Answers
Answer:
$25.73
Explanation:
Apples $4.25
Oranges $5.00
Cheese $4.50
Flowers $9.99
Total Purchase Before Tax $23.74
Sales Tax @8% $1.99
Total Cost $25.73
Where Sales Tax is calculated as;
$23.74 x 0.08 = $1.99
Related Questions
Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he has worked at the company for 25 years. He heard lots of information about the way things have been handled in the past, which helped him understand the organizational system. The information he provides is not written down, but it is invaluable in helping his coworkers in making decisions about how to deal with difficult customers. Andrew’s information is an example of ______ knowledge.
a. explict.
b. descriptive
c. vigilant.
d. cultural
Answers
Answer:
option d is right
Explanation:
given that Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he has worked at the company for 25 years.
He heard lots of information about the way things have been handled in the past, which helped him understand the organizational system.
Andrew’s information is an example of __Cultural____ knowledge.
This is because he knows some cultural characteristics, belief, history, and also behaviours due to his vast experience of 25 years and he shares with others.\
It is not explicit because not written and source is not mentioned
It is not descriptive, because data is not supported for his verdict.
It is not vigilant, because vigilant information is parted only to prevent frauds, or any illegal or unwarranted activity or behaviour.
Hence option d is right
Assuming a downward-sloping demand curve, a change in price, all held constant:a. May or may not result in a change in quantity demanded. b. Generates a change in quantity demanded and a change in demand. c. Generates a change in demand. d. Generates a change in quantity demanded.
Answers
Answer:
d. Generates a change in quantity demanded.
Explanation:
Because in this case only the price is changing and all other factors are held constant the demand curve will not move and any movement that will take place will be along the demand curve. If the price increases the quantity demanded will decrease and if the price decreases the quantity demanded will increase, the reason for this is that the demand curve is downward sloping, therefore a price change will only change the quantity demanded.
7 Houseman, Inc. anticipates sales of 60,000 units, 58,000 units, 61,000 units and 60,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?
Answers
Answer:
60,500 units
Explanation:
Data provided in the question:
Month sales
July 60,000 units
August 58,000 units
September 61,000 units
October 60,000 units
Ending inventory = 50% of the following month's sales
Now,
Total inventory required in September
= Sales in September + Ending inventory of September
= 61,000 units + 50% of sales in October
= 61,000 units + ( 0.50 × 60,000 )
= 61,000 units + 30,000 units
= 91,000 units
Number of units to be produced in September
= Total inventory required in September - Ending inventory of August
= 91,000 units - ( 50% of 61,000 )
= 91,000 units - 30,500 units
= 60,500 units
Kim’s Academy had $10,000,000 of X-bonds payable due in 2022. Prior to 12/31/2021, Kim’s refinanced $3,000,000 of the X-bonds with other bonds that mature in 2032. On January 15, 2022, Kim’s refinanced another $2,000,000 of the X- bonds with others that mature in 2029. Kim’s issued its financial statements on February 1, 2022. On February 15, 2022, Kim’s refinanced another $4,000,000 of the X-bonds with others that mature in 2030. In its 2021 financial statements, Kim’s should show noncurrent bonds payable of:
a. $2,000,000
b. $3,000,000
c. $5,000,000
d. $9,000,000
Answers
Answer:
b. $3,000,000
Explanation:
As at end of 2021, noncurrent bonds payable are those amounts to be matured in 2022.
At the beginning, Kim’s Accademy had $10,000,000 of X-bond payable due in 2022 which is consider current bond payable as it will be matured in next coming year.
But then prior to 12/31/2021, Kim’s refinanced $3,000,000 of the X-bonds with other bonds that mature in 2032; so the bond payables as of end of 2021 include $3,000,000 of noncurrent bond and $7,000,000 of current bonds.
What idea did both the Regulators and Stamp Act Congress share? a. Colonial governors should make decisions unilaterally. b. Boycotts did not work as a means of protest. c. Colonists wanted to be represented in the government. d. There should be no taxes under any circumstances. e. Native Americans should remain in control of land west of the Appalachians.
Answers
Answer:
the correct answer is
c. Colonists wanted to be represented in the government.
good luck
Both the Regulators and the Stamp Act Congress held the view that colonists wanted to be represented in the government, protesting against British-imposed taxation without such representation.
