Answer:
$544,120
Explanation:
Calculation for what The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been
First step is to calculate the Applied manufacturing overhead
Applied manufacturing overhead = $538,980 - $24,140
Applied manufacturing overhead = $514,840
Second step is to calculate the Predetermined overhead rate using this formula
Predetermined overhead rate = Applied manufacturing overhead / Actual direct labor hours
Let plug in the formula
Predetermined overhead rate = $514,840 / 21,100
Predetermined overhead rate = $24.4
Now let calculate the Estimated total manufacturing overheads using this formula
Estimated total manufacturing overheads = Estimated direct labor hours * Predetermined overhead rate
Let plug in the formula
Estimated total manufacturing overheads= 22,300 *$24.4
Estimated total manufacturing overheads= $544,120
Therefore The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been $544,120
ackson Inc. listed the following data for 2019: Budgeted factory overhead $1,530,000 Budgeted direct labor hours 90,000 Budgeted machine hours 42,500 Actual factory overhead 1,250,000 Actual direct labor hours 87,800 Actual machine hours 40,900 Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 (round calculations to 2 significant digits) is:
Answer: $36 per machine hour
Explanation:
Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 would be calculated by dividing the budgeted factory overhead by the budgeted machine hours. This will be:
= $1,530,000 / 42,500
= $36 per machine hour
Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years. Using the double-declining balance method, depreciation expense for 2021 would be:
Answer:
Annual depreciation= $11,000
Explanation:
Giving the following information:
Purchase price= $60,000
Salvage value= $5,000
Useful life= 5 years
To calculate the depreciation expense under the double-declining balance method, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= (60,000 - 5,000) / 5
Annual depreciation= $11,000
The depreciation expense using the double-declining balance method for 2021 starts from $24,000 and finally in the fifth year the residual value will be left that is $4,666.
What is double-declining method of depreciation?When opposed to straight-line depreciation, which employs the same amount of depreciation each year, the double-declining balance depreciation method technique is an expedited depreciation approach that counts as an expense more quickly.
The formula for depreciation using double-declining depreciation:
[tex]\rm\,Periodic\,Depreciation\,expense= Beginning\,book\,value\times\,Rate\,of \,depreciation.[/tex]
[tex]\rm\,Rate\,of\,depreciation= \\\\\ Expense = \(\dfrac{100\%}{Useful\,life\,of\,the\,asset}\times\,2\\\\Expense = \dfrac{100\%}{5}\times\,2\\\\= 40\%[/tex]
The calculation of the depreciation amount for the given case has been attached in the image below.
Hence, Kansas enterprise will have the following depreciation amounts using the double-declining-balance method for the period of 5 years: $24,000,$14,400, $8,640, $5,184, and $3,110 respectively.
To learn more about double-declining-balance method, refer to the link:
https://brainly.com/question/24296752
Make-or-Buy Decision
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:
Direct materials $16
Direct labor 20
Factory overhead (25% of direct labor) 5
Total cost per unit $41
If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs.
a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0". If required, round your answers to two decimal places. Use a minus sign to indicate a loss.
Differential Analysis
Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2)
September 30
Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effect on Income (Alternative 2)
Sales price $ $ $
Unit costs:
Purchase price
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Income (loss) $ $ $
b. Assuming there were no better alternative uses for the spare capacity, it would (Be advisable, Not be advisable) to manufacture the carrying cases. Fixed factory overhead is(Relevant, Irrelevant) to this decision.
Answer:
A. Make carrying case(Alternative 1) $41.00
Buy carrying case (Alternative 2)$44.00
Differential effect on net income (Alternative 2)($3.00)
B. Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
Explanation:
A. Preparation of a Differential Analysis
DIFFERENTIAL ANALYSIS
Make carrying case Buy carrying case
(Alternative 1) (Alternative 2)
Alternative 1 Alternative 2 Differential effect on net income (Alternative 2)
Sales price
$0.00 $0.00 $0.00
Purchase Price
$0.00 $40.00 ($40.00)
Direct materials
$16.00 $0.00 $16.00
Direct labor
$20.00 $0.00 $20.00
Variable manufacture overhead (20*5%=$1.00)
$1.00 $0.00 $1.00
Fixed manufacture overhead($5.00-$1.00) $4.00 $4.00 $0.00
Income(Loss)
$41.00 $44.00 ($3.00)
Based on the above calculation Alternative 1 which is carrying case should be Choose by the Company .
