Answer:
The company's days' sales in receivables is 22 days
Explanation:
In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:
Total Sales = Net Income / Profit Margin
= $190,000/9.4%=$2,021,276
Hence, Credit Sales = $2,021,276*0.85= $1,718,085
Accounts receivable turnover ratio = Credit sales / Accounts Receivable
= $1,718,085 /$106,351
= 16.15485
Therefore, Days sales in receivables = 365/16.15485= 22.59 days
The company's days' sales in receivables is 22 days
1) Define the external business environment of Jessops Group Limited.
Answer:
The external business environment of Jess-op Group Limited are factors such as economic, technological, regulatory, social etc. factors which the company does not have control over but affect the operation of the company.
Explanation:
The company has to adapt to its external business environment in order to continue to be successful.
Note: See the attached Microsoft word file for the full explanation. There is a difficulty in submitting everything here.
e Department of Traffic Security of a city is considering the purchase of a new drone for aerial surveillance of traffic on its most congested streets. A similar purchase 4 years ago cost $950,000. At an interest rate of 7% per year, what is the equivalent value today of the previous $950,000 expenditure?
Answer:
The equivalent value of the expenditure today is = $1,245,256.21
Explanation:
The equivalent today of the 950,000 would be the future value compounded at 7% per year.
FV = PV × (1+r)^n
FV - ?, PV - value 4 years ago, n- number of years, r- rate of return
PV - 950,000, n- 4, r-7%
FV = 950,000 ×(1.07^4)= 1,245,256.21
The equivalent value of the expenditure today is = $1,245,256.21
Consider a country where all money is currently held as cash and the money supply has a value of $2,200. A banking system is developed, and the residents of the country deposlt the $2,200 of cash into the banking system and decide they no longer want to hold any cash. If the reserve ratio is equal to 4%, then the banking system has the ability to create $_________ money supply in the economy will be equal to $__________
Answer: the banking system has the ability to create $52,800 of new money and the money supply in the economy will be equal to $55,000
Explanation:
To find out how much new money was created or rather how much can be created you can use the Money Multiplier. The money multiplier enables one to see how much money can be created in an economy given a certain reserve ratio.
The Money Multiplier is calculated by,
= 1/reserve requirement
Multiplying the Money Multiplier with the initial deposit in the bank gives the amount that that deposit can create.
With a Reserve Requirement of 4%, the Money Multiplier is,
= 1/4%
= 25
The Amount of money created in the economy is therefore,
= 25 * 2,200
= $55,000
The amount of New Money created will be the amount created less the initial deposit,
= 55,000 - 2,200
= $52,800
Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000. The break-even point in units is
Answer:
Break-even point (units)= 8,464 units
Explanation:
Giving the following information:
Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000.
First, we need to calculate the proportion of sales:
Product A= 7,500/10,000= 0.75
Product B= 2,500/10,000= 0.25
Now, using the following formula, we can determine the break-even point in units:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 328,000/ (0.75*33 + 0.25*56)
Break-even point (units)= 328,000/38.75
Break-even point (units)= 8,464 units
Matt Winne, Inc. issued $ 1 comma 000 comma 000 of 9%, nine-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually.
1) How much cash did the company receive upon issuance of the bonds payable?
2) Prepare an amortization table for the bond using theeffective-interest method, through the first two interest payments. (Round to the nearest dollar.)
3) Journalize the issuance of the bonds on January 1, 2018, and the first and second payments of the semiannual interest amount and amortization of the bonds on June 30, 2018, and December 31, 2018. Explanations are not required.
4) Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30, 2018
5) Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2018.