The idea that both the Regulators and Stamp Act Congress shared was that colonists wanted to be represented in the government. This concept is famously encapsulated in the slogan “no taxation without representation.” Both groups believed that it was unjust for the British Parliament to impose taxes on the colonies without the colonies having representatives in Parliament. The Stamp Act Congress drafted the Declaration of Rights and Grievances, which protested taxation without representation, while influential writings like John Dickinson's “Letters from a Pennsylvania Farmer” echoed the sentiment that colonists were being treated as slaves due to the lack of consent in taxation. Furthermore, organized boycotts and protests by the colonists put economic pressure on British goods, indicating their united stance on the desire for representation and fair treatment under British governance.
Which of the following inputs is normally considered to be variable in the short run?
Select one:
a. Money
b. Capital
c. Labor
d. Time
Answers
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Thomas More Company incurred the following costs during the
current year in connection with its research and development activities.
Cost of equipment acquired that will have alternative
uses in future R&D projects over the next 5 years
(uses straight-line depreciation) $280,000
Materials consumed in R&D projects 59,000
Consulting fees paid to outsiders for R&D projects 100,000
Personnel costs of persons involved in R&D projects 128,000
Indirect costs reasonably allocable to R&D projects 50,000
Materials purchased for future R&D projects 34,000
Instructions
Compute the amount to be reported as research and development expense by More on its current year
income statement. Assume equipment is purchased at the beginning of the year.
Answers
Answer:
$393,000
Explanation:
The computation of the research and development expense reported is shown below:
= Materials consumed in R&D projects + Consulting fees paid to outsiders for R&D projects + Personnel costs of persons involved in R&D projects + Indirect costs reasonably allocable to R&D projects + depreciation expense
= $59,000 + $100,000 + $128,000 + $50,000 + $56,000
= $393,000
The depreciation expense is computed below:
= (Cost of equipment acquired - salvage value) ÷ (useful life)
= ($280,000 - $0) ÷ (5 years)
= $56,000
To calculate the research and development expense, we need to consider the costs incurred. The total amount to be reported by Thomas More Company is $651,000.
Explanation:To calculate the amount to be reported as research and development expense by Thomas More Company, we need to consider the costs incurred in connection with its R&D activities. The expenses that should be included are:
Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years: $280,000Materials consumed in R&D projects: $59,000Consulting fees paid to outsiders for R&D projects: $100,000Personnel costs of persons involved in R&D projects: $128,000Indirect costs reasonably allocable to R&D projects: $50,000Materials purchased for future R&D projects: $34,000Adding up these expenses, the total amount to be reported as research and development expense by Thomas More Company on its current year income statement is $651,000.
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Markson Company had the following results of operations for the past year: Sales (8,000 units at $21.00) $168,000 Variable manufacturing costs $90,000 Fixed manufacturing costs 16,000 Variable selling and administrative expenses 16,000 Fixed selling and administrative expenses 21,000 (143,000) Operating income $25,000 A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $15.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,700 for the purchase of special tools. If Markson accepts this additional business, its profits will:
Answers
If Markson Company accepts the offer from the foreign company to sell an additional 2,000 units at $15.5 per unit, and after considering the increase in variable and fixed costs that will occur from selling these units, their profitability will increase by $6,800.
Explanation:To answer this question, we first need to calculate the additional income and costs that will result from this transaction. The additional income will be 2,000 units * $15.5/unit, which is $31,000. The additional variable manufacturing cost is 2,000 units * ($90,000/8,000 units), which equals $22,500, and the additional fixed overhead is $1,700.
So the changes in profit can be calculated as follows: Profit change = Increase in total revenue - Increase in variable cost - Increase in fixed cost = $31,000 - $22,500 - $1,700 = $6,800
In conclusion, if Markson Company accepts this additional business, its profits will increase by $6,800.
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The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy.
1. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.
a) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b) The current tax system acts as an automatic stabilizer.
c) Businesses make investment plans many month in advance.
d) The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
2. Which of the following are examples of automatic stabilization? Check all that apply.
a) Corporate income taxes
b) Personal income taxes
c) Unemployment insurance benefits
Answers
Answer:
1. a. b. and d.
2. a and c
Explanation:
Stabilizers can aggressively change fluctuations in the business cycle if they are not based on actual facts.
Automatic stabilizers are so called because they act to stabilize economic cycles and are automatically triggered without additional government action.
