Answer
Windsor, Inc
Income Statement (Partial)
For the year October 31, 2022
Revenue
Sales $908,100
Less: Sales return and allowance $19,800
Sales Discount $14,500
$34,300
Net Sales $837,800
Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods
Answer:
the cost of these goods is $126,000
Explanation:
The computation of the cost of these goods is shown below:
= List price × (1 - first discount rate) × (1 - second discount rate)
= $175,000 × (1 - 0.20) × (1 - 0.10)
= $126,000
Hence, the cost of these goods is $126,000
We simply applied the above formula so that the correct amount could come
The same is to be relevant
The cost of goods sold is the value of goods at which they are made available to the customers at an affordable price. The costs are the particular term used for the product's value to specify that the goods and services when availed to the customers carries a value or the price.
The computation of the cost of these goods is shown below:
[tex]\begin{aligned}\text{Cost of Goods}&= \text{list price} \times (1 - \text{first discount rate}) \times (1 - \text{second discount rate})\\&=\$175,000 \times (1 - 0.20)\times(1 - 0.10)\\& = \$126,000\end{aligned}[/tex]
Hence, the cost of these goods is $126,000
To know more about the calculation of the cost of goods, refer to the link below:
https://brainly.com/question/19151327
Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.
Planning Data
Annual November
Fixed manufacturing overhead $1,200,000 $100,000
Variable manufacturing overhead 2,400,000 220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 20,000
Data for November
Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed manufacturing overhead $101,200
Variable manufacturing overhead $214,000
The fixed overhead volume variance for November was
a. $1,200 unfavorable.
b. $5,000 favorable.
c. $5,000 unfavorable.
d. $10,000 favorable.
Answer:
Manufacturing overhead volume variance= $1,200 unfavorable
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Fixed Predetermined manufacturing overhead rate= 1,200,000/240,000
Fixed Predetermined manufacturing overhead rate= $5 per machine hour
Now, to calculate the fixed manufacturing overhead volume variance, we need to use the following formula:
Manufacturing overhead volume variance = Actual Factory Overhead - Budgeted Allowance Based on Standard Hours
Manufacturing overhead volume variance= (101,200) - (5*20,000)
Manufacturing overhead volume variance= $1,200 unfavorable
Linder Corporation invested $70,000 cash in marketable securities on September 1. On September 7 the company sold $10,000 of these investments for $15,000. On September 28 Linder sold $6,000 of the securities for $4,000.
Required:
a. Record the purchase of marketable securities on September 1.
b. Record the sale of marketable securities on September 7.
c. Record the additional sale of marketable securities on September 28.
d. Record the necessary month end fair value adjustment on September 30. The market price for Linder Corporation's remaining unsold securities was $58,000.
Answer and Explanation:
Find attached
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree
Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
Martinez Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,340,000 $2,223,000
2020 2,808,000 2,925,000
2021 3,451,500 3,042,000
2022 4,212,000 3,510,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows:
2019, $327,600 loss; 2020, $105,300 loss; 2021, $12,870 loss; and 2022, $29,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Required:
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Answer:
2020 $11,700
2021 $8,080
2022 $14,040
Explanation:
PBO = Projected benefit Obligation
PA = Plan Asset
Acc. OCI = Accumulated OCI Gain / Loss
Min. Amort loss = Minimum Amortization of Loss
Year : PBO ; PA ; Corridor 10% ; Acc. OCI ; Min. Amort loss
2019 : $2,340,000 ; $2,223,000 ; $234,000
2020 : $2,808,000 ; $2,925,000 ; $280,800 ; $397,800 ; 11,700
2021 : $3,451,500 ; $3,042,000 ; $345,150 ; $264,350 ; 8,080
2022 : $4,212,000 ; $3,510,000 ; $421,200 ; $280,800 ; 14,040
You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:
Answer:savings
Explanation:saves the rest of the money where she can reuse it
Federated Fabrications leased a tooling machine on January 1, 2021, for a three-year period ending December 31, 2023. The lease agreement specified annual payments of $48,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2022. The company had the option to purchase the machine on December 30, 2023, for $57,000 when its fair value was expected to be $72,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life was six years with no salvage value. Federated was aware that the lessor’s implicit rate of return was 10%.
