In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $59,160, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000
Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.
Answers
Answer: See explanation
Explanation:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
The solution has been attached.
b. Residential's service department charge is (higher) than the other two divisions because Residential is a (heavy) user of service department services. Residential has many employees on a weekly payroll, which translates into a (larger) number of payroll transactions.
Related Questions
Use the drop-down menu to select the qualification best demonstrated in each example. Virgil is on time every day to his job as a Packaging Machine Operator. Lily analyzes a product's supply chain to identify ways to make it more efficient. Chase manages shipping schedules so products are sent on time. Zaida helps another worker get products ready for shipping.
Answers
Answer:
Dependability, critical-thinking skills, organizational skills, and teamwork.
Explanation:
I got it right.
Answer:
Noting here you answer is UP there ↑↑↑↑
Explanation:
TB MC Qu. 08-93 A company has established... A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: Multiple Choice $520 unfavorable. $400 unfavorable. $120 favorable. $520 favorable. $400 favorable.
Answers
Answer:
Direct material price variance= $520 favorable
Explanation:
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 1.9)*5,200
Direct material price variance= $520 favorable
Actual price= 9,880 / 5,200= $1.9
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answers
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
Zeffer is a small but growing bottling company that competes with large soft drink heavy-hitters. To set itself apart, Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas. The company hopes that these soft drinks will become popular in various sectors of the U.S. market. Answer the following question based on the scenario described above. Zeffer executives have decided to focus marketing efforts on the ________ market, since this group is expected to grow more rapidly than
Answers
Answer:
Hispanic
Explanation:
In the United States Hispanic population has continued to be responsible for half of the total population growth since 2010 till date.
In this time Hispanics contributed 52% to the 18.9 million population growth in the United States.
Based on this trend Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas and targeting the Hispanic market will make their product popular rapidly.
Trends such as more frequent shipments, lighter-weight shipments, and higher-value shipments:_________
a. help standardize rates on air and ocean shipments for incoming and outgoing freight
b. make ocean freight more effective than it has been in the past
c. increase the growth of airfreight traffic
d. have decreased the cost of containerization
Answers
Answer:
B
Explanation:
B is the answer I am not 100 percent sure
Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,200,000; June, $1,500,000; July, $1,400,000; and August, $1,400,000
Accounts Payable Merchandise Inventory
May 31 $150,000 $260,000
June 30 130,000 500,000
July 31 300,000 300,000
August 31 120,000 330,000
(1) Compute the budgeted amounts of merchandise purchases.
(2) Compute the budgeted amounts of cost of goods sold.
Answers
Answer:
1. Computation of Budgeted amount of Merchandise Purchases
Particulars June July August
Ending Accounts Payable $130,000 $300,000 $120,000
Payments on account $1,500,000 $1,400,000 $1,400,000
$1,630,000 $1,700,000 $1,520,000
Beginning Accounts Payable $150,000 $130,000 $300,000
Purchases $1,480,000 $1,570,000 $1,220,000
2. Computation of Budgeted amount of Cost of Goods Sold
Particulars June July August
Beginning inventory $260,000 $500,000 $300,000
Purchases $1,480,000 $1,570,000 $1,220,000
Cost of goods AFS $1,740,000 $2,070,000 $1,520,000
Ending Inventory $500,000 $300,000 $330,000
Cost of goods sold $1,240,000 $1,770,000 $1,190,000
At the beginning of 2020, Concord Company acquired a mine for $3,251,600. Of this amount, $124,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 12,100,000 units of ore appear to be in the mine. Concord incurred $210,800 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $49,600. During 2020, 2,634,000 units of ore were extracted and 1,894,000 of these units were sold.
Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Answers
Answer:
A. $737,520
B. $530,320
Explanation:
a. Computation for the total amount of depletion for 2020.