Motivation at The Container Store There are many motivation theories. Part of what makes a given manager a high performer is his or her ability to motivate workers. The more managers understand about motivation, the better they are at choosing the appropriate motivational technique for given circumstances. The Container Store recognizes this and uses many types of motivational techniques. Because they are so successful at motivating employees, turnover at the Container Store is 11 percent in an industry which regularly sees 100% or greater turnover. How well can you identify the motivational theories that underlie the Container Store’s efforts? Kip Tindell and Garrett Boone founded The Container Store in Dallas, Texas, in 1978, and Tindell currently serves as CEO and chairman (Boone is chairman emeritus). When they opened their first store, they were out on the floor, trying to sell customers their storage and organization products that would economize on space and time and make purchasers’ lives a little less complicated. The Container Store has grown to include 79 stores in U.S. markets from coast to coast; whereas the original store in Dallas had only 1,600 square feet, the stores today average around 25,000 square feet. The phenomenal growth in the size of the stores has been matched by impressive growth rates in sales and profits. Managers at The Container Store are often found on the shop floor, tidying shelves and helping customers carry out their purchases. And that, perhaps, is an important clue to the secret of their success. The Container Store has been consistently ranked among Fortunemagazine’s "100 Best Companies to Work For" for 17 years running. In 2016 The Container Store was 14th on this list. Early on, Tindell and Boone recognized that people are The Container Store’s most valuable asset and that after hiring great people, one of the most important managerial tasks is motivating them. One would think motivating employees might be especially challenging in the retail industry, which has an average annual turnover rate of 100 percent or more. At The Container Store, however, annual voluntary turnover is less than 10 percent, a testament to Tindell’s and other managers’ ability to motivate
Answers
Answer:The motivational theories that underlines the container store efforts is the A. H Maslow hierarchy of need theory and F. Herzberg two factor theory,and David mccelland three need theory
Explanation:
The motivational theories that underlie the container store efforts is the A.H Maslow hierarchy of need theory and F. Herzberg two facto
Motivation : This is the process of stimulating the personnel of an organization to enable them make maximum effort towards the attainment of the objectives of the organization. It is the duty of managers to endeavour to attain the organizational objectives and this can be done through people. To achieve this goal it is absolutely essential that staff at all levels be motivated to cooperate in the organizational plan and to work as effectively as possible. There are many motivational theories some of which are
Abraham Maslow hierarchy of need theory, in this theory Maslow identified the following hierarchy of need which are
Physiological need : This are the basic need for continue existence of human beings which includes the need to satisfy hunger, clothing and shelter. These need are very significant in motivating people to work.and untill it is satisfied people cannot move on to another need.
Safety need :his is the need for protection, individuals tend to look for a measure of security of protection against lowering of living standard, and also individuals will look for security of their job.when such threats are removed then the individuals will feel safe and will be motivated by the next need
Social need: This are the need which motivate a person to enter actively into the social environment in which the person belong both at work or in the society at large. The average individuals has a deep rooted need to belong to social group and to be accepted by his or her peers..
Esteem need : This are those need which follow from self satisfaction arising out of achievement and the respect of others. This includes self respect, self discpline, and a feeling of confidence.
Self actualization : This is need becomes active when the previous four have been satisfied. It motivates a person to seek and find the activity which satisfied a person urge for creativity and drive to exercise ultimate power. For example actors, chief executive, and politicians can all be said to be attempting to satisfy this need for self fulfilment.
Frederick Herzberg hygiene theory which suggest two different categories of factors relating to people's altitude to work which he called hygiene factors and motivating factors
The hygiene factors are
(i) organizational policies and practices, organizational rules and related factors
(ii) style of supervision and management controls
(iii) scale of pay and related benefits such as sick pay,retirement pensions and security
(iv) interpersonal and social relationships within the working environment, and status within the organization
(v) working conditions, working environment, equipment and general work arrangement.
These factors relate to the conditions under which the workers operates rather than the actual work itself,because of this any improvement in a hygiene factor will have a temporary effect
Motivating factors : This have a positive and long lasting effect on the performance of workers in an organization. These motivating factors include
(i) Achievement : This is the satisfaction derived from work well done
(ii) Recogntion of achievement : The workers needs to have his efforts recognized by his superiors, which add to self esteem
(iii) The work itself, This needs to be challenging as well as rewarding, it is in this area that industrial organization motivates the workers, because work in this organization is repetitive and monotonous.
(iv) Responsibility, increased responsibility for the workers should motivate them to greater effort especially when it is associated with rewarding work
(v) self satisfaction, Actual or promised of promotion is a very positive motivation for workers as well as self development which plays an important role in ensuring satisfaction.
These satisfies according to Herzberg motivate workers in a positive way to perform a good job and for greater co-operation in aiming for organizational goals and high morale
David Mccelland three need theory
David Mccelland identified the three need theory which he called
Need for Achievement : This is the high need which are needed by the workers in an organization to achieve goals that are challenging.
Need for Affilliation : This is the need to foster friendly and close relationship with workers in the organization by the manager of the organization. Such motivate the workers to co-operate in the achievement of organizational objectives.