Required:
a. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease.
b. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term.
c. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term.
Answer:
All requirements solved
Explanation:
we can calculate the right of use asset and lease liability by determining the present value of all future cash flows and after calculating present values sum them up
Requirement 1: Right of use asset and lease liability
Present value (year 0) = 48,000 / (1+10%)^0 = 48,000
Present value (year 1) = 48,000 x 1/(1+10%)^1
Present value (year 1) = 48,000 x 0.909 = 43,636
Present value (year 2) = 48,000 x 1/(1+10%)^2
Present value (year 2) = 48,000 x 0.826 = 39,670
Present value (year 3) = 57,000 x 1/(1+10%)^3
Present value (year 3) = 57,000 x 0.751 = 42,825
Total present value = 48,000 + 43,636 + 39,670 + 42,825
Total present value = 174,131
Right of use asset and lease liability = 174,131
Requirement 2: Amortization schedule
Date payments effective interest Decrease Outstanding
10% in balance balance
1/1/21 174,131
1/1/21 48,000 48,000 126,131
12/31/21 48,000 12,613 35,387 90,744
12/31/22 48,000 9.074 38,926 51,818
12/31/23 48,000 5,182 51,818
Requirement 3: Journal entries
Amortization expense = 174,131/6
Amortization expense = 29,022
1/1/21
Dr Righ of use 74,131
Cr Lease payable 74,131
1/1/21
Dr lease payable 48,000
Cr cash 48,000
12/31/21
Dr Lease payable 35,387
Dr Interest expense 12,613
Cr Cash 48,000
12/31/21
Dr Amortization expense 29,022
Cr Right of use 29,022
12/31/22
Dr Lease payable 38,926
Dr Interest expense 9,074
Cr Cash 48,000
12/31/22
Dr Amortization expense 29,022
Cr Right of use 29,022
12/31/23
Dr Lease payable 51,818
Dr Interest expense 5,182
Cr Cash 57,000
12/31/23
Dr Amortization expense 29,022
Cr Right of use 29,022
You are preparing the financial statements for the Johnson family. To begin with you just want to identify each line and indicate where it will be going (e.g. Balance Sheet, Income Statement). Just write Balance Sheet and or Income statement next to each line.
Home Value $549,000
Joint Savings balance $5,400
Tom's 2014 Salary Before Taxes was $78,000
Kate's 2014 Salary Before Taxes was $84,000
Fed income taxes, state income taxes and FICA combined totaled $46,120 (paid)
2014 property taxes were $14,000 (paid)
Mortgage $300,000
House Payment plus insurance per month $2400
Kate bought Microsoft stock in 2012 and they still own it. It's worth $40,0000
Tom's 401k at work has several mutual funds worth a total of $120,000
Tom has a 2002 VW GTI worth about $3,000
Kate has a 2013 Audi S6 worth about $35,000
Car loan on Audi totals is $25,000
Car Payment is $1583
Car insurance for 2014 was $2000 (paid)
Credit Card Balance $4,000
Tom's monthly contribution o his 401k is $1,000
Joint Checing account balance $1,200
Answer:
Home Value $549,000 - Balance Sheet
Joint Savings balance $5,400 - Balance Sheet
Tom's 2014 Salary Before Taxes was $78,000 - Income Statement
Kate's 2014 Salary Before Taxes was $84,000 - Income Statement
Fed income taxes, state income taxes and FICA combined totaled $46,120 (paid) - Income Statement
2014 property taxes were $14,000 (paid) - Income Statement
Mortgage $300,000 - Balance Sheet
House Payment plus insurance per month $2400 - Income Statement
Kate bought Microsoft stock in 2012 and they still own it. It's worth $40,0000 - Balance Sheet
Tom's 401k at work has several mutual funds worth a total of $120,000 - Balance Sheet
Tom has a 2002 VW GTI worth about $3,000 - Balance Sheet
Kate has a 2013 Audi S6 worth about $35,000 - Balance Sheet
Car loan on Audi totals is $25,000 - Balance Sheet
Car Payment is $1583 - Income Statement
Car insurance for 2014 was $2000 (paid) - Income Statement
Credit Card Balance $4,000 - Balance Sheet
Tom's monthly contribution o his 401k is $1,000 - Income Statement