Answer:
1) $1,223,163
2) bond premium amortization coupon 1 = $8,305
bond premium amortization coupon 2 = $8,554
3)
January 1, 2018, bonds are issued
Dr Cash 1,223,163
Cr Bonds payable 1,000,000
Cr Premium on bonds payable 223,163
4)
June 30, 2018, first coupon payment
Dr Interest expense 36,695
Dr Premium on bonds payable 8,305
Cr Cash 45,000
5)
December 31, 2018, second coupon payment
Dr Interest expense 36,446
Dr Premium on bonds payable 8,554
Cr Cash 45,000
Explanation:
bonds price = PV of face value + PV of coupons
PV of face value = $1,000,000 / 1.03²⁰ = $553,675.75
PV of coupon payments = $45,000 x 14.8775 (annuity factor 3%, 20 payments) = $669,487.50
issue price = $553,675.75 + $669,487.50 = $1,223,163.25 ≈ $1,223,163
Dr Cash 1,223,163
Cr Bonds payable 1,000,000
Cr Premium on bonds payable 223,163
amortization coupon 1 = $45,000 - ($1,223,163 x 3%) = $45,000 - $36,695 = $8,305
amortization coupon 2 = $45,000 - ($1,214,858 x 3%) = $45,000 - $36,446 = $8,554
David Douglas, an announcer from local WTJM radio, has approached you with an exciting offer. He is planning to interview a popular touring group on his radio show next week, and he would like to conduct the interview in your cafe. David would bring all the equipment and promote the event. He explains, "It would bring a lot of business to the cafe, and you would not have to do anything. I am very experienced in promoting and organizing events and would only charge you $250 to take care of it all! I promise you that your sales will increase at the event. Are you interested
Answer:
Yes interested in the offer of David Douglas
Explanation:
The David Douglas is an announcer on radio. It has viewership and audience listens to him. If the interviews are conducted with popular touring group at our cafe it will boost sales of cafe and good customer service will result in words of mouth marketing of cafe. Projected sales will be nearly $11,298 and after deducting the expenses the profit will be nearly $1200. This is an opportunity to promote cafe sales and should accept the offer.
Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000. The excess of total fair value of controlling and noncontrolling interests over book value is assigned to; a building (PPE net) that is worth $100,000 more than book value, an unrecorded patent valued at $200,000 and goodwill valued at $300,000. Goodwill is assigned proportionately to the controlling and noncontrolling interests
Submission Requirements:
Using the ACT470_Mod03-Option01.xlsx Excel spreadsheet in the Module 3 folder:
Prepare the consolidated balance sheet at the date of acquisition by placing the appropriate entries in their respective debit/credit column cells.
Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is an [E] or [A] entry.
Use Excel formulas to derive the Consolidated column amounts and totals.
Using the "Home" key in Excel, go to the "Styles" area and highlight the [E] and [A] entry cells in different shades.
Consolidation Entries
Parent Subsidia Dr Cr Consolidated
Cash 920,000 215,000 0
Accounts receivable 782,000 330,000 0
Inventory 1,100,000 425,000 0
Equity investment 1,078,000 0
Property, plant and equipment (PPE), net 5,400,000 800,000
Patent 0
Goodwill 0
Total assets 9,280,000 1,770,000 0
Current liabilities 810,000 330,000 0
Long-term liabilities 4,000,000 500,000
Common stock 920,000 90,000 0
Additional paid-in capital 700,000 120,000 0
Retained earnings 2,850,000 730,000 0
Noncontrolling interest 0
Total liabilities and equity 9,280,000 1,770,000 0
Answer:
Explanation:
The objective here is to prepare the consolidated balance sheet at the date of acquisition by placing the appropriate entries in their respective debit/credit column cells.
To do that; We need to find both Consolidation entries and Consolidation Spreadsheet on the acquisition date from the given data set from the question.
From the question:
A parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000.
Consideration paid by the parent company for 70% share $10,78,000
Non Control Interest fair Value (30%) $ 4,62,000
Total fair value of subsidiary on the acquisition date $15,40,000
Less: Book value subsidiary on the acquisition date
Common Stock 90,000
APIC 1,20,000
Retained earnings 7,30,000 $9,40,000
Fair value in excess of book value $6,00,000
Excess fair value allocated to:
undervalued building $1,00,000
unrecorded patent $2,00,000
Goodwill $3,00,000
Balance $0
Consolidation entries and Consolidation Spreadsheet on the acquisition date are being embedded in the word document attached below due to vast columns of table sets that this answering box cannot contain.
Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 3%. The yield to maturity of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
Answer:
Value of treasury Note =$698,494.97
Explanation:
The value of the notes is the present value of the future cash inflows discounted at its YTM of 11%
Value of Notes = PV of interest + PV of RV
The value of Note can be worked out as follows:
Step 1 :Calculate the PV of Interest payment
Present value of the interest payment
PV = Interest payment × (1- (1+r)^(-n))/r
r-Yield to Maturity, n- number of years
Interest payment = 3% × $1,000,000 × 1/2= $15,000 .
Semi-annual interest yield = 11%/2 =5.5%
PV = 15,000 × (1 - (1.055)^(-5×2)/0.055) = 113,064.3874
Step 2 :PV of redemption Value
PV of RV = RV × (1+r)^(-n)
= 1000,000 × (1.055)^(-5×2)
= 585,430.57
Step 3
Calculate Value of the Notes
=113,064.3874 + 585,430.57
= $698,494.96
Value of treasury Note =$698,494.97
On January 1, Guillen Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.
Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Apr. 1 Issued 20,000 additional shares of common stock for $16 per share.
Dr Cash 320,000 (= 20,000 x $16)
Cr Common stock 320,000
June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.
Dr Retained earnings 42,875 (= 42,875 x $1)
Cr Dividends payable 42,875
July 10 Paid the $1 cash dividend.
Dr Dividends payable 42,875
Cr Cash 42,875
Dec. 1 Issued 1,000 additional shares of common stock for $20 per share.
Dr Cash 20,000 (= 1,000 x $20)
Cr Common stock 20,000
Dec. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.
Dr Retained earnings 179,887.50 (= 43,875 stocks x $4.10)
Cr Dividends payable 179,887.50
It may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
Answer: Apple's need to continually innovate
Explanation:
Here is the complete question:
may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
a. Apple's need to reverse recent poor performance
b. Appreciation of Apple's culture and core values
c. Apple's need to continually innovate
d. The need for the CEO to know the firm's core competencies as well as be able to develop new ones
Answer:
In 2011, after the resignation of Steve Jobs resigned as the Chief Executive Officer of Apples, Tim Cook became the chairman of the board, and was named as the new chief executive officer of Apple Inc.
Steve Cook was already working with Apple and he knew the culture and core values and it'll be easier to develop be ones as he knew the firm's core competencies.
The condition that existed at Apple which would have suggested a preference for them to hire from outside will be the need to continually innovate.
The company's culture focuses on
the maintenance of a high level of innovation which involves creativity coupled with a mindset which challenges standards and conventions. In line with the innovation value, hiring from outside might have been preferable.
Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded of good X to a. increase by 2.5%, and X is an inferior good. b. decrease by 2.5% and X is a normal good. c. increase by 10% and X is an inferior good. d. decrease by 10% and X is a normal good.
Answer:
a. increase by 2.5%, and X is an inferior good.
Explanation:
The income elasticity of demand is the ratio between the percentage change in demand and the percentage change in income.
The change in demand caused by a 5% decrease in income is:
[tex]-0.5=\frac{\%\ change\ demand}{\%\ change\ income} \\-0.5=\frac{D}{-5\%} \\D=+2.5\%[/tex]
Demand will increase by 2.5%. A good whose demand increases when consumer income decreases is called an inferior good.
Therefore, the answer is a. increase by 2.5%, and X is an inferior good.
At the end of 2021, Larkspur Co. has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,245.
A) Prepare the journal entry to record the write-off.
Credit
Enter an account title Enter a debit amount Enter a credit amount
What is the cash realizable value of the accounts receivable before the write-off and after the write-off?
Before Write-Off After Write-Off
Cash realizable value $ $
Answer:
January 24, 2022, Madonna Inc.'c account is written off
Dr Allowance for doubtful accounts 4,245
Cr Accounts receivable 4,245
the cash realizable value of the accounts receivable account:
before the write off = $653,700 - $24,200 = $629,500after the write off = ($653,700 - $4,245) - ($24,300 - $4,245) = $629,500The net balance of the account does not change because the allowance for doubtful accounts is a contra asset account that already decreased the accounts receivable balance.