B. Therefore Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash5,684 Sales discounts116 Accounts receivable 5,800 Cash5,684 Accounts receivable 5,684 Cash4,000 Accounts receivable 4,000 Cash5,800 Accounts receivable 5,800 Cash3,920 Sales discounts80 Accounts receivable 4,000
Answer:
Date Account Details Debit Credit
Feb 8 Cash $5,684
Sales Discount $ 116
Accounts Receivable $5,800
Explanation:
Credit terms of 2/10, n/30 mean that there is a 2% sales discount if the debt if the credit sale is settled in 10 days. If not, the person will have to pay in 30 days.
Truman paid within 10 days so qualifies for the discount which is:
= 5,800 * 2%
= $116
The amount paid will be:
= 5,800 - 116
= $5,684
Andriana Rodriguez is applying for a loan. As she is filling out the paperwork, she comes across a question about her age, which Andriana does not fill in.
Which consumer protection law best supports Andriana's decision to leave this field blank?
- the Equal Credit Opportunity Act (ECOA)
- the Home Mortgage Disclosure Act (HMDA)
- the Truth in Lending Act (TILA)
- the Truth in Savings Act (TISA)
Answer:
ECOA
Explanation:
ECOA Prohibits discrimination based on age (provided they have the capacity to contract)
Mark can produce 60 baseballs in a month and Katie can produce 42 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats.
Answer:
The answer is "Mark and Katie".
Explanation:
Through one month, Marked could manufacture 60 baseballs, but also Katie could manufacturing process 42 baseballs a couple of weeks, and inside the same month Katie may generate 40 bats in the same month 30 bats. In bats, Mark now has comparative advantages and Katie will have the peak value in bats production.
Lanson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts payable $ 25,000 Bonds payable, due 2030 22,000 Salaries payable 16,000 Notes payable, due 2022 20,000 Notes payable, due 2026 40,000 What amount should be included in the current liabilities section of Lanson’s December 31, 2021, balance sheet?
Answer:
$61,000
Explanation:
Calculation for What amount should be included in the current liabilities section of Lanson’s December 31, 2021, balance sheet
Accounts payable $ 25,000
Add Salaries payable $16,000
Add Notes payable, due 2022 $20,000
December 31, 2021 Current liabilities section $61,000
($25,000+$16,000+$20,000)
Therefore the amount that should be included in the current liabilities section of Lanson’s December 31, 2021, balance sheet will be $61,000
25 points !Please answer thank you !!!!
Answer: The 3rd one
Explanation: (i think) because it talks about shoes and a graph usually shows the growth in a company or product
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $2,200.
b. Cash provided from consulting to customers, $48,600.
c. Cash used for purchase of mining equipment, $79,000.
d. Cash provided from long-term borrowing, $66,000.
e. Cash used for payment of employee salaries, $24,600.
f. Cash used for payment of office rent, $12,600.
g. Cash provided from sale of equipment purchased in c. above, $23,100.
h. Cash used to repay a portion of the long-term borrowing in d. above, $43,000.
i. Cash used to pay office utilities, $4,900.
j. Purchase of company vehicle, paying $10,600 cash.
Required:
Calculate cash flows from financing activities. (List cash outflows as negative amounts.)
Answer:
$12,400
Explanation:
Cash flows from financing activities Amount
Cash provided from long-term borrowing $66,000.
Cash used to repay a portion of the -$43,000
long-term borrowing in d. above
Purchase of company vehicle, paying -$10,600
Net cash used in financing activities $12,400
The amount of money withheld from an employee's paycheck is...