First step is to calculate the Depletion Rate
Depletion Rate = ($3,251,600 - $124,000 + $49,600 + $210,800)/12,100,000
Depletion Rate= $3,388,000/ 12,100,000
Depletion Rate= 0.28
Now let calculate the total amount of depletion for 2020.
2020 Total amount of depletion= 0.28 × $2,634,000
2020 Total amount of depletion= $737,520
Therefore the total amount of depletion for 2020 is $737,520
B. Computation for the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Expense amount charged= ($737,520/$2,634,000)* 1,894,000
Expense amount charged=0.28 *1,894,000
Expense amount charged=$530,320
Therefore the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020 is $530,320
In October, Pine Company reports 18,200 actual direct labor hours, and it incurs $217,000 of manufacturing overhead costs. Standard hours allowed for the work done is 21,700 hours. The predetermined overhead rate is $10.15 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $8.45 variable per direct labor hour and $43,100 fixed.
Required:
Compute the overhead controllable variance.
Answers
Answer:
$7,295 ( favourable)
Explanation:
According to the scenario, computation of the given data are as follows,
Actual direct labor hours = 18,200
Manufacturing OH cost = $217,000
Standard hours allowed = 21,700
Budgeted cost = $8.45
Budgeted fixed cost = $43,100
So, we can calculate overhead controllable variance by using following formula,
Overhead controllable variance = Budgeted OH (actual ) - Actual manufacturing Overhead
Where, Budgeted OH (actual ) = (21,700 × $8.35) + $43,100 = $224,295
By putting the value in the formula, we get
Overhead controllable variance = $224,295 - $217,000
= $7,295 ( favourable)
The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:______.
Human
Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost $54,000 $39,000
Space in square feet 13,000 10,000 26,000 40,000 64,000
Number of employees 10 15 20 40 25
1. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
a. $17,696.
b. $10,636.
c. $9,941.
d. $13,750.
e. $12,000.
2. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount):
a. $12,273.
b. $22,500.
c. $13,382.
d. $13,500.
e. $15,882.
3. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
a. $17,696.
b. $12,000.
c. $10,636.
d. $13,750.
e. $9,941.
4. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount):______.
a. $22,500.
b. $13,500.
c. $12,273.
d. $13,382.
e. $15,882.
Answers
Answer:
The Xtra Store
1. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:
e. $12,000.
2. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is:
d. $13,500.
3. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:
b. $12,000.
4. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is:
b. $13,500.
Explanation:
a) Data and Calculations:
Human Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost $54,000 $39,000
Space in square feet 13,000 10,000 26,000 40,000 64,000
Number of employees 10 15 20 40 25
1. Direct method of allocation:
Janitorial Department cost of $39,000
Sales #2 = $12,000 ($39,000 * 40,000/130,000)
2. Step-down method:
Human Resources cost of $54,000
Sales #3 = $13,500 ($54,000 * 25/100)
To increase productive capacity, a company is considering a proposed new plant. Which of the following statements is CORRECT? a. When estimating the project's operating cash flows, it is important to include both opportunity costs and sunk costs, but the firm should ignore the cash flow effects of externalities since they are accounted for in the discounting process. b. Since depreciation is a non-cash expense, the firm does not need to deal with depreciation when calculating the operating cash flows. c. The cost of capital used to discount cash flows in a capital budgeting analysis should be calculated on a before-tax basis. d. Capital budgeting decisions should be based on before-tax cash flows. e. In calculating the project's operating cash flows, the firm should not deduct financing costs such as interest expense, because financing costs are accounted for by discounting at the cost of capital. If interest were deducted when estimating cash flows, this would, in effect, "double count" it.
Answers
Answer:
e. In calculating the project's operating cash flows, the firm should not deduct financing costs such as interest expense, because financing costs are accounted for by discounting at the cost of capital. If interest were deducted when estimating cash flows, this would, in effect, "double count" it.
Explanation:
Weighted average cost of capital (WACC) is a calculation that takes into consideration all cost associated with capital obtained to finance a company.