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $9,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $152,500 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $30,400 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $22,200 for the fiscal year. Employee salaries for the month of June 2021 $22,000 will be paid on July 20, 2021. Prepare the necessary year-end adjusting entries at the end of June 30, 2021, for the above situations. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
1.Dr Insurance expense 2,300
Cr Prepaid insurance 2,300
2.Dr Interest expense 3,050
Cr Interest payable 3,050
3.Dr Deferred rent revenue 7,600
Cr Rent revenue 7,600
4.Dr Depreciation expense 5,550
Accumulated
depreciation—building 5,550
5.Dr Salaries and wages expenses 22,000
Cr Salaries and wages payable 22,000
Explanation:
The Mazzanti Wholesale Food Company's Journal entries
1.
Dr Insurance expense 2,300
(9200×3/12 months)
Cr Prepaid insurance 2,300
2.
Dr Interest expense 3,050
(152,500×8%×3/12months )
Cr Interest payable 3,050
3.
Dr Deferred rent revenue 7,600
(30,400×3/12months)
Cr Rent revenue 7,600
4.
Dr Depreciation expense 5,550
(22,200×3/12 months)
Accumulated
depreciation—building 5,550
5.
Dr Salaries and wages expenses 22,000
Cr Salaries and wages payable 22,000
A 22-year old, unmarried, new customer contacts you, explaining that he just inherited $10,000,000 and wishes to invest the money aggressively to produce superior returns. He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. For this client, the best recommendation would be a: A hedge fund B fund of hedge funds C growth fund D value fund
Answer:
B fund of hedge funds
Explanation:
The motive of the investor is to maximizing the return and minimizing the risk
The hedge fund refers to that fund in which the portfolio of investment is protected from the uncertainty of the market and at the same time it also generates the positive return when the market is at recession or in boom period
While on the other hand, the fund of the hedge fund is a portfolio or mix of hedge funds shares in which it is applied to any type of investment fund
According to the given situation, the new customers invest his money to generate high returns moreover he is also risk tolerant and finds the number of ways for enhancing the returns so for this situation, the best option fit is option B.
A friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing: 1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
Answer: 1. 12. 2. 1.090. 3. 0.08327
Explanation:
Here is the complete question:
friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:
1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
The value of f is:
2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).
The value of s is:
3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.
The natural rate of unemployment (in percent) is
1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.
The value of f is: 12
2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks
s = 1.090
The value of s is: 1.090
3. The natural rate of unemployment will be:
U = s/(s+f)
= 1.090/(1.090 + 12)
= 1.090/13.090
= 0.08327
City Auto Parts recently traded in store fixtures. The exchange had commercial substance. The old fixtures had a cost of $48,000 and accumulated depreciation of $14,000. City paid $101,000 for the new store fixtures. These new fixtures had a market value of $117,000. There is a loss of $18,000 on this exchange.True or False
Answer:
The correct option is true
Explanation:
The book value of the old fixtures at the date of exchange which is the cost less accumulated depreciation till date is computed thus:
Book value of old fixtures=$48,000-$14,000=$34000
Expected cash payable by the company for the new fixtures is the market value of the new fixtures minus the carrying value of the old fixtures.
Expected cash=$117,000-$34,000=$83,000.00
Loss on the exchange =cash paid -expected cash payable=$101,000-$83,000=$18000
Find the value of C, which makes the following two cash flow series equivalent. Assume that the market interest rate is 6% per year. Note: There are multiple approaches to solving this problem so be sure to consider the computational efficiencies of each approach before starting! $400 $400 $400 $400 $400 $125 $125 0 1 2 3 4 5 6 7 o 1 2 3 4 5 6 7 -$250 $250 $250
Answer:
Find attached complete question.