A.Payroll deductions
B.Levied taxes
C.FICA
D.Gross earnings
Answer:
A.Payroll deductions
Explanation:
Withholding is the action by employers to retain a portion of an employee's salary for a specific function. Money withheld does not get to the employee bank's account. The amount withheld is shown in the pay stub, but the employee will not access it.
Employers collect the amounts withheld and remit them to the concerned agency. Deductions are usually a percentage of the employee's gross pay.
A firm has beginning retained earnings of $6,880 and ending retained earnings of $7,430. What is the amount of dividends paid if the firm earned a net income of $5,130
Answer:
the dividend paid is $4,580
Explanation:
The computation of the amount of the dividend paid is as follows:
As we know that
Ending retained earning balance = Beginning retained earning balance + net income - dividend paid
$7,430 = $6,880 + $5,130 - dividend paid
So, the dividend paid is $4,580
Universal Foods issued 10% bonds, dated January 1, with a face amount of $110 million on January 1, 2021. The bonds mature on December 31, 2040 (20 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Determine the price of the bonds at January 1, 2021.2. to 4. Prepare the journal entries to record t
Answer:
market price:
PV of face value = $110 / (1 + 6%)⁴⁰ = $10.694 million
PC of coupon payments = $5.5 x 15.046 (PV annuity factor, 6%, 40 periods) = $82.753 million
market value = $93.447 million
January 1, 2021
Dr Cash 93.447 million
Dr Discount on bonds payable 16.553 million
Cr Bonds payable 110 million
the question is incomplete
amortization of bond discount:
first coupon payment = (93.447 x 6%) - 5.5 = $106,820
second coupon payment = (93,340,180 x 6%) - 5,500,000 = $100,411
June 30, 2021
Dr Interest expense 5,606,820
Cr Cash 5,500,000
Cr Discount on bonds payable 106,820
December 31, 2021
Dr Interest expense 5,600,411
Cr Cash 5,500,000
Cr Discount on bonds payable 100,411
My cousin borrowed $18000 for new car loan for 6 years he told me that at the end of the loan he pained $25560 for interest and principal what was the rate of the loan
A 7% b 8% c 9% d 9%
Make you the brainlist if you answer
Answer:
7%
Explanation:
R = (1/T)(A/P-1)
R = (1-6)((25560/18000)-1)
R = .07
R = 7%
Sensors in parking lots are able to detect and communicate when spaces are filled in a large covered parking garage next to an urban shopping mall. How might the owners of the parking garage use this information both to attract customers and to help the store owners in the mall make business plans? Choose the correct answer below. A. The owners of the parking garage can raise parking prices based on the demand for that time of the day. They can also communicate with businesses as to when to expect less customers so that they can adjust their store hours appropriately. B. The owners of the parking garage can alert the shopping mall customers if their car has been moved and/or stolen. C. The owners of the parking garage can advertise about the availability of parking. They can also communicate with businesses about hours when more spots are available and when they should encourage more business. D. The owners of the parking garage can invest in a larger garage based on the busiest time of the day. The increased capacity with lead to increased sales for the store owners in the mall.
Answer: C. The owners of the parking garage can advertise about the availability of parking. They can also communicate with businesses about hours when more spots are available and when they should encourage more business
Explanation:
Since we are informed that the sensors in the parking lots are able to detect and communicate when spaces are filled in a large covered parking garage next to an urban shopping mall, this can be beneficial to the owners of the parking garage as they can advertise the availability of parking.
The owners can also speak to the business about the hours when there are available spots.