Need for power : This is the need for managers to direct workers in an organization to ensure that the workers actual performed the work they are expected to do in the organization.
The Container Store utilizes various motivational techniques and creates a positive work environment to effectively motivate their employees and reduce turnover rates.
Explanation:The Container Store utilizes various motivational techniques to keep their employees motivated and reduce turnover rates. One of the main reasons for their success in motivating employees is their recognition of people as their most valuable asset. Managers at The Container Store are actively involved in the day-to-day operations and are often found on the shop floor, tidying shelves and helping customers.
By demonstrating their commitment to the employees and creating a positive work environment, The Container Store is able to motivate their employees effectively. This is reflected in their low annual turnover rate of less than 10 percent, which is significantly lower than the industry average of 100 percent or more.
The Container Store's success in employee motivation can be attributed to theories such as the recognition of intrinsic motivation, the importance of a positive work environment, and the concept of empowering employees. These theories emphasize the significance of valuing employees, providing meaningful work, and enabling autonomy and growth.
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Marigold Corporation has retained earnings of $684,800 at January 1, 2020. Net income during 2020 was $1,690,600, and cash dividends declared and paid during 2020 totaled $84,200. Prepare a retained earnings statement for the year ended December 31, 2020
Answers
Answer:
Explanation:
The preparation of the retained earnings statement for the year ended December 31, 2020 is presented below:
Marigold Corporation
Retained Earning statement
For the year ended December 31, 2020
Beginning balance of retained earning $684,800
Add: Net income $1,690,600
Less: Cash Dividend paid -$84,200
Ending balance of retained earning $2,291,200
Final answer:
This detailed answer provides a clear explanation of how to prepare a retained earnings statement for Marigold Corporation for the year ended December 31, 2020.
Explanation:
Retained Earnings Statement for Marigold Corporation:
Retained Earnings at January 1, 2020: $684,800
Net Income for 2020: $1,690,600
Cash Dividends Declared and Paid: $84,200
Calculation: Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings
Calculation: $684,800 + $1,690,600 - $84,200 = Ending Retained Earnings
Ending Retained Earnings for Marigold Corporation at December 31, 2020: $2,291,200
Yang converted her personal residence to rental property ten years ago. At the time of conversion, the fair market value of the house was $60,000. After taking depreciation deductions of $12,000, Yang sells the house for $68,000. If Yang paid $50,000 for the house, her adjusted basis in the house is:a. $30,000.b. $38,000.c. $48,000.d. $50,000.e. $60,000.
Answers
Answer:
c. $48,000
Explanation:
The adjusted basis is the fair value less/plus adjustments done by any consideration for tax experts. As adjustments, you can consider legal fees, restoration of damaged property, insurances, depreciation, etc. In this case, it is stated that depreciation was $12,000 and the Fair Value was $60,000. Therefore, the adjusted basis is 60,000-12,000 = 48,000
Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays $40 per hour for as many hours as she chooses to work, and as a rock collector, in which case her pay depends both on the price of the rocks and the number of them she finds. These are special rocks so they have value! Earnings aside, Zoe is indifferent between the two jobs. The number of rocks she can expect to find depends on the number of hours she searches:Hours per day Total rocks per day0 01 72 133 174 205 21a. The marginal cost of spending one hour hunting for rocks is equal to $________ .b. If the price per rock is $10 then the marginal benefit of spending one hour hunting for rocks is equal to $______ .c. If the price per rock is $20, then her best choice is to spend ______ hours hunting for rocks.d. If the price per rock falls to $10 then her best choice is to spend ________ hours hunting for rocks.
Answers
Answer:
Explanation:
a. Marginal benefit is an additional gain of benefit arises from the production of an additional unit of good.
b. if the price per rock is $10 dollars, the marginal benefit will be;
rock collected in an hour x price
7 x 20 = $140.
c. from the attached table, Zoe will make a maximum marginal benefit $140 for working for an hour.
d. from the attached table, Zoe will make a maximum of $70 dollars for working for an hour, beyond that the marginal benefit will begin to reduce.
Bird Enterprises has no debt. Its current total value is $47.2 million. Assume debt proceeds are used to repurchase equity.
a. Ignoring taxes, what will the company’s value be if it sells $18.5 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, round your answer to the nearest whole number, e.g., 1,234,567.)
b. Suppose now that the company’s tax rate is 21 percent. What will its overall value be if it sells $18.5 million in debt?