Joint Checing account balance $1,200 - Balance Sheet
A company sold land, investments, and issued their own common stock for $11 million, $15 million, and $21 million, respectively. They also purchased treasury stock, equipment, and a patent for $2 million, $2 million, and $4 million, respectively. a. What amount should the company report as net cash flows from investing activities
Answer:
Net cash flow from investing activities: $20 million
Net cash flow from financing activities: $19 million
Explanation:
a. Calculation for flow from investing activities
Sale of land $11
Sale of investments 15
Purchase of equipment (2)
Purchase of patent (4)
Net cash flow from investing activities: $20
b. Calculation for Cash flow from financing activities
Issuance of common stock $21
Purchase treasury stock (2)
Net cash flow from financing activities: $19
Therefore Net cash flow from investing activities is $20 million while Net cash flow from financing activities is $19 million
a. On December 31, Gina receives a distribution of $140,000 cash in liquidation of her partnership interest. Nothing is stated in the partnership agreement about goodwill. Gina's outside basis for the partnership interest immediately before the distribution is $90,000. (1) How much is Gina's recognized gain from the distribution
Answer:
some information is missing in this question:
the fair market value of Gina's interest int he partnership = $480,000 x 25% = $120,000
Gina is receiving $140,000 in cash, therefore, $20,000 can be considered goodwill.
Since Gina's outside basis is $90,000 (= $75,000 of cash + $15,000 of capital assets), she cannot claim any capital gain, instead she must declare an ordinary gain from the distribution (ordinary income) = $140,000 - $90,000 = $50,000.
The partnership can deduct Gina's gain ($50,000) since no part of it included property payment.
Question 5
1 pts
The optimal level of inflation is not zero
True
False
Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.
Answer:
Fixed annuities
Variable annuities
Indexed annuities
Explanation:
Annuities are defined as contract that pays out regular amounts over time at a particular interest rate.
Usually there is an initial investment of a lumps sum or a series of deposits.
Annuities are classified based on level of risk and payout potential into 3:
- Fixed annuity give out a fixed guaranteed payout amount. The risk is low but the payout is low. Slightly above certificate of deposits.
- Variable annuity is one that gives room for a higher payout but risk is also higher. A set of mutual funds are invested in and payout is dependent on how they perform.
- Indexed annuity gives higher return that is tied to the performance of an index like the S&P 500. The risk is lower than that of variable annuity
A company had a tractor destroyed by fire. The tractor originally cost $141,000 with accumulated depreciation of $74,400. The proceeds from the insurance company were $36,000. The company should recognize:
Answer:
The correct answer is "$30,600". The further explanation is given below.
Explanation:
The given values are:
Tractor's cost
= $141,000
Accumulated depreciation
= $74,400
Now,
The book value on sale's date will be:
= [tex]Cost-Accumulated \ depreciation[/tex]
= [tex]141,000-74400[/tex]
= [tex]66,600[/tex] ($)
The Loss on sale is:
= [tex]66,600-36,000[/tex]
= [tex]30,600[/tex]
Bird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through June of the same year. Bird received the following royalties from Brian:
March 15 September 15
20X4 $5,000 $7,500
20X5 6,000 8,500
Brian estimated that the sales of the trademarked items would total $30,000 for July through December 20X5. In Bird's 20X5 Income Statement, the royalty revenue should be:______.
a. $13,000.
b. $14,500.
c. $19,000.
d. $20,500.