This also includes cost such as interest expense.
In the given scenario when calculating the project's operating cash flow it is important to exclude such financing costs since they have been considered in the WACC calculation.
It will be a double deduction if it is considered again in operating cash flow calculation.
What amount should be paid on the maturity date to settle a one-hundred-twenty day loan dated March 19, 2013, if the present value is ₱15,600 at 13 2/7% simple interest?
A. ₱690.86
B. ₱16,290.86
C. ₱16,281.39
D. ₱681.39
Answers
Answer:
c
Explanation:
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Corporation Scenic, Inc.
Inventory $350,000 $111,000
Land 810,000 410,000
Equipment (net) 610,000 510,000
During 2019, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2019. In 2020, $300,000 in intra-entity sales were made with an original cost of $80,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
d. What is the consolidated balance in the ending Inventory account?
Answers
Answer:
a. Consolidated net income for Placid Lake and its subsidiary is $823,800.
b-1. Noncontrolling interest share of consolidated net income is $28,380.
b-2. Placid Lakes or controlling interest share of consolidated net income is $795,420. .
c-1. Noncontrolling interest share of consolidated net income is $34,300.
c-2. Placid Lakes or controlling interest share of consolidated net income is $789,500.
d. Consolidated balance in the ending Inventory account is $373,000.
Explanation:
Note: There is a minor error in the question where 2019 is used instead of 2020. This is therefore corrected to avoid confusion before answering the question. The complete question with the correction is therefore presented as follows:
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Corporation Scenic, Inc.
Inventory $350,000 $111,000
Land 810,000 410,000
Equipment (net) 610,000 510,000
During 2020, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2020, $300,000 in intra-entity sales were made with an original cost of $80,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
d. What is the consolidated balance in the ending Inventory account?
Explanation of the answers is now given as follows:
Note: See the attached excel file for all the calculation related parts a, b, and c.
d. What is the consolidated balance in the ending Inventory account?
Unrealized gross profit, 12/31/21 (w.2. in the attached excel file) = $88,000
Consolidated balance in the ending Inventory account = Book value of Placid Lake Corporation Inventory + Book value of Scenic, Inc. Inventory - Unrealized gross profit, 12/31/21 = $350,000 + $111,000 - $88,000 = $373,000
One day, Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes.
a. gross domestic product
b. net national product
c. national income
d. personal income
e. disposable personal income
Answers
Answer: See explanation
Explanation:
a. gross domestic product
The GDP is $400 which is the money that Barry collects for haircut.
b. net national product
Net National Product:
= GDP – Depriciation
= $400 - $50
= $350
c. national income
The national income is the total income that the residents of the country earns and this will be same as Net National Product which is $350
d. personal income
Personal income:
= National income – Retained earnings
= $350 - $100 - $30
= $220
e. disposable personal income
Disposable personal income:
= Personal income – Personal tax
= $220 - $70
= $150
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process:
Resources Activities Time per Unit Activity Driver
Supervision $60,000 Processing accounts 0.20 hr. No. of accounts
Phone and supplies 76,000 Issuing statements 0.10 hr. No. of statements
Salaries 242,000 Processing transactions 0.05 hr. No. of transactions
Computer 22,000 Answering customer inquiries 0.15 hr. No. of inquiries
Total 400,000
Total check processing hours 20,000
(practical capacity)
Required:
1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent.