Answers
Answer:
a) as there is no taxes, under MM proposition the value of the firm remains the same at 472.2 millions
b) as there is income taxes, the value of the firm increases if levered As the interest expense provides a tax shield:
18,500,000 x 21% = 3,885,000
47,200,000 + 3,885,000 = 51,085,000
Explanation:
The reasoning behind is that while dividends (reutrn on equity) are not considered expenses interest (debt "return") do. Thus, financing with debt generates a positive tax shield as we decrease our fiscal obligations
If Bird Enterprises sells $18.5 million in debt and uses it to repurchase equity, its value remains $47.2 million when ignoring taxes. However, with a 21% tax rate, the value increases to $51.085 million due to tax savings from the debt's interest.
Explanation:a. Ignoring taxes, if Bird Enterprises sells $18.5 million in debt and uses the proceeds to repurchase equity, the total value of the company will remain unchanged at $47.2 million. The reason is that the company is simply replacing one form of financing (equity) with another (debt).
b. With a tax rate of 21 percent, the value of the company increases if it sells $18.5 million in debt. The interest on the debt is tax-deductible, which brings tax savings. So, the increase in value can be calculated as the debt multiplied by the tax rate. That is $18.5 million * 0.21 = $3.885 million. Therefore, the new total value of Bird Enterprises would be the original value of $47.2 million plus tax savings of $3.885 million or $51.085 million.
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Three examples of oligopolies in the United States are industries that produce or sell A. DVDs, college textbooks, and breakfast cereal. B. automobiles, athletic footware, and cigarettes. C. first minus class mail delivery, dog and cat food, and pharmaceutical drugs. D. groceries in supermarkets, toys, and aircraft. E. apples, pharmaceutical drugs, and beer.
Answers
Answer: Option B
Explanation: In simple words, oligopoly refers to a market structure in which there are small number of firms, each operating at a high level, that dominate the whole industry.
Generally these firms are dependent on each other and compete on the basis of other factors than price. The products sold by the firms in these industries are not perfect substitute of each other and possess some minor differences.
The entry and exit in these industries is quite difficult due to high rules and regulations and heavy investments.Thus, from the above we can conclude that the correct option is B.
Oligopolies are markets dominated by a few large firms. Such markets in the U.S. include the automobile, athletic footwear, and cigarette industries, where companies such as General Motors, Ford, Nike, Adidas, Philip Morris and Reynolds American hold the majority of market share.
Explanation:Oligopolies are market structures characterized by a small number of large firms holding the majority of market share. These markets sit somewhere between perfect competition and monopolies, with companies mutually interdependent on each others decisions regarding output, prices, and advertising. Their behaviour may fluctuate between acting like perfect competitors, driving costs down, or acting like a monopoly, if they collude and drive prices up.
Three examples of oligopolies in the United States are the industries that produce or sell automobiles, athletic footware, and cigarettes (Option B). The automobile industry, for instance, is dominated by a small number of large corporations, like General Motors, Ford, and Chrysler. Similarly, the athletic footwear market is largely controlled by firms like Nike and Adidas. The cigarette industry is another example, with major firms like Philip Morris and Reynolds American controlling a great part of the market.
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On January 1, Year 1, Andrei’s Design Inc., purchased equipment for $60,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 20,000 hours. The machine operated for 3,600 and 4,000 hours in Year 1 and Year 2, respectively. The company uses the units-of-production method. For how much would each item below be reported at the end of Year 2?a. Depreciation expense b. Accumulated depreciation c. Book value
Answers
Answer:
a. $10,000
b. $19,000
c. $41,000
Explanation:
The computations are shown below:
The depreciation per hour would be
= (Original cost - residual value) ÷ (estimated machine hours)
= ($60,000 - $10,000) ÷ (20,000 hours)
= ($50,000) ÷ (20,000 hours)
= $2.5 per hour
a. Now for the second year, it would be
= Machine hours in second year × depreciation per hour
= 4,000 units × $2.5
= $10,000
b. Accumulated depreciation would be
= (Machine hours in year 1 + Machine hours in year 2) × depreciation per hour
= (3,600 hours + 4,000 hours) × $2.5
= $19,000
c. And, the book value would be
= Original cost - accumulated depreciation
= $60,000 - $19,000
= $41,000
The company has the following beginning balances in its stockholders' equity accounts on January 1, Year 1: Common Stock, $100,000; Additional Paid-in Capital, $3,600,000; and Retained Earnings, $1,100,000. Net income for the year ended December 31, Year 1, is $510,000.Required:Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.
Answers
Answer Balance sheet December31
$
Common stock. 100,000
Paid in capital. 3,600,000
Retained earnings. 1,610,000
Total. 5,310,000
Explanation:
The equity section of the balance sheet contains the equity issued and other capital provided by the owner for running the company.
The retained earnings represents balance from the previous years income accounts balance.
