Answer:
The bonds were sold at a premium, with annual interest expenses less than $18,000
Explanation:
r = 4% per annum = 4%*6/12 = 2%
n = 5 years * 2 = 10
Present value of annuity factor = [1 - (1+r)^(-n)] / r
Present value of annuity = [1 - (1.02)^(-10)] / 0.02
Present value of annuity = 8.982585
Interest payment = $300,000*6%*6/12
Interest payment = $9,000
Present value factor = 1/(1+r)^n
Present value factor = 1 / (1.02)^10
Present value factor = 0.8203483
Face value = $300,000
Selling value of bond = [8.982585*9000] + [0.8203483*300,000]
Selling value of = 80,843.265 + 246,104.49
Selling value of = 326,948. (Amount that bond are sold for is greater than 300,000 i.e at a premium).
Coupon rate payment = $300,000*6%
Coupon rate payment = $18,000
During the year, Gary, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. At the end of last year, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?a. Gary recognizes a $1,000 LTCG.b. Gary’s stock basis is $2,000.c. Gary’s ordinary income is $15,000.d. Gary’s tax-free return of capital is $11,000.
Answer: a. Gary recognizes a $1,000 LTCG
Explanation:
Long Term Capital Gain is calculated by the formula:
= Distribution from company - Basis in stock - Ordinary income earned during the year
= 16,000 - 4,000 - 11,000
= $1,000
First statement is therefore correct that Gary would recognize an LTCG of $1,000.
The highest rate of entrepreneurship activity is in the 55-64 age group! Since 1966. older Americans have opened businesses at a higher rate that 20-34 year olds. 1. Can you think of reasons (other than experience and funding) that older entrepreneurs are successful
Answer:
In simple words, Older businessmen have previously experienced a variety of professional and personal conditions. They have more faith in their own abilities and capabilities than a new entrepreneur. Excellent leadership and delegating abilities arise from such conviction, and that is something that youthful entrepreneurs likely to develop only via trial & error.
The minimum that firm needs to do to engage in international business is to: Invest directly in in operations in another country. Export or import products from other countries. Export low-wage manufacturing jobs to companies in other countries. Establish joint ventures or strategic alliances with companies in other countries. Visit a foreign country frequently.
Answer: Export or import products from other countries.
Explanation:
Anything that has to do with the trading in goods and services with an entity from another country constitutes international business.
The minimum that one has to do therefore, to be involved in international business is to simply export to other countries or import from them. This is the cheapest and most widespread method of international business and as a result, represents the bulk of international business.
There is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena called?
Answer:
The productivity paradox
Explanation:
productivity paradox (can be regarded as the peculiar observation which is made in business analyst process when there is more investment as regards information technology.
It should be noted that the productivity paradox is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena
There are three uncertain (random) variables in this problem. Select the variables that should represent uncertainty in this model. Group of answer choices What type of fruit to grow Initial Research and Development Cost Salvage Price Yield Pre-Orders Picked up Pre-Orders Placed
Answer:
Yield
Pre orders placed
Pre orders picked.
Explanation:
Uncertain variables are those which can not be predicted. Output of uncertain variables may vary. A farmer has uncertain variables like yield of the crops, order placed and orders picked. Research and development cost is predictable and analysis make it easy to identify benefit of research.
True or false. The primary functions of price in a free market are to inform, direct, and motivate consumers and firms.
Answer:
True
Explanation:
Prices in a free market co-ordinate the buying and selling decisions in the market. In their rationing role, prices inform the distribution of goods and other resources throughout the economy. Prices motivate firms by acting as incentives that provide a standard of measure of value throughout the world. Prices direct producers and consumers, thereby acting as signals to educate producers and consumers on how to adjust their production and consumption decisions.
A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee. An investor who owns more than ____% of a company's voting stock has control over the investee.
Answer: 50%
Explanation:
The Equity Securities with controlling influence refers to the long-term investment whereby the investor exert controlling influence over the investee. In such case, the investors own 50% or more of the voting stock.
On the other hand, the Equity securities with significant influence refers to the long-term investment whereby the investor exerts significant influence over the investee. In such case, the investors own 20% or more of the voting stocks but should be less than 50%.
