regarding the people persuading to be more ethical but concerned that the organizational values should be highly visible in the organization wheras in the individual values, which are internal to the core of the individuals.
During periods of recession a(n) ___________ money policy is appropriate to encourage business expansion with low interest rate..
Answer:
the correct answer is easy
Explanation:
During periods of recession a(n)easy money policy is appropriate to encourage business expansion with low interest rate..
Mary is in contract negotiations with a publishing house for her new novel. She has two options. She may be paid $100,000 up front, and receive royalties that are expected to total $26,000 at the end of each of the next five years. Alternatively, she can receive $200,000 up front and no royalties. Which of the following investment rules would indicate that she should take the former deal, given a discount rate of 8%?Rule I: The Net Present Value ruleRule II: The Payback Rule with a payback period of two yearsRule III: The internal rate of return (IRR) RuleA) Rule II and IIIB) Rule I and IIC) Rule III onlyD) Rule I only
Answer:
D) Rule I only
Explanation:
The net present value value can be calculated by subtracting the amount that would be gotten now from the present value of the amount that would be gotten for the next five years.
The NPV can be found using a financial calculator
Cash flow for year 0 = $-100,000
Cash flow each year for year 1 - 5 = $26,000
I = 8%
NPV = $3810.46
The present value of the investment is $203,810.46 which is greater than $200,000. Mary should pick the first option.
The NPV is appropriate because the present value of both options can be compared.
The IRR is the discount rate which equates the after tax cash flows from an investment to the amount invested. The IRR cannot be used because the second option doesn't have a stream of cash flows to which to calculate its IRR.
The payback period measures how long it takes for the amount invested to be recouped from cash flows. The payback period cannot be used because there are no cash flows for the second option.
I hope my answer helps you.
Imagine you are a buyer in a double oral auction with a reservation value of $17 and there is a seller asking for $11
If you accept this offer, you will gain ................$ (Enter your answer as an integer)
If you are the only buyer, and you know that the lowest ask price is $3, should you accept this offer?
A. Yes, since you will gain $14.
B. No, as the only buyer you can extract a lower ask price.
C. Yes, accepting an offer from any other seller will reduce your surplus.
D. Both A and C are correct.
Answer:
Yes, since you will gain $14
Explanation:
1. We're going to get $6 in this case. Because our profit represents the difference in our readiness to pay and the cost charged by the seller.
2. As we are ready to sell the seller is now 3, from this contract we will receive $17-3= $14.
Every other vendor would lower our $14 surplus
The tender price refers to a purchaser's highest price for money. The demand price corresponds to a seller's cheapest price for a product.
This is known as the spread, but the smaller the spread, the larger the visibility of the defence.
The gain from accepting the offer is $6. However, knowing that there's a lower asking price available, it would be more beneficial for the buyer not to accept this offer and negotiate for a price closer to $3, thus increasing his gain.
Explanation:In a double oral auction, a buyer's gain is the difference between their reservation value (the highest price they're willing to pay for a good) and the seller's asking price. In this scenario, the buyer's reservation value is $17, and the seller's asking price is $11, so the buyer would gain $6 if they accept this offer.
However, as the question states, the lowest known asking price is $3. If you're the only buyer, thus having bargaining power, there's a potential to negotiate a lower price, even lower than $11. So, the answer is Option B: No, as the only buyer you can extract a lower ask price.
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