$ per hour
2. Calculate the activity rates for the four activities. Round your answers to the nearest cent..
Processing accounts $ per account
Issuing statements $ per statement
Processing transactions $ per transaction
Answering inquiries $ per inquiry
If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
Answers
Answer:
1.$20 per hour
2. Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
$40,000
Explanation:
1. Calculation to determine the capacity cost rate for the checking account process
Using this formula
Capacity cost rate= Total resources / Total checking processing hours
Let plug in the formula
Capacity cost rate= $400,000 / 20,000
Capacity cost rate= $20 per hour
Therefore the capacity cost rate for the checking account process is $20 per hour
2. Calculation to determine the activity rates for the four activities.
Processing accounts= 0.20 × $20
Processing accounts= $4 per account
Issuing statements= 0.10 × $20
Issuing statements= $2 per statement
Processing transactions= 0.05 × $20
Processing transactions= $1 per transaction
Answering inquiries= 0.15 × $20
Answering inquiries= $3 per inquiry
Therefore the activity rates for the four activities are:
Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000
Using this formula
Cost of the issuing statements activity= Issuing statements*Total of issuing statement
Cost of the issuing statements activity
Let plug in the formula
Cost of the issuing statements activity= 20,000 × $2
Cost of the issuing statements activity= $40,000
Therefore the cost of the issuing statements activity is $40,000
In June 2000, the SEC brought civil charges against seven top executives of Cendant Company. The SEC alleged that these officials had, among other things, inflated income by more than $100 million through improper use of company reserves. These proceedings were a result of a longstanding investigation by the SEC of financial fraud that started back in the 1980s. In your opinion, in which stage of the criminal litigation process is this case? Why?
Answers
Answer:
First stage
Explanation:
Filing of criminal charges against an offender is usually the first stage in a criminal litigation process. The investigation carried out by SEC is a preliminary process and may not be counted as First stage.
The criminal litigation process is made up seven ( 7 ) process and the investigative part of the process is to Identify the civil charges
The following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75 Manufacturing Overhead 1.25 Selling and administrative 1.50 Fixed Costs: Manufacturing overhead $10,000 Selling and Administrative 5,000 The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total cost for Summertime Company
Answers
Answer:
Total cost= $105,000
Explanation:
Because the 15,000 units are in the relevant range, the fixed costs remain constant. Now, we need to calculate the total cost of 15,000 units:
Direct material= 15,000*2.5= 37,500
Direct labor= 15,000*0.75= 11,250
Variable overhead= 15,000*1.25= 18,750
Variable selling and administrative= 15,000*1.5= 22,500
Total variable cost= $90,000
Total fixed costs= $15,000
Total cost= $105,000
what happens in your retirement if you have a lapse in your years of work history?
Answers
Your monthly benefit will be lower
A lapse in your years of work history refers, There are generally the four ways by which we can handle it, various points are as leave it where it is, and the second point refers that, roll it over an ira.
What is employment?In most cases, employment refers to the status of having a paid job—of being employed. Employing someone is paying them to work. Employees are employed by an employer. Employment can also refer to the act of hiring individuals, as in We're trying to hire more women.
The employment lapse refers that, The working period of an employee and, The commencing of the individual's termination from the service date. He can continue to begin the performance services as an employee.
Therefore. As a result, The ends of the benefits, or the privileges are been applicable under a policy.
Learn more about employment here:
https://brainly.com/question/1361941
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Solving for dominant strategies and the Nash equilibrium Suppose Lorenzo and Neha are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Lorenzo chooses Right and Neha chooses Right, Lorenzo will receive a payoff of 6 and Neha will receive a payoff of 5
Neha
Left Right
Lorenzo Left 8,4 4,5
Right 5,4 6,5
1. The only dominant strategy in this game is for (Neha/Lorenzo) to choose (Right/Left)
2. The outcome reflecting the unique Nash equilibrium in this game is as follows: Lorenzo chooses (Right/Left) and Neha chooses (Right/Left) .
Answers
Answer:
1. The only dominant strategy in this game is for Neha to choose Right.
2. The outcome reflecting the unique Nash equilibrium in this game is as follows: Lorenzo chooses Right and Neha chooses Right.
Explanation:
A dominant strategy is a strategy that results in a player being better off no matter the choice his or her opponent in a game.