_____ feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
Answer:
Operational
Explanation:
Operational feasibility is a strategic process that typically involves measuring how well a proposed solution to a particular problem will work in an organization while also determining how the organization's internal and external customers will react to the proposed solution.
As a general rule, it's very important and necessary that an organization carry out an operational feasibility so as to have a good knowledge and understanding of its proposed actions.
Answer:
Operational
Explanation:
Operational feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The average depreciation rate on your capital stock is 20%. Net investment during the year equaled:________
a. $7 million
b. $4 million
c. $5 million
d. $3 million
Answer:
c. $5million
Explanation:
Net investment = Gross investment - Depreciation
Also, Net investment equals investment at the beginning of the year minus investment at the end of the year
Net investment = $15million - $10million
Net investment = $5million
Therefore, net investment during the year equals $5million
A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases?
a. units of direct material used
b. direct labor hours
c. direct labor cost
d. machine hours
Answer:
D)machine hours
Explanation:
It should be noted that department that is capital-intensive most likely would use a predetermined departmental overhead rate based on
machine hours.
A machine-hour can be regarded as measurement that is been used in applying factory overhead to manufactured goods. It's application is usually found in machine-intensive environments, environment whereby the amount of time that is expelled on processing by a machine is been regarded as largest activity that overhead allocations can be said to have based upon. Machine hour rate can be gotten by making division of the total running expenses of a machine by estimated number of hours for the machine to work at a specific period
A TV manufacturing company uses speakers at the rate of 8000/mo. When it places an order for speakers it incurs a fixed cost of $1200. The monthly interest rate for keeping a speaker in stock is assessed at 1%/mo. The cost of the speaker depends on the order size. If less than 1000 speakers are ordered the cost is $11 each. When the order size is between 1000 and 10,000 the cost is $10.50/unit. For order sizes between 10,000 and 30,000 the cost is $10 per unit. For order quantities between 30,000 and 80,000 the cost drops to $9.50. Beyond 80,000 the cost is $9.25. Determine the optimum order size and time between orders if shortages are not allowed.
Please use excel to solve this problem. Show all cell formulas and parameters used.
Solution :
1. Ordering quantity 500 1000 10000 30000 80000
2. No. of orders 16 8 0.8 0.27 0.1
3. Average inventory 250 500 5000 15000 40000
4. Value of average 2750 5250 50000 142500 370000
inventory
5. Monthly total cost
a). Cost of material 88000 84000 80000 760000 740000
b). Ordering cost 19200 9600 960 320 120
c). Carrying cost 27.5 52.5 500 1425 3700
Total monthly cost 107227.5 93652.5 81460 77745 77820
Among the total monthly cost, $ 77,745 is the least cost.
Therefore, the optimum order size of quantity = 30,000
The number of orders per month = 8000/30000 = 0.267
Time between two consecutive orders = 30000/8000 = 3.75 months
Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50. Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50. Both Melvin and Cindy earn 5 percent annual interest on their funds, and there are no tax considerations in this problem. Based on the provided information :____________
a) and assuming they retire at age 50, Cindy will have less than 50 percent more than Melvin
b) and assuming they retire at age 50. Cindy will have exactly 50 percent more than Melvin.
c) and assuming they both retire at age 60. Cindy will have less than Melvin.
d) the difference between the two will get larger with higher inflation
e) and assuming they retire at age 50. Cindy will have over 50 percent more than Melvin.
Answer: D. and assuming they retire at age 50, Cindy will have over 50% more than Melvin
Explanation:
Since Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50 while Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50 with a 5% annual interest on their funds, then we can deduce that if they retire at age 50, Cindy will have over 50% more than Melvin.
Therefore, the correct option is D.
The adjusted trial balance for Cowboy Company follows: Cowboy Company Adjusted Trial Balance December 31, 2020 ACCOUNT NAMEDEBITCREDIT Cash 156,750 Accounts Receivable 4,500 Prepaid Rent 7,800 Building 145,000 Accumulated Depreciation - Building 65,000 Accounts Payable 5,500 Salaries Payable 1,300 Interest Payable 2,000 Unearned Revenue 24,000 Notes Payable 60,000 Cowboy, Capital 98,000 Cowboy, Withdrawals 22,000 Fees Earned 156,000 Wages Expense 35,000 Rent Expense 20,100 Supplies Expense 7,800 Utilities Expense 3,600 Depreciation Expense 9,000 Interest Expense 250 Totals411,800411,800 Prepare the closing journal entries
Answer:
Cowboy Company
Closing Entries:
Debit Fees Earned 156,000
Credit Income Summary 156,000
To close the revenue account to the income summary.