The current year income account balance at the year end is added to the accumulated retained earnings balance at the beginning of the year.
This is why $510,000 was added to $1,100,000.
Assume that your parents wanted to have $ 130,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 5.5 % per year on their investments.
(a) How much would they have to save each year to reach their goal?
(b) If they think you will take five years instead of four to graduate and decide to have $ 170,000 saved just in case, how much would they have to save each year to reach their new goal?
Answers
Answer:
A) $4,409.8
B) $5,766.6
Explanation:
A)
To answer the first question, we must use the future value of an ordinary annuity formula:
[tex]FV = A ((1+i)^{n} -1)/i[/tex]
Where:
FV = Future value of the investment
A = Value of annuity
i = Interest rate
n = number of compounded periods
Now we simply plug the amounts into the formula:
130,000 = A ((1 + 0.055)^18-1) / 0.055
130,000 = A (29.48)
130,000 / 29.48 = A
$4,409.8 = A
Therefore, the parents would have to add $4,409.8 dollars each year to the college fund.
B)
To answer the second question, we use the same formula, only the values change:
170,000 = A ((1 + 0.055)^18-1) / 0.055
170,000 = A (29.48)
170,000 / 29.48 = A
$5,766.6 = A
Therefore, to have $170,000 saved by the 18th year, the parents would have to add $5,766.6 per year to the fund.
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows:
January 1, 2021 $ 1,940,000
March 1, 2021 1,680,000
June 30, 2021 1,880,000
October 1, 2021 1,680,000
January 31, 2022 432,000
April 30, 2022 765,000
August 31, 2022 1,062,000
On January 1, 2021, the company obtained a $4,800,000 construction loan with a 14% interest rate. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with interest rates of 6% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.
Required:
1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.
Answers
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
1. The amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method is $1,552,000 and $1,259,000, respectively.
2. The total cost of the building is $12,250,000.
3. The amount of interest that will appear in the 2021 and 2022 income statements is $0, respectively.
How is the specific interest method different from the weighted average method?The difference is that the specific interest method capitalizes the interest on each individual loan and the weighted average method combines all the debt and averages the interest payments on each loan to determine a weighted average interest rate.
Data and Calculations:Specific Loans:
January 1, 2021 Construction Loan = $4,800,000
Interest rate of construciton loan = 14%
Interest for the construction loan = $672,000 ($4,800,000 x 14%)
Interests on the Long-term Notes Payable:
$3,000,000 at 6% = $180,000 ($3,000,000 x 6%)
$7,000,000 at 10% = $700,000 ($7,000,000 x 10%)
Total interest expense for 2021 = $1,552,000 ($672,000 + $180,000 + $700,000)
Interests on the Long-term Notes Payable:
$3,000,000 at 6% = $120,000 ($3,000,000 x 6% x 8/12)
$7,000,000 at 10% = $467,000 ($7,000,000 x 10% x 8/12)
Total interest expense for 2022 = $1,259,000 ($672,000 + $120,000 + $467,000)
Total Costs of Building:January 1, 2021 $ 1,940,000
March 1, 2021 1,680,000
June 30, 2021 1,880,000
October 1, 2021 1,680,000
Total interest expense for 2021 $1,552,000
January 31, 2022 432,000
April 30, 2022 765,000
August 31, 2022 1,062,000
Total interest expense for 2022 $1,259,000
Total cost of building = $12,250,000
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Macrosoft Company reports net income of $59,000. The accounting records reveal depreciation expense of $74,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $54,000, $10,000, and $15,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method.
Answers
Answer:
Cash flow from Operations Amount in $
Net income 59,000
Depreciation expense 74,000
Increase in prepaid rent (54,000)
Increase in accounts payable 10,000
Increase in income tax payable 15,000
Net cash flows from operations 104,000
Explanation:
Information given about Macrosoft Company
Net income = $59,000
Depreciation expense = $74,000
Prepaid rent = $54,000
Accounts payable = $10,000
Income tax payable = $15,000
Cash flow from Operations Amount in $
Net income 59,000
Depreciation expense 74,000
Increase in prepaid rent (54,000)
Increase in accounts payable 10,000
Increase in income tax payable 15,000
Net cash flows from operations 104,000
Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.10; direct labor, $23.10, and overhead, $15.10. An outside supplier has offered to sell the product to Wheeler for $42.56.
If Wheeler buys from the supplier, it will still incur 40% of its overhead cost.Compute the net incremental cost or savings of buying. Select:a. $3.75 savings per unit.b. $3.75 cost per unit.c. $1.30 cost per unit.d. $4.32 cost per unit.$1.30 savings per unit.