$ 750.10
Explanation:
In order to ascertain the value of C ,we need to equate the present value of the two streams of cash flows to each other as follows:
first stream:
$400/(1+6%)^1+$400/(1+6%)^2+$125/(1+6%)^3+$400/(1+6%)^4+$400/(1+6%)^5+$125/(1+6%)^6+$400/(1+6%)^7=$1,808.19
Second stream:
C/(1+6%)^1+C/(1+6%)^2-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5+C/(1+6%)^6+C/(1+6%)^7
-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5=-$594.74
C/(1+6%)^1+C/(1+6%)^2+C/(1+6%)^6+C/(1+6%)^7=C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651
simplification
C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651=C/(0.9434+0.8900+0.7050+0.6651)= 0.31216C
All in all:
$1,808.19 =-$594.74+ 0.31216C
$1,808.19+$594.74= 0.31216C
$2402.93 = 0.31216C
C=$2402.93* 0.31216 =$ 750.10
Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,000 of accumulated straight-line depreciation on the apartment building. Assuming Jeanie is in the highest tax bracket for ordinary income and the Medicare tax on net investment income applies, how much of her gain is taxed at 28.8 percent?
Answer:
$60,000
Explanation:
According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.
And, For this, the asset should be depreciated real property.
In the question, there is depreciation charged for apartment building so the same is eligible
The eligibility is allowed up to $60,000 and the same is to be considered
Use the following 10% interest factors. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 7 periods 4.86842 9.48717 8 periods 5.33493 11.43589 9 periods 5.75902 13.57948 What amount should be recorded as the cost of a machine purchased December 31, 2020, which is to be financed by making 8 annual payments of $16000 each beginning December 31, 2021? The applicable interest rate is 10%. $182974 $92144 $85359 $112000
Answer:
The cost of the machine will be $85,358.88
Explanation:
To calculate the present value of the machine is given by:
Present value=$16000*Present value of annuity factor(10%,8)
=$16000*5.33493
= $85,358.88
Mcleod, Inc. incurred fixed costs of $ 400 comma 000. Total costs, both fixed and variable, are $ 450 comma 000 when 59 comma 000 units are produced. It sold 30 comma 000 units during the year. Calculate the variable cost per unit. (Round your answer to the nearest cent.)
Answer:
Unitary variable cost= $1.72
Explanation:
Giving the following information:
Mcleod, Inc. incurred fixed costs of $400,000.
Total costs= $450,000
Units produced= 59,000
First, we need to calculate the total variable cost:
Total variable cost= total cost - total fixed cost
Total variable cost= 450,000 - 400,000
Total variable cost= 50,000
Now, the unitary variable cost:
unitary variable cost= 50,000/29,000
unitary variable cost= $1.72
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)
Description Date Purchased Basis Date Sold Amount Realized
Stock A 1/23/1995 $7,850 7/22/2019 $4,980
Stock B 4/10/2019 15,200 9/13/2019 18,970
Stock C 8/23/2017 12,250 10/12/2019 17,340
Stock D 5/19/2009 5,710 10/12/2019 13,300
Stock E 8/20/2019 7,720 11/14/2019 3,800
Required:
a. What is Graysonâs net short-term capital gain or loss from these transactions?
b. What is Graysonâs net long-term gain or loss from these transactions?
c. What is Graysonâs overall net gain or loss from these transactions?
Answer: a. -$150 b. $9810 c. $9660
Explanation:
Stock B and E were chosen as the short term for the holding period while stock A, C, D were chosen as long term for the holding period because the time duration is longer.
For question (a), Grayson's net short-term capital loss from these transactions was -150.
For question (b), Grayson's net long-term gain from these transactions was $9810.
For question (c), Grayson's overall net gain from these transactions was:
= $9810 - $150
= $9660
Kindly check the attached document for further analysis.
Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan's parents elected to report Stan's income on his parents' return, what would the tax on Stan's income be?