Debit Income Summary 75,750
Credit:
Wages Expense 35,000
Rent Expense 20,100
Supplies Expense 7,800
Utilities Expense 3,600
Depreciation Expense 9,000
Interest Expense 250
To close the expenses to the income summary.
Debit Net Income 80,250
Credit Cowboy, Capital 80,250
To close the income summary to the Capital account.
Explanation:
a) Data and Calculations:
Cowboy Company
Adjusted Trial Balance
December 31, 2020
ACCOUNT NAME DEBIT CREDIT
Cash 156,750
Accounts Receivable 4,500
Prepaid Rent 7,800
Building 145,000
Accumulated Depreciation - Building 65,000
Accounts Payable 5,500
Salaries Payable 1,300
Interest Payable 2,000
Unearned Revenue 24,000
Notes Payable 60,000
Cowboy, Capital 98,000
Cowboy, Withdrawals 22,000
Fees Earned 156,000
Wages Expense 35,000
Rent Expense 20,100
Supplies Expense 7,800
Utilities Expense 3,600
Depreciation Expense 9,000
Interest Expense 250
Totals 411,800 411,800
Coronado Industries constructed a building at a cost of $30150000. Weighted-average accumulated expenditures were $12500000, actual interest was $1230000, and avoidable interest was $604000. If the salvage value is $2390000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is
Answer:
$709,100
Explanation:
Cost of the building = $30150000
Average accumulated expenditures = $12500000
Actual interest = $1230000
Avoidable interest = $604000
Salvage value = $2390000
Useful life = 40 years
Depreciation expense for the first full year:
= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life
= [($30150000 + $604000) - $2390000] / 40
= [$30754000 - $2390000] / 40
= $28364000 / 40
= $709,100
So, the depreciation expense for the first full year using the straight-line method is $709,100.
When a market is in equilibrium, the: multiple choice 1 quantity demanded equals the price. quantity demanded equals the quantity supplied at the market price. quantity demanded equals the quantity supplied and they both equal the price. quantity supplied equals the price. The market for cell phones reaches equilibrium because cell phone sellers have an incentive: multiple choice 2 to decrease quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to rise and some cell phone consumers will not buy at higher prices, driving the price to equilibrium. to increase quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to fall and some cell phone consumers only buy at higher prices, driving the price to equilibrium.
ANSWER:
2 Batteries
Explanation:
On July 1, 2020 Garcia Corporation issued 5%, 10-year bonds with a face value of $8,000,000 at 96. Interest is paid on Jan 1 and July 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Garcia Corporation would be
Answer:
Garcia Corporation
Bond interest expense reported on the December 31 2020 income statement of Garcia Corporation would be:
= $216,000.
Explanation:
a) Data and Calculations:
Face value of bonds issued = $8,000,000
Issue price at 96 = 7,680,000 (96% * $8,000,000)
Discount on bonds = $320,000
Coupon rate of interest = 5% or 2.5% semi-annually
Maturity period = 10 years
Period of bonds = 20 (10 * 2)
Interest payment = Jan 1 and July 1 (semi-annually)
Amortized semi-annual discounts = $16,000 ($320,000/20)
Interest payment = $200,000 ($8,000,000 * 2.5%)
Interest expense = $216,000 ($200,000 + $16,000)
Analysis on December 31, 2020:
Interest expense $216,000
Interest payable $200,000
Amortized discounts $16,000
Under the temporal method, income statement items that relate to newly recognized assets and liabilities generally are remeasured using the:
Answer: historical exchange rate
Explanation:
The temporal method is also referred to as the historical method. Under this method, the currency of a foreign subsidiary is being converted into the currency of the parent company.
It should be noted that under the temporal method, the income statement items which relate to newly recognized assets and liabilities generally are remeasured using the historical exchange rate.