For this game, when Lorenzo plays Left, Neha will choose Right because 5 > 4. Also, when Lorenzo plays Right, Neha will still choose Right because 5 > 4. This shows that Neha will always play Right no matter what Lorenzo plays. This implies the dominant strategy for Neha is Right.
On the other hand, when Neha plays Left, Lorenzo will also play Left because 8 > 5. But when Neha plays Right, Lorenzo will choose will also play Right because 6 > 4. This shows that Lorenzo does not have any particular strategy that make him better off. Therefore, Lorenzo does not have a dominant strategy.
Therefore, we have:
1. The only dominant strategy in this game is for (Neha/Lorenzo) to choose (Right/Left)
Based on the analysis above, the only dominant strategy in this game is for Neha to choose Right.
This is because the dominant strategy for Neha is Right, but Lorenzo does not have a dominant strategy.
2. The outcome reflecting the unique Nash equilibrium in this game is as follows: Lorenzo chooses (Right/Left) and Neha chooses (Right/Left) .
Based on the analysis above, the outcome reflecting the unique Nash equilibrium in this game is as follows: Lorenzo chooses Right and Neha chooses Right.
The reason is that Neha will always play Right and Lorenzo will be better of by also playing Right because 6 > 4.
A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. But, because the borrowed money is for the purpose of your home, the interest is tax-deductible meaning that you can deduct the interest paid on this money from your income to reduce your taxes. If the current annual interest rate on a HELOC is 3.85\%3.85% and your tax rate is 32\2%, what is the after-tax interest rate you will pay on any borrowings under the HELOC
Answers
Answer:
2.618%
Explanation:
Current annual interest rate on a HELOC = 3.85%
Tax rate = 32%
After-tax interest rate = Before tax interest rate * (1 - Tax rate)
After-tax interest rate = 3.85% * (1 - 0.32)
After-tax interest rate = 0.0385 * 0.68
After-tax interest rate = 0.02618
After-tax interest rate = 2.618%
So, the after-tax interest rate you will pay on any borrowings under the HELOC is 2.618%.
Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset over the years. The original basis in the land was $500,000. Tonya has located a buyer that would like to finalize the transaction in December of the current year. Tonya's marginal ordinary income tax rate is 35 percent, and her capital gains tax rate is 20 percent.
Required:
a. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain and loss have on her tax liability?
b. In additional to the original facts, assume that Tonya reports the following nonrecaptured 1231 loss:
Year Net §1231 Gains/(Losses)
Year 1 ($200,000)
Year 2 0
Year 3 0
Year 4 0
Year 5 0
Year 6 (current year) ?
c. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain or loss have on her year 6 (the current year) tax liability?
d. Assuming the unrecaptured 1231 loss in part (b), as Tonya's tax advisorcould you make a suggestion as to when Tonya should sell the townhouse inorder to reduce her taxes? What would Tonya?s tax liability be if she adoptsyour recommendation??
Answers
Answer:
Explanation:
Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset over the years. The original basis in the land was $500,000. Tonya has located a buyer that would like to finalize the transaction in December of the current year. Tonya's marginal ordinary income tax rate is 35 percent, and her capital gains tax rate is 20 percent.
Required:
a. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain and loss have on her tax liability?
b. In additional to the original facts, assume that Tonya reports the following nonrecaptured 1231 loss:
Year Net §1231 Gains/(Losses)
Year 1 ($200,000)
Year 2 0
Year 3 0
Year 4 0
Year 5 0
Year 6 (current year) ?
c. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain or loss have on her year 6 (the current year) tax liability?
d. Assuming the unrecaptured 1231 loss in part (b), as Tonya's tax advisorcould you make a suggestion as to when Tonya should sell the townhouse inorder to reduce her taxes? What would Tonya?s tax liability be if she adoptsyour recommendation??
Use the following information for VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method.