Answer:
a. $13,000
Explanation:
Calculation for what royalty revenue should be
First step is to find the estimated amount for the second half of the year
Royalties for the second half =
15%*$30,000
Royalties for the second half= $4,500
Now let Compute for the total royalty revenue
Total royalty revenue for 20X5=$8,500+$4,500
Total royalty revenue for 20X5=$13,000
Therefore the royalty revenue should be $13,000
If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journal would be
Answer:
the quoted bid price would be 97:16
Explanation:
the quoted ask price will be 97:50
The quoted bid price is the price at which buyers are willing to purchase a security, while the quoted ask is the price at which sellers are willing to sell their securities. There is always a difference between both of them, and it is called the spread.
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes Iin 2022.
Transaction General Journal Debit Credit
Income tax expense
Deferred tax asset
Income taxes payable 340.0
Answer:
Ryan Management
Journal Entries
Date Particulars Debit'million Credit'million
31-Dec-22 Income tax expense $219.50
To Income tax payable $190
($760 * 25%)
To Deferred tax asset $29.50
[($194 - $76)*25%]
(To record income tax expense and reversal of Deferred
tax asset)
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021:
Penske Stanza
Revenues $(842,000 ) $(568,000 )
Cost of goods sold 299,700 142,000
Depreciation expense 207,000 304,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/21 (668,000 ) (222,000 )
Current assets 572,000 566,000
Copyrights 1,076,000 449,500
Royalty agreements 604,000 1,180,000
Investment in Stanza Not given 0
Liabilities (546,000 ) (1,631,500 )
Common stock (600,000 )($20 par) (200,000 ) ($10 par)
Additional paid-in capital 150,000 80,000
On January 1, 2013, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.
a. As of December 31,2013, what is the consolidated copyrights balance?
b. For the year ending December 31,2013, what is consolidated net income?
c. As of December 31,2013, what is the consolidated retained earnings balance?
d. As of December 31,2013, what is the consolidated balance to be reported for goodwill?
Answer:
a. $1,625,500
b. $437,300
c. $1,025,300
d. $58,000
Explanation:
a. As of 31, December 2013, what is the consolidated copy rights balance
b. For the year ending, December 31, 2013, what is consolidated net income
c. As of December 31, 2013, what is the consolidates retained earnings balance
d. As of December 31, 2013 what is the consolidated balance to be reported for Goodwill.
Please find attached detailed explanations to the above questions and answers.
Consider a simple example economy where there are two goods, coconuts and restaurant meals (coconut-based). There are two firms. A coconut producer collects and sells 10 million coconuts at $2.00 each. The firm pays $5 million in wages, $0.5 million in interest on an old loan, and $1.5 million in taxes to the government. We also know that 4 million coconuts are sold to the public for consumption, and 6 million coconuts are sold to the restaurant firm, which uses them to prepare meals. The restaurant sells $30 million in meals. The restaurant pays $4 million in wages and the government $3 million in taxes. The government supplies security and accounting services and employs only labor, and government workers are paid $5.5 million, collected in taxed by the government. Finally, consumers pay $1 million in taxes to the government in addition to the taxes paid by the two firms.
Required:
a. Compute GDP for this simple economy using the product approach.
b. Compute GDP for this simple economy using the expenditure approach.
c. Compute GDP for this simple economy using the income approach.
d. Now, suppose that the coconut producer cannot sell 1 million coconuts during the course of the year. These are collected coconuts that are not sold to the public (assume that sales to the other firm, the restaurant, remain the same).
e. How does this new piece of information affect your calculations in the expenditure approach? Explain.
A) Product Approach
GDP = Value added of all industries
Value added = revenue - intermediate costs
Value added coconut producer = $20,000,000 (it does not have intermediate costs)
Value added restaurant = $30,000,000 - $12,000,000 (cost of coconuts)
= $18,000,000
Value added government = $5,500,000 (collected in taxes, $3 million from the restaurant, $1.5 million from the coconut producer, and $1 million from consumers).