Kandy Kane Corporation has income before taxes of $400,000 and a loss from discontinued operations pretax of $100,000. If the income tax rate is 25% on all items, the income statement should show income tax expense of
Answer:
The income tax expense = $100000
Explanation:
Below is the given values:
Income before the taxes = $400000
Loss discontinued = $100000
Income tax rate = 25%
In order to calculate the income tax expense, just find the 25% of the income before tax and the resulting answer will be the income tax expense.
The income tax expense = 25% x 400000
The income tax expense = $100000
Situation 1: There is a Head of Human Resource (HR) in a recognized Multinational National Company (MNC). You are a marketing executive in that company. You have made a communication with the HR regarding an emergency short time leave in a Critical moment of the Company’s turnover.
In this case how you will communicate with him and convince him to provide you a short-term leave. The things to be aware of.
1. HR is a rudy person.
2. He isn't very familiar with you.
3. Company is now at a Critical Moment and there is a lot of turnovers.
4. HR is about the age of 45+
And also provide an alternative answer if the situation gets negative over you.
Ans.
Answer:
As a marketing executive of the company looking to beg an emergency leave from a HR person who is considered to be rudy, unfamiliar with me, 45+ age and also that the company is experiencing a lot of turnovers, the best way to approach the HR would be to:
1. Write an official letter to him making the intentions clear.
2. Politely ask him to consider your request even though you two are not very familiar with each other.
3. Stress the importance of the emergency and why you have to leave.
Chris plans on saving $4,000 a year at 4 percent interest for five years. Which one of these is the correct formula for computing the future value at Year 5 of these savings? Assume the payments occur at the end of each year. Click the answer you think is right. FVA $4,000 x [(1.04-1)10.04] FVA $4,000 x [(1.04-1)/0.04 FVA $4.000 x 1.04 FVA, $4,000 x [(1.04 -1/.04] x (1.04)
Answer: Closest answer is: FVA $4,000 x [(1.04-1)/0.04
Explanation:
Because the deposit is constant and occurs every period, it is an annuity.
The formula for the future value of an annuity is:
= Annuity * ( (1 + rate)^number of periods - 1) / rate
Correct formula is therefore:
= 4,000 * ( ( 1 + 4%)⁵ - 1) 4%+
= 4,000 * ( 1.04⁵ - 1 ) / 0.04
Closest answer is: FVA $4,000 x [(1.04-1)/0.04
You want to take out a $125,000 mortgage. The interest rate on the mortgage is 5%, and the loan is for 30 years. How much will your monthly payments be
Answer: $671.03
Explanation:
The monthly payment will be an annuity because it will be constant. The loan amount will be the present value of the loan.
Periodic interest rate of loan = 5%/12 = 5/12%
Loan period = 30 * 12 months = 360 months
Present value of annuity = Annuity * ( 1 - ( 1 + rate) ^ -number of periods) / rate
125,000 = Annuity * ( 1 - ( 1 + 5/12%)⁻³⁶⁰) / 5/12%
125,000 = Annuity * 186.2816170
Annuity = 125,000 / 186.2816170
= $671.03
Answer:
Answer on the picture
Explanation:
A company designs a training program for underperforming employees. They enroll in the program the employees who received the worst 10% of performance evaluations in a given year. They find that very few of the employees who go through the program are in the bottom 10% of performance evaluations the next year. What can they conclude about their new program
Answer:
They can conclude that the program was a success
Explanation:
They can conclude that the program was a success. The main goal of the program is to increase the performance of the employees that were performing the worst in the company. By choosing the bottom 10% of the performance evaluation, they make sure that they are getting the worst of the worst in the company. Therefore, if after the program, the subjects are no longer in the bottom 10% then this means that they have drastically increased their performance and have even passed those that were in a much higher performance ranking than them in the previous year. This means that the program exceeded its goal and can be marked as successful.
Promoting from within should __________ be regarded as an act of discrimination because the information costs of inside versus outside employees are __________.
Answer: sometimes not; higher for the outsider
Explanation:
The options are:
a. always; the same
b. always; higher for the insiders
c. sometimes not; the same
d. sometimes not; higher for the outsiders
Promoting from within should (sometimes not) be regarded as an act of discrimination because the information costs of inside versus outside employees are (higher for the outsider).