Answers
Answer:
c. $1.30 cost per unit.
Explanation:
Wheeler Company
Total Cost per unit if Wheeler Company produce a product:
Total Cost = Direct Material + Direct Labor + Overhead
Total Cost = $9.10 + $23.10 + $15.10
Total Cost = $47.30 cost per unit --------------Option 1
Total Cost per unit if a product is purchased from outside supplier:
Total Cost = Purchase Price + 40% of Overhead Cost
Total Cost = $42.56 + ($15.10 x 0.40)
Total Cost = $42.56 + $6.04
Total Cost = $48.60 cost per unit --------------Option 2
Now we can calculate the Net Incremental Cost or Savings of buying as follows:
Net Incremental Cost = Option 2 - Option 1
Net Incremental Cost = $48.60 - $47.30
Net Incremental Cost = $1.30 cost per unit
Shelley wants to cash in her winning lottery ticket. She can either receive six, $193,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today?
Answers
Answer:
$1,045,517.95
Explanation:
Data provided in the question:
Semiannual payments = $193,000
Number of semiannual payments, n = 6
Annual interest rate, i = 6% = 0.06
when compounded semiannually = 6% ÷ 2 = 3% = 0.03
Now,
Single Payment = Semiannual payments × PVAF
here,
PVAF = [ 1 - (1 + i )⁻ⁿ ] ÷ i
or
PVAF = [ 1 - (1 + 0.03 )⁻⁶ ] ÷ 0.03
or
PVAF = 5.4172
Therefore,
Single Payment = $193,000 × 5.4172
= $1,045,517.95
Abel Corp. is a wholesaler for Global Electric in the French market. Global Electric discovered that Abel Corp. was diverting some of its goods to the English market. Abel could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. What is Abel engaged in?
Answers
Answer:
Abel Corp is engaged in maximizing profits.
Explanation:
By different reasons (trade barriers, exchange rate fluctuations, a shift in preferences in Britain increasing demand of Global Electric goods type), there is a market opportunity to increase profits per unit sold faster in Britain than France. IF Abel Corp is not bound by a commercial agreement with Global Electric to sell its products only in France, Global Electric cannot make a complaint about selling its products in another market.
Final answer:
Abel Corp. is engaging in diversion or parallel importing by buying goods in the French market and selling them in the English market for a higher profit, a practice that may breach distribution agreements.
Explanation:
Abel Corp., being a wholesaler for Global Electric in the French market, is engaging in a practice known as diversion or parallel importing. This activity involves Abel Corp. purchasing goods at a lower price intended for one market (French) and selling them in another market (English) to gain a higher profit. This practice can undermine territorial exclusivity, trademarks, and differ from gray market goods where no deception or piracy is involved but still may violate distribution agreements.
The global marketplace makes it easy for multinational corporations (MNCs) to extend their influence and reach across borders. However, activities like those performed by Abel Corp. can lead to tensions between corporations and the countries in which they operate. Debates over the benefits and downsides of these international trade practices and corporate globalization require a nuanced understanding of economics, law, and international relations.
Ducti is a small company that manufacturers duct-tape wallets. Ducti founder, David Pippenger, discovered there is a large demand for the wallets and watches that Ducti sells. In fact, its product line has expanded to include bags as well. Clearly, some consumers have a favorable attitude of Ducti products. To have a favorable perception, consumers must:
-experience problem recognition.-consult a public source of information.-consult a personal source of information.-make a post-purchase evaluation.-experience cognitive dissonance.
Answers
Answer:
The correct answer is: Experience problem recognition.
Explanation:
Problem recognition refers to the first stage when a consumer decides to make a purchase. Therefore, for a company wishing to achieve a favorable consumer perception of its products and services, the ideal is to establish the first step in the purchase decision process, which occurs when the consumer identifies a need and after identifying the problem, Looking for a product that meets your need, so this is one of the most important steps in the decision making process.
Companies should therefore identify which internal or external stimuli will be responsible for generating a need in their target audience, and thus increase the perception of their products and consequently the organizational results.
The person who acquires real property under the terms of a will is known as a ___________.
Answers
Answer:
Devisee
Explanation:
A devisee is a person who receives the real property i.e land and building, machinery, etc. by going through the term and conditions of the will.
It can be any person whether he or she is a family member, relatives, friends, etc who acquired the property based on the will's terms and conditions. He or she has the full right to acquired that property as he or she name is mentioned in the will.
In a _____ organizational structure, project managers work full-time on projects, while team members report to both functional managers and project managers.
Answers
Answer:
The correct answer is letter "D": strong matrix.