GDP = $20,000,000 + $18,000,000 + $5,500,000
= $43,000,000
B) Expenditure Approach
GDP = Consumption + Investment + Government Spending + Net Exports
Consumption = $8,000,000 in coconuts + $30,000,000 in meals
= $38,000,000
Investment = $0
Government Spending = $5,500,000 in government wages
Net Exports = $0 (it is a closed-economy)
GDP = $38,000,000 + $0 + $5,500,000 + $0
= $43,500,000
C) Income Approach
Wages = $14,500,000
Corporate Profits = $24,000,000
Interest income = $500,000
Taxes = $4,500,000
GDP = $43,500,000
e. How does this new piece of information affect your calculations in the expenditure approach? Explain.
GDP under the expenditure approach, would rise by the value of the unsold coconuts ($1 million) as long as the coconuts were harvested in the given year. This is because inventory produced in the given year, is part of that year's GDP.
In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.
Answer:
1. Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
2. Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
3. Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
Explanation:
1. Preparation of the Journal entry to Record the correcting entry to expense
Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
(Being To record research and development expense )
Calculation for the Total amount of theresearch and development expense
Basic research to develop the technology $2,000,000
Engineering design work $680,000
Development of a prototype device $300,000
Testing and modification of the prototype $200,000
TOTAL research and development expense $3,180,000
2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment
Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
(Being To correct cost of equipment capitalized to patent)
3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment
Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
(Being To record research and development expens
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, __________ is a financial instrument, __________ is a financial institution, and __________ represents a financial market.
Answer:
Alphabet stock; Acme Investing; New York Stock Exchange.
Explanation:
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.
Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.
Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.
FlanCrest Enterprises is a mid-sized auto supply company that manufactures electronic components for cars. It has approximately 200 employees, with about 150 working on the production line. Its primary customer is Widespread Motors, a large international auto manufacturer. Widespread Motors primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment. The cars may not have as many features, but still operate and cost less than those of their competitors. FlanCrest, under the direction of Widespread, has been asked to reduce the price of its electronic components for the next order due to competitive pressure in the market for Widespread's best-selling car. To cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
Which of the below choices most accurately describes the new HR strategy at FlanCrest Enterprises?
a. Commitment, because they are demonstrating commitment to the development of their workforce
b. Control, because they are attempting to control employees within the workplace
c. Commitment, because they are demonstrating commitment to their key customers
d. Control, because they are attempting to minimize labor costs
Answer:
c. Commitment, because they are demonstrating commitment to their key customers
Explanation:
In the given scenario FlanCrest specialise in selling electronic components for cars. Their main customer is Widespread Motors who are known for primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment.
Based on this mode of doing business by their client FlanCrest have decided to cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
This action was taken as a way to keep its key customer based on their business needs
Yesterday, Casey received a cable company ad for bundled TV, telephone, and Internet service that cost appreciably more than what she is currently paying. At the same time, she received a notice from her utility company that summer rates would be increasing. Her schoolbooks are costing almost twice what they cost last year, and yesterday, gasoline cost her 30 cents more per gallon than it did last week. As she ponders the situation, she can't help but wonder how prices could be rising when so many people have lost their jobs and are cutting back on expenditures. She is certain that this situation characterizes her economics professor's description of stagflation.
a. True
b. False
Answer:
a. True
Explanation:
It is true that her situation characterizes what her economics professor's mentioned on stagflation.
She experienced high internet cost more than she is paying, she was also notified on an increase in the utility summer rates, increase in the cost of her schoolbooks, and gasoline all point to what stagflation is.
Stagflation is detected when a nation experiences slow economic growth obvious with an increase in the cost of goods, which means a reduction in purchasing power as Casey experienced. When companies want to still be running their business, they will increase the cost of their services as there are fewer goods available and the currency weakened.
Assignment 3 Suggested Length: 750 to 1000 words Ethical Theories to Apply: Golden Rule and Virtue Ethics
1. Task You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice. He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you. ***** Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves. What is the ethical issue, why is this an issue, and what should Luke do about it?
***** For assignment 3, prepare a memo, setting out your analysis and recommendations, that considers ONLY the following two theories: Golden Rule and Virtue Ethics.
Answer:
My answer is a little long, so you will probably need to summarize it.