Cash balance at prior year-end $40,000
Gain on sale of machinery $2,000
Increase in inventory 5,000
Cash received from sale of machinery 9,500
Depreciation expense 4,000
Increase in accounts payable 1,500
Cash received from issuing stock 8,000
Net income 23,000
Cash paid for dividends 1,000
Decrease in accounts receivable 3,000
Answers
Answer:
VPI CO
Statement of Cash flows
For the Current year ended December 31
Cash flow from Operating activities
Net Income $23,000
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation Expense $4,000
Gain on sale of Machinery $(2,000)
Changes in Current Operating assets and liabilities
Decrease in Accounts Receivable $3,000
Increase in Inventory $(5,000)
Increase in Accounts Payable $1,500
Net cash Provided by operating activities $24,500
Cash flows from Investing Activities
Cash Received from Sale of Machinery $9,500
Net cash Provided by Investing activities $9,500
Cash flows from financing Activities
Cash Received from Issuing Stock $8,000
Cash Paid for Dividend $(1,000)
Net cash Provided by financing activities $7,000
Net increase in Cash $41,000
Cash Balance at Prior Year-end $40,000
Cash Balance at Current Year-end $81,000
Two organizations are both in the technology industry. What is most likely true about their corporate cultures?
Answers
Answer:
it's about vision, value, practices
Understanding that unemployment benefits give workers the incentive to not look for work until their benefits run out, suppose an economist suggested that instead of giving workers up to 26 weeks of unemployment benefits that end once the person finds work, a person who loses his or her job would just get a single big check for 26 weeks of benefits, regardless of how long the worker is unemployed. Which of the following are true?
1. It is likely to reduce unemployment by increasing the incentives to look for work earlier.
2. It would be costly.
3. It would reduce the incentive to work.
4. It would have to be combined with skill training.
Answers
Answer:
1. It is likely to reduce unemployment by increasing the incentives to look for work earlier.
2. It would be costly.
Explanation:
A worker who had received the benefits of unemployment has now added incentive for looking in to work earlier. But the cost will increase since the incentive provided for the entire period of the 52 weeks which is not limited to the period of how long the person took to get employment again.
So it is most likely to decrease the unemployment by an increase in the incentive to look for work again. And it this would also increased the cost.
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $56,000
Sales tax 5,050
Shipment of machine 810
Insurance on the machine for the first year 510
Installation of machine 1,620
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answers
Answer:
Debit : Machine $58,430
Debit : Insurance expense $510
Debit : Sales tax $5,050
Credit : Cash $63,990
Being Cost of machine recognized as well as other expenses on the machine
Explanation:
The cost of the machine includes the purchase price plus any costs directly incurred in putting the asset in the location and condition indented by the management.
Cost of Machine is calculated as :
Purchase price $56,000
Shipment of machine $810
Installation of machine $1,620
Total $58,430
Other Costs are recognized as expenses in the income statement and not as part of the asset.
As a condition of being allowed to apply for a job with Good Hands Industries, Charles is asked to waive his right to object to workplace searches. After signing the waiver, he is offered a job, and he accepts it. Sometime later, he is subjected to a search. If Charles seeks legal redress on the grounds that the search violated his privacy rights, his employer:_________-
A. will be unable to successfully assert the waiver as a defense because it was not given voluntarily.
B. will be unable to successfully assert the waiver as a defense because Charles did not grant it intentionally.
C. will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer.
D. will be able to successfully assert the waiver as a defense because it was given in exchange for valuable consideration.
Answers
Answer:
The answer is C (will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer).
Explanation:
In the employment setting, there are instances where an employer could violate an employee privacy right. For instance, the Fourth Amendment’s prohibition on unreasonable search and seizure could be very strict on a public employer compared to a private employer where the private employers are given some degree of power too. Searching employees without their consent would be directly proportional to their breach of privacy that they have right to. Charles seeking legal redress is permitted since he initially signed to waive his right to object to workplace searches prior to his job offer. At every point where workplace searches is required by the employer especially when the searches are not done at public open places, the employee consent should be required too.