Explanation:
A strong matrix organization is one in which employees have two managers: the functional manager and the project manager. Authority is shared between these two and the approach aims to achieve balance in the hierarchy of each of them. In this type of organization project managers tend to work full time as well as most of the company's personnel.
Total stockholders' equity represents :
a. a claim to specific assets contributed by the owners.b. the maximum amount that can be borrowed by the enterprise.c. a claim against a portion of the total assets of an enterprise.d. only the amount of earnings that have been retained in the business.
Answers
Answer:
c. a claim against a portion of the total assets of an enterprise.
Explanation:
The statement of stockholder's equity comprises common stock, preferred stock, and retained earnings.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced. So, its claims against the portion of the total assets
Total stockholders' equity represents a claim against a portion of the total assets of an enterprise after all liabilities are deducted. It indicates the equity stake held by a company's investors, not solely the retained earnings or specific contributed assets.
Explanation:Total stockholders' equity indeed represents a claim against a portion of the total assets of an enterprise. This financial indicator reflects the residual interest in the assets of an enterprise after deducting liabilities. In other words, it embodies the equity stake currently held by a company's equity investors. For instance, if a company's total assets are worth $1,000,000 and it owes $200,000 in liabilities, its stockholders' equity would stand at $800,000, which means that the company's owners have a claim against these $800,000.
It's worth noting that stockholders' equity isn't a measure of the maximum amount that can be borrowed by a company, nor does it solely represent the earnings that have been retained in the business. Also, it's not just about the specific assets contributed by the owners—rather, it represents the owners' overall stake in the company, as calculated by subtracting total liabilities from total assets.
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Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing. Morgan appoints Barnes as his manager for the duration of the development program. During the course of the construction, Barnes decides to use funds specified for the subdivision for an office space project that Barnes alone has been interested in completing. Morgan is very angry on learning of Barnes' actions and terminates the agency. Barnes insists that the agency cannot be terminated in this manner. Is Barnes correct?
Answers
Answer:
No
Explanation:
Morgan appointed Barnes to manage a new subdivision. Barnes has been permitted to transact all affairs in connection with the subdivision. Therefore, Barnes is a general agent. In some situations, either party to an agency relationship has the authority to end that relationship at any time. So, Morgan has the power to terminate the agency
Answer:
Barnes is correct
Explanation:
The agency can be terminated by mutual agreement prior to giving the other party notice, since the office is part of the project means that diverting funds to a complete a part of a project before it's scheduled time does not warrant termination of agency except stated in the legal binding contract.
Lauren, Kathryn and Emily close their medical business, pool their assets and open a surf shop. The state where they reside assesses corporations at an 8% tax rate and 12% on individuals, regardless of income. The sole requirement the girls are considering is finding the most tax advantageous business entity. For the foreseeable future the girls are not going to take dividends from the profits but reinvest profits back into the business. The wisest business entity would be
a. professional corporation.
b. limited liability corporation.
c.C corporation.
d. S corporation.
Answers
The wisest business entity would be an S corporation. Option d S corporation is correct.
Considering the goal of finding the most tax-advantageous business entity and the fact that Lauren, Kathryn, and Emily plan to reinvest profits rather than take dividends, the best option would likely be an S corporation. While individual tax rates in their state are 12%, the corporate rate is 8%.
However, C corporations face double taxation on profits; first at the corporate level and then at the shareholder level when dividends are paid.
S corporations, on the other hand, allow profits (and losses) to be passed through directly to the owners' personal income without being subject to corporate tax rates. Since the group is not taking dividends, this circumvents the higher individual tax and avoids double taxation.
In contrast, a limited liability corporation (LLC) could also offer pass-through taxation, but the specifics depend on how the LLC is taxed; it can be treated as a partnership or as a corporation.
A professional corporation is typically used by licensed professionals, which might not be applicable to a surf shop business and can also have different tax implications. Option d S corporation is correct.
The method used to collect information to use through all phases of the project life cycle is called
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Work package
Answers
Answer:
Letter C is correct. Work breakdown structure.
Explanation:
Work breakdown structure is a method used so that there is a necessary hierarchy so that the flow of project steps can be fulfilled more effectively. It is used to achieve project objectives and deliverables.
At each level of the Work Breakdown Structure Diagram there should be a schedule, time and estimated budget, so that the scope of the project can be better understood and integrated.
A work breakdown structure is the method used to collect information through all phases of the project life cycle.
What is a work breakdown structure?A work breakdown structure refers to a method used where a necessary hierarchy is needed to allow the flow of project steps can be fulfilled more effectively.
A work breakdown structure is used achieve project objectives and deliverables.
Therefore, the Option C is correct.
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