The ethical issue here is that you work for a company that is about to open a store that will make the price of your brother's house to plummet. Your brother has the option to sell his house right now, but if you tell him to accept the offer, you will be breaching your employment duties.
Is your duty towards your brother more or less important than the duty towards the company?
We can analyze both possible outcomes:
You do not tell your brother and he does not sell his house. After the store is announced, your brother's house will decrease in value. That means that your brother will lose a lot of money, but you complied with the obligation of confidentiality that you have with your company. The downside is that once your brother knows about it, he will hate you for the rest of his life. And the hatred will probably not be limited to only your brother, most, if not all of your family will be very unpleased and terribly mad at you. Your family will probably wonder why your parents didn't abort you?, or are you adopted?, or do you simply hate humanity? On the other hand, you decide that you value your brother and whole family, and you decide to tell him to accept the offer. You will have breached your confidentiality obligation towards the company, but you will have literally saved your brother's financial situation, and you will have saved any type of relationship that you have with your family. Will the company be hurt by your decision? No, it will not make any difference to them. They are announcing the decision in just a few days, so anything that you tell your brother will not make any difference. Since your brother will try to sell his house, he will keep the information to himself, since telling other people will only ruin any possible sale.If we follow the golden rule: do to others what you would like them to do to you, then obviously we should tell Owen about our company's plans. If we were Owen, that information would be really important for us.
If we follow virtue ethics, then it gets a little bit more complicated. Is telling Owen about the new store a virtuous action? Would a virtuous person do it? To be honest, I'm not really sure what exactly is a virtuous person.
What I understand is that virtue ethics is based on who you are, and not what you really will do. So, the question here would be: Are you a good (or virtuous) brother? Are you a good (or virtuous) employee? In this case, you cannot be a virtuous employee and a virtuous brother at the same time, so it depends on which you value the most. Going back to the possible outcomes, I would prefer to be a virtuous brother in this case.
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year.
a) What is Marc and Michelle’s gross income?
b) What is Marc and Michelle’s adjusted gross income?
c) What is the total amount of Marc and Michelle’s deductions from AGI?
d) What is Marc and Michelle’s taxable income?
e) What is Marc and Michelle’s taxes payable or refund due for the year? (Use the tax rate schedules.)
f) Complete the first two pages of Marc and Michelle’s Form 1040 (use 2015 forms if 2016 forms are unavailable).
Answer:
A) $76500
B) $72500
C) $24750
D) tax refund of $260
Explanation:
A) calculate Marc and Michelle's gross income
Marc salary = $64000
Michelle's salary = $12000
interest from corporate bond = $ 500
Hence gross income = 64000 + 12000 + 500 = $76500
B) Calculate Marc and Michelle's Adjusted gross income
Gross income = $76500
qualifying moving expenditure = $2500
Alimony paid to previous spouse = $1500
adjusted gross income = 76500 - 2500 - 1500 = $72500
C) Calculate the total amount of Marc and Michelle's deductions from AGI
Standard deduction = $12600
itemized deduction = $6000
personal and dependency allowance = $12150
To calculate the Deductions from AGI we have to add the personal and dependency allowance to the standard deduction ( higher value between standard deduction and itemized deduction )
= 12600 + 12150 = $24750
D ) calculate Marc and Michelle's taxable income
Adjusted gross income = $72500
deduction from itemized deduction = $24750
taxable income = 72500 - 24750 = $47750
E) Determine if Marc and Michelle's taxes payable or refund due for the year
Tax rate schedules :
between $18451 to $79000 : tax rate = $1845 + 15% of income over $18450
Taxable income = $47750
Tax liability = 1845 + (47750 - 18450) * 15% = $6240
child tax credit = $1000
prepayment of taxes = $5500
Tax refund = tax liability - child tax - prepayment of taxes
6240 - 1000 - 5500 = $260
hence there will be a tax return of $260
So you want to finance a car for $4,840. Let’s say we offer you a 4.5% interest rate on a 2-year loan and 6% on a 5-year loan. Enter this info into the calculator to see your monthly and total cost by loan term.