Answer:
The answer is $393
Explanation:
Solution
In this case, we will find the tax on Stan's income which is stated below:
Stan's adjusted gross income = 4500
The standardized deduction = 1050
The unearned taxable income = 3450
With ordinary rate, the less statutory deduction is = 1050
The taxable income that is subject to his parent's rate = 2400
The tax with ordinary rate = (1050 * 10%) =105
The Tax with parent's rate is = (2400 * 12%) = 288
Hence,
The tax on Stan's income would be = 105 + 288 = $393
Note: Kindly find an attached copy of the Tax rate schedules as part of the question to this solution
Stockholders’ equity of ABC Company consists of 88,000 shares of $5 par value, 10% cumulative preferred stock and 320,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company’s inception. ABC did not declare any dividends in the prior year, but it now declares and pays a $165,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company.
Answer:
Explanation:
Calculation of dividend amount for the preferred shareholders
Preferred Dividend =Per value of share * Dividend rate * Number of years
=88,000*5 * 10% * 2\
=$88,000
Thus cash dividend paid to common shareholder is $88,000
Calculations of cash dividend amount for common shareholder
Common share dividend= $165,000 - $88,000
=$77,000
Thus cash dividend paid to common shareholder is $77,000
Specialization and the gains from trade make the economy PPF outward bowed because _______. A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs B. all producers have bowed-out PPFs, and the economy PPF is the horizontal sum of the individual PPFs C. as more of a good is produced, people are willing to pay less for each additional unit of the good D. a good is initially produced by producers with lower opportunity costs and eventually produced by producers with higher opportunity costs
Answer:
A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs
Explanation:
The production possibility frontier is a curve that shows the two combinations of goods and services produced in an economy.
Because of trade a country can specialise in the production of goods for which it has a lower opportunity cost in its production and import goods for which it has a higher opportunity cost.
This makes the ppf bowed out as the country produces more of the good for which it has a lower opportunity cost and less of the good for which it has a higher opportunity cost.
I hope my answer helps you
Torres Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Torres Company received on May 12.
a. May 1 Sold goods costing $3,000 to Campbell Company on account, $5,000, terms 1/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $110.
b. May 7 Campbell Company returned undamaged merchandise previously purchased on account, $200.
c. May 12 Received the amount due from Campbell Company.
Answer:
Torres Company received $4,800 on May 12.
Explanation:
When The Sale was made, the following entries apply :
J1
Trade Receivable $5,000 (debit)
Sales Revenue $5,000 (credit)
J2
Cost of Sales $3,000 (debit)
Merchandise $3,000 (credit)
J3
Freight Expenses $110 (debit)
Cash $110 (credit)
When Campbell Company returned Merchandise :
J1
Sales Revenue $200 (debit)
Trade Receivable $200 (credit)
When Campbell Company pays for the goods
The payment is made 2 days out of the discount period, therefore not eligible for discount.
Settle amount in full less Return Allowance of $200
Trade Receivable $4,800 (debit)
Cash $4,800 (credit)
Conclusion :
Torres Company received $4,800 on May 12.
Complete the following statements to demonstrate your understanding of the relationships among the different structures of the Federal Reserve.
The Board of Governors of the Federal Reserve is in charge of setting and overseeing monetary policy and is headed by the (speaker of the house/president of the bank of nwe york/president of the federal open marker committee/chairman of federal reserve) . Monetary policy is supposed to be (independent of/coordinated with) Congress and the president. This goal is aided by the fact that the governors' (two years term dont allow/ 14 year terms allow)
them to outlast the president who appointed them.
Because Congress initially intended to create a decentralized banking system, there are also smaller branches of the Federal Reserve known as district banks.
The presidents of the district banks take turns serving as members of the (board of goverment/ federal open market committee)
The Federal Open Market Committee (FOMC) is the official policymaking body of the Federal Reserve and is made up of (all board governors and five bank presidents/ all bank presidents and five board governors/ memebers of the board of governors/ distrtct bank presidents) . The mechanism for translating FOMC policy into action is (the federal funds rate/the reserve requirement/ the statement of open-market operations/ an FOMC directive) , which outlines the course of monetary policy for the next six weeks.