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $5,000,000 and a stated interest rate of 8%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. The issue price of the bonds is closest to:
Answer:
"$4,417,800" is the correct solution.
Explanation:
According to the question,
Principal amount,
= $5,000,000
Number of period will be:
= [tex]8\times 2[/tex]
= [tex]16[/tex]
Interest rate yield per period will be:
= [tex]\frac{8 \ percent}{2}[/tex]
= [tex]4[/tex] %
Interest rate started per period will be:
= [tex]\frac{6 \ percent}{2}[/tex]
= [tex]3[/tex] %
Now,
The present value of principal will be:
= [tex]Principal\ amount\times Yield \ discount \ factor[/tex]
= [tex]5,000,000\times 0.534[/tex]
= [tex]2,670,000[/tex] ($)
The present value of interest will be:
= [tex]Interest \ amount\times Yield \ discount \ factor[/tex]
= [tex](5,000,000\times 3 \ percent)\times 11.652[/tex]
= [tex]1,747,800[/tex] ($)
hence,
The issue price of bonds will be:
= [tex]2,670,000+1,747,800[/tex]
= [tex]4,417,800[/tex] ($)
True or False: With a minimum wage of $8.70, unemployment of unskilled workers is lower with the tax credit versus without it.
Answer: True
Explanation:
Generally speaking, a tax credit would bring about a lower unemployment rate for unskilled labor as opposed to a situation where there is no tax credit.
A tax credit would reduce the amount of taxes that a company is to pay which would leave them with more income to reinvest into the business. This reinvestment will lead to the business having a higher production capacity such that it requires more workers so they will hire more workers, both unskilled and skilled thereby reducing the unemployment rate for both.
You would like to use the periodic review model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 20. Which of the following is the standard deviation of demand over the review period and lead time (sT L) if the standard deviation of daily demand is 8?
a. 40
b. 200
c. 8
d. 25
e. 100
Answer:
a. 40
Explanation:
The computation of the standard deviation of the demand is shown below:
= 8 × √(5+20)
= 8 × √25
= 8 × 5
= 40
Hence, the standard deviation of the demand is 40
Therefore the first option is correct and the same is to be considered
Rizio Co. purchases a machine for $9,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $192 discount. Transportation costs of $217 were paid by Rizio. The machine required mounting and power connections costing $664. Another $313 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $245 worth of repairs were made.
Required:
Compute the cost recorded for this machine.
Answer:
$10,642
Explanation:
Computation to determine the cost recorded for this machine.
Amount included in the cost of equipment
Invoice price of machine $9,600
Less: Discount (9600 x 2%) ($192)
Net purchase price $9,408
($9,600-$192)
Freight charges $217
Mounting and power connections $664
Assembly $313
Materials used in adjusting $40
Total cost to be recorded $10,642
Therefore the cost recorded for this machine is $10,642
Supriya invested $14,320 in a highly rated ETF. At the end of four years, she had $18,434. What was her annual effective yield on this investment
Answer:
6.517%
Explanation:
Present Value PV = $14,320
Future Value FV = $18,434
Number of period Nper = 4
Annual effective yield = Rate(Nper, Pmt, Pv, -Fv)
Annual effective yield = Rate(4, 0, 14320, -18434)
Annual effective yield = 0.06517
Annual effective yield = 6.517%
Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
Journal entry worksheet 1 Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash. Note: Enter debits before credits General Journal Debit Credit Date Dec. 1 Record entry Clear entry View general journal
Answer:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
Explanation:
Based on the information given assuming On December 1, the company purchased $3,300 of merchandise for cash which means that the appropriate journal entry to record these Transaction will be:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
Do you think the licensing process for international medical graduates is an unnecessary hurdle meant to shield U.S. doctors from foreign competition?
Answer:
No licensing is right. Doctors in U.S. are spending more on medical studies than any other country. It is necessary for other country medical students to gain license in order to do practice in the country.
Explanation:
In U.S. doctors are in deficiency so the country cannot completely cease employment for foreign doctors. The country needs to welcome foreign doctors but it is also necessary to safeguard home doctors. If U.S. will not safeguard rights of home country doctors then they will be demotivated and will not be patriotic for the country.