Financing Amount
$4840
Correct
Interest Rate on 2-Year Loan
Interest Rate on 5-Year Loan
Answer:
Interest Rate on 2-Year Loan...$435.6
Interest Rate on 5-Year Loan...$1,452
Explanation:
The formula for calculating simple interest is as follows.
I = P x R x T,
where I = interest
P= Principal
R= interest rate
T= time
For the loan at 4.5 percent for 2 years, the interest will be
= $4,840 x 4.5/100 x 2
= $4,840 x 0.045 x 2
= $435.6
Total cost of the loan will principal plus interest
=$435.6 + $4,840
=$5,275.6
Monthly loan cost
= $5,275.6/24
=$219.81
Total loan cost..$5,275.6
Monthly loan cost ...$219.81
For the Loan at 6 percent for 5 years, the interest will be
= $4,840 x 6/100 x 5
= $4,840 x 0.06 x 5
=$1,452
Total cost of the loan will be principal plus interest
=$ 4,840 + $1,452
=$6,292
Monthly costs will be
=$6,292/60
=$104.87
Total loan cost... $6,292
Monthly loan costs... $104.87
In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects returns in the following year to equal 6% of sales. The adjusting entry or entries to record the expected sales returns is (are):
Answer: Please see answers in explanation column
Explanation:
Accounts title and explanation Debit Credit
Sales returns and allowances $121,200
Sales refund payable $121,200
Calculation
Expected Sales returns and allowances = sales x expected percentage
= 2,020,000 x 6%= $121,200
Accounts title and explanation Debit Credit
Inventory returns estimated $72,600
Cost of goods sold $72,600
Calculation
expected Cost of goods sold = Cost of goods soldx expected percentage
= 1,210,000 x6%=$72,600
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
Which franchise model do automobile dealerships usually follow?
Answer:
hope it helps..
Explanation:
Automakers sold vehicles through department stores, by mail order and through the efforts of traveling sales representatives. The prevailing delivery system was direct-to-consumer sales.
Company Owned Company Operated franchise model do automobile dealerships usually follow. These are companies that have been granted a franchise to purchase and resell cars made by particular manufacturers. They are typically found on sites with enough space to accommodate an automobile showroom as well as a small garage for upkeep and repairs.
What is the difference between a franchise and a dealership?A licensed dealer functions much like a retail distributor. Dealers have more freedom when it comes to the layout of their stores and the products they offer, while franchisees are subject to a set of corporate regulations. The majority of the time, a dealer will sell the same goods and have the parent company's name and logo.
The business model for franchises. You can run a business if you buy a franchise as an investor or franchisee. You receive a format or system created by the business (franchisor), the right to use its name for a predetermined period of time, and assistance in exchange for paying a franchise fee.
Learn more about franchises here:
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Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.
Omitted question-- Prepare the necessary journal entries for Headland computers
Answer: Please see answers below
Explanation:
Journal to record sales revenue
Date Account and explanation Debit Credit
July 1st Account receivables $22,600
Sales Revenue $22,600
Journal to record allowances for sales returns
July 1st Sales returns and allowances $1,334
Allowances for sales return and allowances $1,334
Journal to record receipt of cash from Robertson within discount period
July 10 Cash $21,922
Sales discount $678
Account receivables $22,600
Calculation
Discount = 22,600 x 3%= $678
Cash = $22,600 - $678= $21,922
Journal to record sales revenue
July 1`7 Account receivables $256,100
Sales revenue $256,100
Journal to record receipt of cash from Clark within discount period
July 30 Cash $250,978
Sales discount $5,122
Account receivables $256,100
Calculation
Discount = 256,100 x 2%= $5,122
Cash = $256,100 -$5,122= $250,978
Question 5 of 10
Why do business often add fees to their invoices?
O A. To help pay for business expenses
B. To attract new customers
C. To reward customers' for their loyalty
D. To make more profit than their competitors
Answer: I think it's A
Explanation:
Answer:
Its A!
Explanation:
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