Use a piece of scrap paper to prepare a cost of Goods Manufactured from the following numbers: Beginning Direct Raw Materials -$69,000 Direct Raw Materials Purchases-$92,000. Direct Raw Materials Ending Inventory- $8000 Direct Labor-$25,000. Factory Overhead $37,000. Beginning work in process inventory $22,000. Ending Work in process Inventory $23,500 What are the total manufacturing costs for this statement
Answer:
the total manufacturing cost is $215,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Direct material used + direct labor cost + manufacturing overhead cost
= $69,000 + $92,000 - $8,000 + $25,000 + $37,000
= $215,000
Hence, the total manufacturing cost is $215,000
We simply applied the above formula
If you owned a business what would be the way to protect your personal assets from liablity?
Answer:
When you form an LLC, you establish a new business entity that's legally separate from its owners. This separation provides what is called limited liability protection. As a general rule, if the LLC can't pay its debts, the LLC's creditors can go after the LLC's bank account and other assets.Sep 4, 2020
When you listen with an intent to understand, you ________
a.
listen for your chance to get your point across
b.
are gaining factual information that you can later report to a manager
c.
seek to understand the other person, you don't interrupt, and you don’t make assumptions.
d.
are looking for a way to reframe the conversation
Answer:
C, it makes the most sense out of the other ones
The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the:_________A) supply curve for imported champagne is vertical.B) demand curve for imported champagne is horizontal.C) demand curve is downward sloping and the supply curve is upward sloping.D) demand curve for imported champagne is vertical.
Answer: D) demand curve for imported champagne is vertical
Explanation:
If the government proposes a tax on the imported champagne, it should be noted that the buyers will bear the entire tax burden when the demand curve for the imported champagne is vertical.
This implies that the quantity of imported champagne that is demanded
will remains the same, even though there's an increase of price.
While preparing the concept screening matrix, the development team chooses: Group of answer choices a benchmark or reference concept which is either an industry standard, or a straightforward concept which is very familiar to the team members a benchmark or reference concept which is neither an industry standard, nor familiar to the team members several concepts which team members are not familiar with. none of the above
Answer:
a) a benchmark or reference concept which is either an industry standard, or a straightforward concept which is very familiar to the team members
Explanation:
Screening matrix can be regarded as
a tool that gives the summary that contains the candidates and qualifications. It provide an objective way to make comparison of the candidates and the set standard or the comparison of the candidates with each other. It should be noted that While preparing the concept screening matrix, the development team chooses a benchmark or reference concept which is either an industry standard, or astraightforward concept which is very familiar to the team members
Covent Gardens Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating costs to be $265,000, assets to be $200,000, and its tax rate to be 35%. Under Plan A it would use 25% debt and 75% common equity. The interest rate on the debt would be 8.8%, but under a contract with existing bondholders the Times Interest Earned (TIE) ratio would have to be maintained at or above 4.5. Under Plan B, the maximum debt that met the TIE constraint would be employed. Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure?
Answer:
Assets = $200,000
For Plan A
25% debt = 200,000 * 25% = 50,000
75% equity = 200,000 * 75% = 150,000
The debt will generate 8.8% interest expense. Interest expense = 50,000 * 8.8% = 4,400
Income for the expected project under Plan A
Sales revenue 300,00
Operating cost 265,000
EBIT 35,000
Interest expense 4,400
EBT 30,600
Income tax 10,710
Net income $19,890
Times interest earned = EBIT /interest expense = 35,000 / 4,400 = 7.95. So, it achieve the requirement of 4.5 or above.
ROE for plan A = Net income / Equity = 19,890/150,000 = 0,1326 = 13.26%
Under Plan B
We will take as much debt as we can until Times interest earned = 4.5
EBIT / interest expense = Times interest earned
35,000/Interest expense = 4.5
Interest expense = 35,000/4.5
Interest expense = 7.777,78
Net income = (EBIT - interest) x (1- tax-rate)
Net income = (35,000 - 7,777.78) x (1-35%)
Net income = 17.694,443
Interest expense = Debt * Rate
Debt = Interest expense / Rate
Debt = 7,777.78/0.088
Debt = 88.383,86
Asset = Debt + Equity
200,000 = 88,383.86 + Equity
Equity = 200,000 - 88,383.86 =
Equity = 111,616.14
ROE for Plan B = Net income/ Equity = 17,694.443 / 111,616.14 = 0,15852943 = 15.85%
So, we compare both ROE
Plan A = 13.26%
Plan B = 15.85%
Difference = 2.59%
So therefore, using the Plan B will increase the ROE for 2.59%
An investor has up to $250,000 to invest in three types of in-vestments. Type A pays 8% annually and has a risk factor of0. Type B pays 10% annually and has a risk factor of 0.06.Type C pays 14% annually and has a risk factor of 0.10. Tohave a well-balanced portfolio, the investor imposes the fol-lowing conditions. The average risk factor should be nogreater than 0.05. Moreover, at least one-fourth of the totalportfolio is to be allocated to Type A investments and at leastone-fourth of the portfolio is to be allocated to Type B invest-ments. How much should be allocated to each type of invest-ment to obtain a maximum return?
Answer:
Answer is explained below in the explanation section.
Explanation:
Solution:
An investor has up to $250,000 to invest in three types of investment.
Type A pays 8% annually and has risk factor of 0.
Type B pays 10% annually and has risk factor of 0.06.
Type C pays 14% annually and has risk factor of 0.10.
So,
Decision Variables are:
[tex]X_{1}[/tex] = Total Amount invested in Type A.
[tex]X_{2}[/tex] = Total Amount invested in Type B.
[tex]X_{3}[/tex] = Total Amount invested in Type C.
So, the Objective Function will be:
Objective function:
Max Z = 0.08[tex]X_{1}[/tex] + 0.10[tex]X_{2}[/tex] + 0.14[tex]X_{3}[/tex]
And the Constraints will be:
1. Total Amount Variable:
[tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] [tex]\leq[/tex] 250000
2. Total Risk is no greater than 0.05:
0[tex]X_{1}[/tex] + 0.06[tex]X_{2}[/tex] + 0.10[tex]X_{3}[/tex] [tex]\leq[/tex] 0.05
3. At least one fourth of the total amount invested to be allocated to Type A investment.
[tex]X_{1}[/tex] [tex]\geq[/tex] 0.25 ( [tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] )
0.75[tex]X_{1}[/tex] - 0.25[tex]X_{2}[/tex] - 0.25[tex]X_{3}[/tex] [tex]\geq[/tex] 0
4. At least one fourth of the total amount to be allocated to Type B investment.
[tex]X_{2}[/tex] [tex]\geq[/tex] 0.25 ( [tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] )
-0.25[tex]X_{1}[/tex] + 0.75[tex]X_{2}[/tex] - 0.25[tex]X_{3}[/tex] [tex]\geq[/tex] 0
5. And the non- negativity constraints are:
[tex]X_{1}[/tex],[tex]X_{2}[/tex], and [tex]X_{3}[/tex] [tex]\geq[/tex] 0
A company's inventory records indicate the following data for the month of January: Jan. 1 Beginning 180 units at $9 each Jan. 5 Purchased 170 units at $10 each Jan. 9 Sold 300 units at $35 each Jan. 14 Purchased 200 units at $11 each Jan. 20 Sold 150 units at $35 each Jan. 30 Purchased 230 units at $12 each What is the amount of cost of goods sold for January, if the company uses the LIFO, FIFO and weighted average perpetual inventory system?
Answer:
The amount of cost of goods sold for January:
LIFO FIFO Weighted Average
Cost of goods sold $4,520 $4,420 $4,452
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost/Price Total Cost Total Revenue
Jan. 1 Beginning 180 units at $9 each $1,620
Jan. 5 Purchased 170 units at $10 each 1,700
Jan. 9 Sold (300) units at $35 each $10,500
Jan. 14 Purchased 200 units at $11 each 2,200
Jan. 20 Sold (150) units at $35 each 5,250
Jan. 30 Purchased 230 units at $12 each 2,760
Total 780 / 450 $8,280 $15,750
b) Cost of goods sold:
LIFO:
Jan. 9 Sold (300) 170 units at $10 = $1,700
130 units at $9 = 1,170
Jan. 20 Sold (150) 150 units at $11 = 1,650
Cost of goods sold = $4,520
c) FIFO:
Jan. 9 Sold (300) 180 units at $9 = $1,620
120 units at $10 = 1,200
Jan. 20 Sold (150) 50 units at $10 = 500
100 units at $11 = 1,100
Cost of goods sold = $4,420
d) Weighted-Average:
Jan. 9 Sold (300) 300 units at $9.49 = $2,847
Jan. 20 Sold (150) 150 units at $10.70 = 1,605
Cost of goods sold = $4,452
Weighted Average Cost at each point of sale:
$9.49 = ($1,620 + $1,700)/350 units
$10.70 = (($9.49*50) + $2,200)/250 units
e) LIFO = Last In, First Out is based on the assumption that the items sold are from the last inventory purchased instead of the first.
FIFO = First In, First Out is based on the assumption that the items sold are from the first inventory instead of the last.
Weighted-Average: This method averages the cost of inventory to determine the unit cost.
Under the perpetual inventory system, the inventory costs are recorded immediately after an inventory transaction and not at the end of a period.
Your manager is concerned that costs are being misappropriated due to large balances in ending work in process inventories while currently using the FIFO Method for accounting for beginning work in process inventories. Using examples from your own experience or from the book, explain to the manager which of the methods of process costing you believe should be used and why.
Answer:
The company should use the weighted average method of process costing.
Explanation:
FIFO and Weighted average cost method are the two methods of Process costing. The company is already using the FIFO method for accounting of inventory under which cost are misappropriated into closing WIP.
To solve such issue, the company can use the weighted average method under which cost is calculated by weighted average and then evenly distributed to the unit transferred to other department and the ending work in process.
Example: Suppose company purchased goods lying stock 20000 units at $5 each. Weighted average cost calculated per unit is $3 per unit. Calculate Closing work in process
==> FIFO = 20000*5 = $100,000
==> Weighted average cost = 20000 * 3 = $60,000
Van is sick and tired of his job. His doctor certifies that his health may be compromised if he continues to work at his current job. He sells his life insurance policy to Life Settlements, Inc. for $50,000 so he can take a break from work. He has paid $10,000 so far for the policy. How much of the $50,000 must Van include in his taxable income
Answer:
$40,000
Explanation:
Based on the information given How much of the amount of $50,000 that Van must include in his taxable income will be $40,000 ($50,000-$10,000). The reason why he must pay tax on the amount of $40,000 gain ($50,000-$10,000) on the sale of the policy is that all the necessary requirements for the death benefit has not been meant by Van.
Therefore Van must include in his taxable income the amount of $40,000.
An investment offers $6,260 per year for 17 years, with the first payment occurring 11 years from now. If the required return is 3 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the present value of the annuity 1 period before the annuity starts. So if the annuity starts in year 7, that calculator will to give you the persent value of annuity in year 6. Now you have to bring this number to period 0 by inputting: N=6 (1 period before the annuity starts, in your case it would be a different number depending when your annuity starts) R=3 FV=Present value of annuity you found in step 1. And you solve for PV)
Answer: $61,328.15
Explanation:
The amount paid is per year so this is an annuity. It will begin 11 years from now so one should find the present value in that year:
Present Value of annuity = Annuity * ( 1 - ( 1 + rate) ^ - no. of periods) / rate
= 6,260 * ( 1 - ( 1 + 3%) ⁻¹⁷) / 3%
= $82,419.90
That is the present value if the annuity starts 11 years from now which means that it is the present value 10 years from now (ordinary annuities are paid end of period).
You need to discount to current period:
= 82,419.90 / ( 1 + 3%)¹⁰
= $61,328.15
A dam is being built that will cost $500,000. The dam will cost $20,000 per year to operate and will require a maintenance expense of $30,000 every other year beginning two years from now. The dam is expected to last 30 years. If interest is 12%, calculate the capitalized cost. This is the present equivalent assuming the dam will need to last forever.
Answer:
multiplicado todas la cantidades y ese es el resultado
On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 $ 2,310,000 January 1 through February 28, 2022 910,000 March 1 through April 30, 2022 510,000 Athens expects a useful life of five years for the software and total revenues of $7,000,000 during that time. During 2022, revenue of $1,050,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022.
Answer and Explanation:
The journal entries are shown below:
For 2021
Research and development expense $2,310,000
To Cash $2,310,000
(Being expenses incurred on R&D is recorded)
Here expenses are debited as it increased the expense and credited the cash as it decreased the assets
For 2022
Research and development expense $910,000
Software development expense $510,000
To Cash $1,420,000
(Being expenses incurred is recorded)
Here expenses are debited as it increased the expense and credited the cash as it decreased the assets
Compute gross profit for the month of January for Laker Company for the four inventory methods. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit?
Answer:
1. Net Income Specific Identification $255
LIFO $258
FIFO $246
Weighted Average $251
2. LIFO
3. Yes
4. FIFO
Explanation:
Particulars : Specific identification, Weighted Avg, FIFO, LIFO
Sales: $ 2700 , 2700, 2700, 2700
Cost of Goods Sold $ 1025, 1032, 1040, 1020
Gross Profit $ 1675, 1668, 1660, 1680
Expenses $1250 , 1250, 1250, 1250
Income before taxes $425, 418, 410, 430
Income Tax $170, 167, 164, 172
Net Income $255, 251, 246, 258
The Retained earnings account has a credit balance of $39,000 before closing entries are made. Total revenues for the period are $57,200, total expenses are $40,800, and dividends are $9800. What is the correct closing entry for the expense accounts?
Answer:
Debit income summary $40,800
Credit expense accounts $40,800
Explanation:
The correct closing entry for expense account would be to debit the income summary for $40,800 and then credit the expense accounts for $40,800.
Here, other items such as revenue, retained earnings and dividends would all be ignored because we were specifically asked to get the correct closing entry for expense account, hence; only expense value would be considered.
John is filing taxes individually, his salary is $102,000, he also received $5,000 on interest from its bank accounts, $750 on dividends from Abbot stocks, he received $10,000 from selling stocks from Tesla that were purchased 8 month ago for $7,500, and he received $16,000 on dividends and finally he sold stocks from Amazon for $17,000 and he bought them 2 years ago for $8,000. Standard deduction $12,000
Calculate
a. Taxable income coming from short term
b. Taxable income coming from long term & dividends
c. Total Federal Tax owned
d. Marginal Tax rate
e. Average Tax rate
Tax rate Taxable income Tax owed
10% $0 to $9,525 10%
12% $9,526 to $38,700 $95250 plus 12% over the amount over 9525
22% $38,701 to$82,500 $4453.30 plus 22% of the amount over 38701
24% $82,501 to $157,500 $14089.50 plus 24% of the amount over $82500
32% $157,501 to $200,000 $32089.5 plus 32% of the amount over $157500
35% $200,001 to $500,000 $45689.5 plus 35% of the amount over $200000
37% $500,001 or more $150689.50 plus 37% of the amount over$500000
Answer:
a. Taxable income coming from short term
= $102,000 + $5,000 + ($10,000 - $7,500) = $109,500
b. Taxable income coming from long term & dividends
= $750 + $16,000 + ($17,000 - $8,000) = $25,750
dividends are taxed as ordinary income, only long term capital gains are taxed at 15%
c. Total Federal Tax owned
ordinary income = $126,250 - $12,000 = $114,250
long term capital gains = $9,000
ordinary tax liability = $14,089.50 + [24% x ($114,250 - $82,500)] = $21,709.50
long term capital gains = $9,000 x 15% = $1,350
total tax liability = $23,059.50
d. Marginal Tax rate
24%
e. Average Tax rate
$21,709.50 / $114,250 = 19%