Wildhorse Co. had the following assets on January 1, 2022. Useful Life (in years) Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $68,000 Jan. 1, 2012 10 $ 0 Forklift 27,000 Jan. 1, 2019 5 0 Truck 33,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,700. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answers
Solution :
Journal Entry
Date Account and Explanation Debit Credit
1 Jan,2022 Accumulated depreciation-machine $ 68,000
Machine $ 68,000
30 June, Depreciation expense, [tex]$\left(\frac{27000}{5} \times \frac{6}{12}\right)$[/tex] $ 2700
2022 Accumulated depreciation- Forklift $ 2700
30 June, Cash $ 11,700
2022 Accumulated depreciation- Forklift, $ 18,900
[tex]$\left(\frac{27000}{5} \times 3.5 \right)$[/tex]
Gain on sale of forklift $ 3600
Forklift $ 27000
31 Dec, Depreciation expense, [tex]$\left( \frac{33400-3000}{8}\right)$[/tex] $ 3800
2022 Accumulated depreciation - Truck $ 3800
31 Dec, Accumulated depreciation - Truck, $ 22800
2022 [tex]$\left( \frac{33400-3000}{8} \times 6\right)$[/tex]
Loss on disposal of truck $ 10600
Truck $ 33400
Help a brother out ...............
Answers
Debt: 2,000 par value bonds with a 15-year maturity, 7.2% coupon, which are currently selling for 105 percent of par. Common stock: 1M shares outstanding, selling for $20 per share, and a fixed dividend of $2.50 per year. Preferred stock: 9,500 shares of preferred stock with a 6 percent required return, currently selling for $55 per share. What is the company's WACC
Answers
Answer:
17.03 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of Debt is calculated as :
Per $100 of bonds
FV = $100
PV = ($105)
PMT = $100 x 7.20% = $7.20
N = 15
P/yr = 1
r = ?
Using a financial calculator to enter values as above, cost of debt (r) is 6.66%
We always use after tax cost of debt
Therefore,
After tax cost of debt = interest x (1 - tax rate)
= 4.995%
therefore,
WACC = 12.50 % x 96.51% + 4.995% x 0.965 + 6.00 % x 2.52 %
= 17.03 %
A country is angry at a neighboring country for creating too much water and
air pollution. It passes a law that forbids its citizens from doing any business
with the other country until that country cleans up the pollution. If the
pollution continues, there will be no trade between the countries.
This is an example of which type of trade barrier?
A. Tariffs
B. Embargoes
C. Subsidies
D. Quotas
Answers
The trade barrier which is displayed is called as Embargoes. Hence, Option B is the correct statement.
What do you mean by Embargoes?An embargo is a central authority order that restricts trade or alternates with a precise country, commonly due to political or financial problems.
An embargo is commonly created due to damaging political or financial occasions among nations. It is designed to isolate a rustic and create problems for its governing body, forcing it to behave on the difficulty that brought about the embargo.
Hence, Option B is the correct statement.
learn more about embargo here:
https://brainly.com/question/873934
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est County Bank agrees to lend Cullumber Company $496000 on January 1. Cullumber Company signs a $496000, 6%, 6-month note. What entry will Cullumber Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Interest Payable 7440 Notes Payable 496000 Interest Expense 7440 Cash 510880 Interest Expense 14880 Notes Payable 496000 Cash 510880 Notes Payable 510880 Cash 510880 Notes Payable 496000 Interest Payable 14880 Cash 510880
Answers
Answer:
Dr Notes Payable $496,000
Dr Interest Payable $14,880
Cr Cash $510,880
Explanation:
Preparation of the journal entry that Cullumber Company will make to pay off the note and interest at maturity assuming that interest has been accrued to June 30
Dr Notes Payable $496,000
Dr Interest Payable $14,880
($496000*6%*6/12)
Cr Cash $510,880
($496,000+$14,880)
(To record note and interest at maturity)