Answer:
The Board of Governors of the Federal Reserve is in charge of setting and overseeing monetary policy and is headed by the chairman of federal reserve. Monetary policy is supposed to be independent of Congress and the president. This goal is aided by the fact that the governors' 14 year terms allow them to outlast the president who appointed them.
Because Congress initially intended to create a decentralized banking system, there are also smaller branches of the Federal Reserve known as district banks.
The presidents of the district banks take turns serving as members of the federal open market committee.
The Federal Open Market Committee (FOMC) is the official policy-making body of the Federal Reserve and is made up of district bank presidents. The mechanism for translating FOMC policy into action is the reserve requirement, which outlines the course of monetary policy for the next six weeks.
Explanation:
The Federal Reserve is the U.S. equivalent of a central bank. It conducts the nation's monetary policy, provides and maintains an effective and efficient payments system, and supervises and regulates banking operations.
A couple with a newborn son wants to save for their child's college expenses in advance. The couple can establish a college fund that pays 7% annual interest. Assuming that the child enters college at age 18, the parents estimate that an amount of $40,000 per year will be required to support the child's college expenses for four years.
Determine the equal annual amounts that the couple must save until they send their child to college. (Assume that the first deposit will be made on the child's first birthday and the last deposit on the child's 18th birthday. The first withdraw will be made at the beginning of the freshman year, which also is the child's 18thbirthday.)
Answer:
The equal annual amounts that the couple must save until they send their child to college is $4,264.006 per year
Explanation:
Kindly check attached picture for detailed explanation
An investor requires a 3 percent increase in purchasing power in order to induce her to lend. She expects inflation to be 2 percent next year. The nominal rate she must charge is about:__________.a) 1 percent.b) 2 percent.c) 3 percent.d) 5 percent.e) 7 percent.
Answer:
Nominal rate = 5%
Explanation:
Given:
Require rate = 3%
Inflation rate = 2%
Find:
Nominal rate = ?
Computation:
⇒ Nominal rate = Require rate + Inflation rate
⇒ Nominal rate = 3% + 2%
⇒ Nominal rate = 5%
Therefore, The nominal rate she must charge is 5%
Elegant Limited sells restored classic cars. Most of its customers are private buyers who buy cars for themselves. However, some of them are investors who buy multiple cars and hold them for resale. All sales of Elegant Limited are for cash. Depict the association and cardinality for the sales of cars at Elegant Limited based on REA model.
Answer:
Elegant Limited
Depiction of the Association and Cardinality for the Sales of Cars based on the REA Model:
1. Association: This is about the relationships that exist among the economic elements involved in the REA model. They are Economic Resources, Economic Events, and Economic Agents. These elements interact during each business transaction in such interconnected processes that business transactions cannot be complete without any element.
For example, the economic resources during the sale of a car at Elegant Limited are 1) a car and 2) money. These are exchanged between Elegant Limited and the customer and vice versa. In the same light, an economic event takes place during the exchange of either a car or money. While a car is a physical resource (asset), money is a financial resource (asset). For each of these two events, the economic agents who must interact are the workers at Elegant Limited and the customer whether private buyers or investors.
2. Cardinality: This refers to the elements that are involved in the REA model. They are three as already described. They are Economic Resources, Economic Events, and Economic Agents. No business transaction is complete where any element is not present. So, these elements are cardinal in the relationship.
Explanation:
The REA model is an accounting system re-engineering model originally proposed by William E. McCarthy as a generalized accounting model. It contains the concepts of resources, events and agents (McCarthy 1982).
The model views accounting data collection as a system to collect data about the resources, events, and agents within business processes, thereby suggesting that the basic data collected should be about the resources, events, and agents involved in an exchange.
Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $1,800,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $900,000 of goodwill. Should Robinson Company record this goodwill?
Answer:
Explanation:
Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.
1.
Goodwill calculation
Purchase price - $2,500,000
Fair value - $1,800,000
Goodwill - $700,000
2.
No
Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.
3
No
Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit