Match each variable with the best representation of where it appears in the financial accounting statements. Each is only matched once and some responses might not have a match. - Accounts payable - Change in Accounts Receivable - Change in Notes Payable - Property Plant and Equipment - Revenue - Change in long term debt A. Long Term Liabilities on the Balance Sheet B. The Income Statement C. Current Liabilities on the Balance Sheet D. Financing Segment Statement of Cash flows E. Financing Segment on the Statement of Cash Flows F. Fixed Assets on the Balance Sheet G. Operating Segment on the Statement of Cash Flow

Answers

Answer 1

Answer:

Variable                                           Financial accounting statements.

Accounts payable                           Current liabilities in the balance sheet.

Change in accounts receivable     Operating segment on the statement of

                                                        Cash flows.

Change in note payable                 Financing segment on the statement of

                                                         cash flows.

Property, Plant and Equipment      Fixed assets on the balance sheet.

Revenue                                          The income statement.

Change in long term debt              Investing segment on the statement of

                                                         cash flows.


Related Questions

Hillside issues $1,600,000 of 9%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,382,579.

Required:
a. Prepare the January 1, 2017, journal entry to record the bonds' issuance.
b. Prepare the journal entries to record the first two interest payments.

Answers

Answer: Check attachment

Explanation:

a. Prepare the January 1, 2017, journal entry to record the bonds' issuance.

This has been attached. Kindly note that the discount on bond payable was calculated as:

= Bond payable - Cash

= 1,600,000 - 1,382,579

= 217,421

b. Prepare the journal entries to record the first two interest payments.

Check attachment as the first two interest payments on June 30th 2017 and December 31st, 2017 has been attached.

Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the questions. Round answers to two places after the decimal where applicable. Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 4.60 . Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67 %.

Abe must have_________ prices. Therefore, Abe's total revenue ____________ Abe's prices must have changed by:________%
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%.
If Webs-R-Us has a price elasticity of demand at 0.70, we can expected the number of websites designed to ___________

Answers

Answer:

increased

fell

14.57%

decrease

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Honest Abe's Used Cars has an elastic demand because its coefficient of elasticity is greater than one. Because demand is elastic, a rise in price would lead to a decrease in the number of cars sold. If price is increased, demand would fall more than the change in price, so total revenue would fall.

4.6 = 0.67 / percentage change in price

Percentage change in price = 0.67 / 4.6 = 0.1457 = 14.57%

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Webs-R-Us services has an inelastic demand.

If prices are increased, demand would fall but it would fall less than the increase in price

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

A company sells 500 shirts at a price of $15 each with a cost of goods sold of $2 per shirt. The company has selling and administrative expenses of $2,500, depreciation expenses of $500, interest expenses of $1,000, and a tax rate of 35%. Calculate the operating (EBIT)

Answers

Answer:

EBIT= $3,500

Explanation:

EBIT is the earnings before interest and taxes.

First, we need to calculate the sales revenue and cost of goods sold:

Sales= 500*15= $7,500

COGS= 500*2= $1,000

Now, we can determine the EBIT:

Sales= 7,500

COGS= (1,000)

Gross profit= 6,500

Selling and administrative expense= (2,500)

Depreciation expense= (500)

EBIT= $3,500

If we want to determine the net income:

EBIT= 3,500

Interest= (1,000)

EBT= 2,500

Tax= 2,500*0.35= (875)

Depreciation= 500

Net income= 2,125

It's best if you share the details of a personal appointment when you need to request time off work. True Or False ​

Answers

Answer:

False

Explanation:

One major advantage of limited liability is that it:________.
a. is not subject to a free-rider problem.
b. has unlimited profit sharing among the firm's owners.
c. shields the personal assets of owners from liability claims.
d. is not subject to a principal-agent problem.

Answers

Answer: c. shields the personal assets of owners from liability claims.

Explanation:

An advantage of limited liability is that it shields the personal assets of owners from liability claims.

For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.

Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule for tax purposes (standard linear depreciation in the books): year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent. Tax rate is 35%. Calculate the annual depreciation schedule and depreciation tax-shield.

Answers

Solution :

Depreciation rates   16.67%      16.67%    16.67%     16.67%      16.67%      16.67%

(books)

Depreciation        $100000  $100000 $100000  $100000  $100000  $100000

(books)

Depreciation        $35000    $35000    $35000   $35000   $35000  $35000

tax shield (books)

Depreciation rate   20%            32%         19.20%      11.50%      11.50%     5.80%

(tax)

Depreciation       $120000  $192000   $115200  $69000  $69000  $34800

(tax)

Depreciation     $42000   $67200      $40320    $24150     $24150   $12180

tax shield (tax)

The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The ultimate goal of operations management is to provide, in a timely and successful manner, goods and/or services to the final customer.

In this sense, operation management is customer-focused, and for this reason, its main task is to ensure the successful production and/or delivery of a good or service, from the moment the inputs enter the firm, to the moment the output exits the firm and reaches the final customer.

Wayne is working at the overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager thinking he would get a good explanation. However, he is instructed to follow protocol and sent away. Also, he is informed that only team leads are allowed to approach senior managers. This implies that the organization has a ______ score.
A) high Individualism/Collective Index
B) high Power Distance Index
C) low Individualism/Collective Index
D) low Power Distance Index
E) high Uncertainty Avoidance Index

Answers

Answer:

B)High Power Distance Index

Explanation:

From the question, we are informed about Wayne who is working at the overseas branch of his organization. He needs some clarification about a project. He approaches a senior manager thinking he would get a good explanation. However, he is instructed to follow protocol and sent away. Also, he is informed that only team leads are allowed to approach senior managers. In this case, the organization has a High Power Distance Index score. The power-distance index can be regarded as way to measure acceptance of hierarchy of wealth/power by some people in a nation, business as well as culture. power-distance index helps to know how well citizen can accept authority or challenge authority of those in power.

Mather Company purchased equipment on January 1, 2012 at a total invoice cost of $224,000; additional costs of $4,000 for freight and $20,000 for installation were incurred. The equipment has an estimated salvage value of $8,000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2013 if the straight-line method of depreciation is used is:

Answers

Answer:

$96,000

Explanation:

Note that December 2013 is the end of the second year since the equipment was purchased, hence, the accumulated depreciation is 2-year accumulated depreciation which is shown thus:

Annual depreciation=(cost of equipment-salvage value)/useful life

The cost of equipment includes total invoice cost, freight, and installation costs

The cost of equipment=$224,000+$4,000+$20,000

The cost of equipment=$248,000

salvage value=$8,000

useful life= 5 years

Annual depreciation=($248,000-$8000)/5

Annual depreciation=$240,000/5

Annual depreciation=$48,000

Accumulated depreciation for  2 years=$48,000*2

Accumulated depreciation for  2 years=$96,000

Coronado Corporation had income from continuing operations of $10,661,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $190,500. Prior to disposal, the division operated at a loss of $321,600 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Coronado had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Coronado beginning with income from continuing operations

Answers

Answer and Explanation:

The preparation of the partial income statement for Coronado beginning with income from continuing operations is presented below:

Income from continuing operations $10,661,000

Discontinued Operations :  

Loss from operations of discontinued restaurant division ($321,600)  

After tax Loss from disposal of restaurant division ($190,500)  

Net Income  $10,148,900

Earning Per Share :  

Income from continuing operations [$10,661,500 ÷  10,000,000] $1.07

Discontinued Operations [$521,100 ÷ 10,000,000]  ($0.05121)

Net Income [$10,148,900 ÷  10,000,000]  $1.01489

On January 1, 2021, Teal Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.

February 1 Issued 125,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 98,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 58,000 shares of treasury stock

The weighted-average number of shares outstanding. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares.
Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a).

Answers

Answer:

a. The weighted-average number of shares for 2021 is 1,853,225 shares.

b. Earnings per share for 2021 = $1.95 per share

Explanation:

Note: The correct year in the requirement is 2021 not 2018 as erroneously stated parts a and b.

The explanation of the answers is now given as follows:

a. Compute earnings per share for 2021, using the weighted-average number of shares.

Note: See the attached excel file for the computation of the weighted-average number of shares.

From the attached excel file (see the bold red color), the total weighted-average number of shares for 2021 is 1,853,225 shares.

b. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a).

To calculate earnings per share for 2021, the following formula is used:

Earnings per share for 2021 = Net income of $3,605,000 during 2021 / Weighted-average number of shares for 2021

Therefore, we have:

Earnings per share for 2021 = $3,605,000 / 1,853,225 = $1.95 per share

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $5,000 under each of the following situations:
1. The first payment is received at the end of the first year, and interest is compounded annually.
2. The first payment is received at the beginning of the first year, and interest is compounded annually.
3. The first payment is received at the end of the first year, and interest is compounded quarterly.
Depoosite date: 12/31/17, i=?, n=?, Deposit= $4100, PV - 12/31/16: ?
Deposite date 12/31/18, i=?, n=?, Deposit=$4100, PV -12/31/16: ?
Deposite date: 12/31/19, i=?, n=?, Deposit= $4100, PV- 12/31/16: ?
Deposti date: 12/31/20, i=?, n=?, Depostie= $4100, PV - 12/31/16: ?
Deposit date: 12/31/21, i=?, n=?, deposite=$ 4100, PV - 12/31/16: ?

Answers

Solution :

Annual payment = [tex]$\$ 5000$[/tex]

1. The rate of interest annually = 12%

Present value [tex]$=\$5000 \times \text{PVA of} \ \$1(12\%, 5)$[/tex]

                      [tex]$=\$5000 \times 3.60478$[/tex]

                     = $ 18,023.90

2. The rate of interest annually = 12%

Present value [tex]$=\$5000 \times \text{PVAD of} \ \$1(12\%, 5)$[/tex]

                      [tex]$=\$5000 \times 4.03735$[/tex]

                     = $ 20,186.75

3. The rate of interest annually = 12%

The rate of interest quarterly = 3%

Present value = [tex]$\$5000 \times \text{PV of} \ \$1(3\%, 4) + \$5000 \times \text{PV of} \ \$1(3\%, 8) +\$5000 \times \text{PV of} \ \$1(3\%, 12) $[/tex] [tex]$+\$5000 \times \text{PV of} \ \$1(3\%, 16) + \$5000 \times \text{PV of} \ \$1(3\%, 16)$[/tex]

[tex]$= \$5000 \times 0.88849 + \$5000 \times 0.78941 + \$5000 \times 0.70138 + \$5000 \times 0.62317 + \$5000 \times 0.55368$[/tex][tex]$=\$ 17,780.65$[/tex]

The Puck and Pawn Company manufactures hockey sticks and chess sets. Each hockey stick yields an incremental profit of $2 and each chess set, $4. A hockey stick requires 4 hours of processing at machine center A and 2 hours of processing at machine center B. A chess set requires 6 hours at machine center A, 6 hours at machine center B, and 1 hour at machine center C. Machine Center A has a maximum of 120 hours of available capacity per day, machine center B has 72 hours, and machine center C has 10 hours. If the company wishes to maximize profit, how many hockey sticks and chess sets should be produced per day

Answers

Answer:

For number of units of hockey stick = 24

For number of units of chess sets = 4

Maximum possible profit = $64

Explanation:

Decision Variables:

Number of units of Hockey sticks and chess sets

Number of Units           Hockey Sticks               Chess Sets

                                              H                                     C

Objective Function:

Maximize the total profit:

Max P = 2H + 4C

Constraints:

4H + 6C [tex]\leq[/tex] 120 hours    ---> A

2H + 6C [tex]\leq[/tex]  72 hours    ---->B

          C  [tex]\leq[/tex]  10 hours -----> C

H, C [tex]\geq[/tex] 0

For this question to solve, we need to draw a feasible region diagram, which I have attached in the attachment. Please refer to it.

So,

Points According to the feasible region are:

D(0,10) ; A(6,10) ; B(24,4) ; C(30,0) ;

Value of objective function at corner points:

At D(0,10) ;  P = 2H + 4C = 2x0 + 4 x 10 = $40

At A(6,10);   P = 2H + 4C = 2x6 + 4x10 =  $52

At B((24,4) : P = 2H + 4C = 2 x 24 + 4x4 = $64

At C(30,0) ; P = 2H +4C = 2x30 + 4x0 = $60

Hence,

P is maximum at corner point B(24,4)

For number of units of hockey stick = 24

For number of units of chess sets = 4

Maximum possible profit = $64

Tomas, manager of a 50-person engineering department, exhibits group maintenance behaviors; that is he ensures employee satisfaction, harmonious work relationships, and the department's social stability. However, his division manager, Stan, notes that Tomas' department rarely achieves its yearly goals, in terms of work speed, quality and accuracy, output, and compliance with company policies and requirements. How would you advise Stan to coach Tomas to perform his job at a higher level and to increase the performance of Tomas' organization

Answers

Answer: Tell Thomas to focus more on task performance behaviors.

Explanation:

The options are:

a. Tell Thomas to focus more on group maintenance behaviors.

b. Tell Thomas to focus more on participative leadership.

c. Tell Thomas to focus more on task performance behaviors.

d. Tell Thomas to focus more on democratic leadership.

e. Tell Thomas to focus more on social factors.

Based on the information given in the question, the answer will be for Thomas to focus more on task performance behaviors.

This will enable Thomas to know whether the employees in the department are performing their roles well or not. He already exhibits group maintenance behaviors and participative leadership. Therefore, option C will be the right answer.

Revise the following sentences to eliminate flabby expressions.

a. Despite the fact that we lost the contract, we must at this point in time move forward.
b. In the event that interest rates increase, we will begin investing in the very near future.

Answers

Answer:

. Despite the fact that we lost the contract, we must at this point in time move forward.

Explanation:

Yale Corporation issued to Zap Corporation $70,000, 10% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1, 2020. Assume that the company uses the effective interest method for amortization. If the bonds were sold at 97, yielding 10.5%. What is true for journal entries to be made at June 30, 2020, for interest payment if Effective interest method is used?

Answers

Answer:

Journal Entry

June 30, 2020

Dr. Interest expense __$3,564.75

Cr. Discount on bonds_$64.75

Cr. Cash ___________$3,500

[To record interest]  

Explanation:

First, we need to calculate the issuance price of the bond

Issuance price of the bond = Face value x Seling rate = $70,000 x 97/100 = $67,900

Now we need to calculate the discount value as follow

Discount = Face value - Isuance vaue = $70,000 - $67,900 = $2,100

Now, need to calculate the discount amortization as follow

Discount amortization = ( Carrying value of bond x Effective interest rate x 6/12 ) - ( Face value x Coupon rate x 6/12 ) = ( $67,900 x 10.5%x 6/12 ) - ( $70,000 x 10% x 6/12 = $3,564.75 - $3,500 = $64.75

Now calculate the interest payment

Interst payment = Face value x Coupon rate x 6/12 = $70,000 x 10% x 6/12 = $3,500

The bonds would expire on the date of maturity, and the issuing company will pay the debt holder the face value of the bond.

The issue price is termed as the price at which the issuer of the bond sells the bonds for the first time.

The Journal entry has been attached below.  

The calculation of the issuance price of the bond:

Issuance price of the bond = [tex]\text{Face value} \times \text{Seling rate} = \$70,000 \times \frac{97}{100}[/tex] = $67,900

Calculation of the discount value:

Discount = Face value - Isuance vaue = $70,000 - $67,900 = $2,100

Calculation of the discount amortization:

Discount amortization = [tex]( \text{Carrying value of bond} \times \text{Effective interest rate} \itimes \frac{6}{12} ) - ( \text{Face value} \times \text{Coupon rate} \times \frac{6}{12})[/tex]

= [tex]( \$67,900 \times 10.5\%\times \frac{6}{12}) - ( \$70,000 \times 10\% \times \frac{6}{12})[/tex]

= $3,564.75 - $3,500 = $64.75

Calculation of the interest payment:

Interst payment =[tex]\text{ Face value} \times \text{Coupon rate} \times \frac{6}{12} = \$70,000 \times 10\% \times \frac{6}{12}[/tex]= $3,500

To know more about the calculation of the interest payment, refer to the link below:

https://brainly.com/question/9256832

The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:
Inventory $890,000
Total assets $3,500,000
Current ratio 2.40
Acid-test ratio 1.40
Debt to equity ratio 1.5
Required:Determine the following 2016 balance sheet items:1. Current assets2. Shareholders' equity3. Non-current assets4. Long-term liabilities

Answers

Answer:

1. Current assets $2,136,000

2. Shareholders' equity $2,000,000

3. Non-current assets $1,364,000

4. Long term liabilities = $610,000

Explanation:

Calculation to determine the following 2016 balance sheet items: Current assets, Shareholders' equity, Non-current assets and Long-term liabilities

1. Current assets

First step is to calculate the Acid test ratio using this formula

Acid test ratio = (Current assets-Inventory)/Current liabilities

Let plug in the formula

1.40 = (2.40X-$890,000)/X

1.40X = 2.40X-$890,000

-1.00X = $890,000

X=$890,000/1.00

X = $890,000

Now let calculate the Current assets

Current assets =$ 890,000*2.4

Current assets = $2,136,000

Therefore Current assets will be $2,136,000

2. Shareholders' equity

Using this formula

Total assets = Debt+Equity

Let plug in the formula

$3,500,000 = 1.5X+X

X = $2,000,000

Therefore Shareholders' equity will be $2,000,000

3 .Non-current assets

Long term assets = $3,500,000- $2,136,000

Long term assets = $1,364,000

Therefore Non-current assets will be $1,364,000

4. Long-term liabilities

Long term liabilities =[($3,500,000-$2,000,000)-$890,000]

Long term liabilities =$1,500,000-$890,000

Long term liabilities = $610,000

Therefore Long term liabilities will be $610,000

what is the main difference between regular work hours and overtime​

Answers

Answer:

regular work hour- employee are expected to on the basis of their employment contract.

overtime- hours worked exceed normally scheduled working hours.

Presented below is information related to Wyrick Company:(1.) The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock.(2.) 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $5 per share for the common stock.(3.) 5,000 shares of preferred stock are sold for cash at $120 per share.(4.) The company issues 100 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $60 per share.Instructions:Prepare the general journal entries necessary to record these transactions.

Answers

Answer and Explanation:

The journal entries are shown below:

1.   No journal entry is required  

2.   Land    300,000  

                 Common Stock                40,000  

                Paid-in Capital in Excess  

                 of Stated Value      260,000

(Being the land is purchased by the issue of the shares)

3.   Cash       600,000  

                 Preferred Stock                 500,000

                 Paid-in Capital in Excess

                of Par—Preferred Stock     100,000

(Being the preferred stock is issued for cash)

4.   Organization Expense    6,000

                  Common Stock                 500

                  Paid-in Capital in Excess

                  of Stated Value    5,500

(Being organizaiton expense is recorded)

Which of the following statements is true? Group of answer choices When you invest money, you are taxed each year on any capital gains even if you do not sell the asset. Both when you invest money, you are taxed each year on any capital gains even if you do not sell the asset and you will be taxed each year that you receive a dividend from an investment are correct. You will be taxed each year that you receive a dividend from an investment. Interest earned on an investment is considered to be tax free until you sell the investment.

Answers

Answer:

Interest earned on an investment is considered to be tax free until you sell the investment.

Explanation:

Time Value of Money is Simply know as to the truth or fact that money received today is worth more money received next year or the year after it.

Future Value is the rate or amount of money an investment will grow to over some period of time at some given interest rate. Investment is simply known as the buying or purchase of assets with the aim of increasing future income and interest.

After-tax rate of returns of investments depends on Before-tax rate of return., When investment income and gains are taxed,Taxed annually, e.t.c.

what is the meaning of gpp in poultry industry​

Answers

Answer:

five year ghana poultry program

Explanation:

five-year Ghana Poultry Program
Lmk if right or not

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:


FMV Adjusted Basis Appreciation

  Cash $32,250 $32,250
  Receivables 18,600 18,600
  Building 136,000 68,000 68,000
  Land 269,250 89,750 179,500
Total $456,100 $208,600 $247,500
Payables $27,200 $27,200
  Mortgage* 135,750 135,750
Total $162,950 $162,950


Ernesto was asking for $408,000 for the company. His tax basis in the BLI stock was $150,000. Included in the sales price was an unrecognized customer list valued at $150,000. The unallocated portion of the purchase price ($68,000) will be recorded as goodwill. Required:
a. What amount of gain or loss does BLI recognize if the transaction is structured as a direct asset sale to Amy and Brian? What amount of corporate level tax does BLI pay as a result of the transaction, assuming a tax rate of 34 percent?
b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a direct asset sale to Amy and Brian, and BLI distributes the after-tax proceeds (computed in question a) to Ernesto in liquidation of his stock?
c. What is the nature of tax benefits to Amy and Brian as a result of structuring the acquisition as a direct asset purchase?
d. What is the tax basis in the assets received by Amy and Brian?

Answers

Answer:

Bottom Line, Inc. (BLI)

a. The amount of gain that BLI should recognize if the transaction is structured as a direct asset sale to Amy and Brian is:

= $199,400

BLI will a corporate tax of $ 67,796 ($199,400 * 34%) as a result of the transaction.

b. The amount of gain that Ernesto recognizes when BLI distributes the after-tax proceeds to Ernesto in liquidation of his stock is:

=  $190,204

c. Amy and Brian can step up the tax basis of the assets to their fair market values.

d. The tax basis in the assets received by Amy and Brian is:

= $408,000

Explanation:

a) Data and Calculations:

                          FMV    Adjusted Basis         Appreciation

Cash               $32,250       $32,250

Receivables       18,600          18,600

Building           136,000         68,000               68,000

Land               269,250         89,750              179,500

Total              $456,100    $208,600           $247,500

Payables        $27,200       $27,200

Mortgage*      135,750        135,750

Total            $162,950      $162,950

Net Value    $293,150       $45,650

Sales price for the company = $408,000

Ernesto tax basis in BLI stock =  150,000

Difference =                              $258,000

Unrecognized customer list =    150,000

Unallocated Goodwill =            $108,000

Gain to be recognized if transaction is a direct asset sale:

Sales price =   $408,000

Adjusted basis 208,600

Capital gain =  $199,400

After-tax proceeds:

Sales price =                             $408,000

Corporate tax on capital gain = $ 67,796

After-tax proceeds =                $340,204

Ernesto's tax basis =                  150,000

Capital gain for Ernesto =        $190,204

What is the difference between Absolute Advantage and Compartive Advantage?

Answers

Answer: See explanation

Explanation:

Absolute advantage simply means when an economic entity such as individuals or the firms can produce a particular good more efficiently than others who produce similar good. In this case, a larger quantity is produced when compared to others.

Comparative advantage is when an economic agent can actually produce goods at an opportunity cost that's lower than the opportunity cost of its competitors. Due to this, such economic agent can sell its good at a cheaper price than others and therefore make more revenue.

Suman said that, "she didn't understand the
direct and indirect speech

Answers

Explanation:

Indirect speech, also known as reported speech or indirect discourse (US), is a means of expressing the content of statements, questions or other utterances, without quoting them explicitly as is done in direct speech. For example, He said "I'm coming" is direct speech, whereas He said (that) he was coming is indirect speech. Indirect speech should not be confused with indirect speech acts.

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine

Answers

Answer:

1. $6,100

2. $3,000

3.$41,000

4.7.3%

Explanation:

1. Calculation for What is the annual depreciation expense associated with the new bottling machine

Depreciation expense= 61,000/10

Depreciation expense=$6,100

2. Calculation for What is the annual incremental net operating income provided by the new bottling machine

Reduction in Operating costs 9,000 ($15,000-$6,000)

Less: Depreciation expense $6000

Incremental net operating income $3,000

3. Calculation for What is the amount of the initial investment

Purchase cost $61,000

Less: Salvage value of old machine $20,000

Initial Investment $41,000

4. Calculation for What is the simple rate of return on the new bottling machine

Incremental net operating income 3000

÷ Initial Investment 41000

Simple rate of return 7.3%

(3,000÷41,000)

Toby Toy Store has noticed the following items that need to be considered for its income statement for the year ended December 31, 2019: Commissions of $3,000 for salespeople who made sales in December will be paid on January 3, 2020.

The phone bill of $400 for December was received and will be paid on January 20, 2020.
The store rent of $2,000 for January 2020 was paid on December 28, 2019.
At the beginning of November, Toby paid $1,500 for advertising in a monthly magazine that is distributed in November and December of 2019, and January of 2020.

What is the proper amount of expenses to be included in the income statement for the year?
a. $4,400.
b. $6,900.
c. $6,400.
d. $5,900.

Answers

Answer: $4400

Explanation:

The proper amount of expenses to be included in the income statement for the year will be calculated as:

Commissions for salespeople who made sales in December = $3000

Add: Phone bill = $400

Add: Advertisement = $1000

Total expense = $3000 + $400 + $1000 = $4400

N.B: The commission and telephone charge were incurred in December 2019 and should be added.

The store rent of $2,000 for January 2020 was paid on December 28, 2019. This won't be added since it was for 2020.

Advertisiment of $1,500 was paid for November 2019, December 2019 and January 2020. We are concerned with that of November and December 2019. This will be: $1500 × 2/3 = $1000

TheThe economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage: a. The minimum wage law causes unemployment. b. Unemployment would be lower without a minimum wage law. c. Minimum wage laws benefit some workers and harm others. d. The minimum wage should be more than $7.25 per hour. economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage:

Answers

Answer:

a. The minimum wage law causes unemployment. - Positive statement

This is a positive statement because it describes a factual statement about minimum wage. It does not say whether minimum wage is a good thing or not, even if the inherent quality of the statement can be somewhat inferred.

b. Unemployment would be lower without a minimum wage law. - Postive statement.

This is a positive statement for the same reasons as the statement above. Besides, this statement says exactly the opposite as the statement above.

c. Minimum wage laws benefit some workers and harm others. - Positive statement.

This statement is also positive, it does not establish whether minimum wage is a good or a bad, thing, and it also does not recommend any policy regarding minimum wage.

d. The minimum wage should be more than $7.25 per hour. - Normative statement.

This above is a normative statement. It clearly establishes a preference when it comes to minimum wage, and recommends a public policy according to it: $7.25 per hour.

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
Salaries $470,000
Federal income taxes to be withheld 94,000
Federal unemployment tax rate 0.60%
State unemployment tax rate (after
FUTA deduction) 5.40%
Social security tax rate 6.20%
Medicare tax rate 1.45%
Required:
1. Calculate the income and payroll taxes for the January 2018 pay period.
2. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period.

Answers

Answer and Explanation:

1. The computation is shown below:

As we know that employee taxes involved the social security tax, medicare tax and the income tax

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

And,

Income tax withheld = $94,000

Now payroll taxes involved social security tax, Medicare tax, Federal unemployment tax, and state unemployment tax.

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

Federal unemployment tax is

= Gross pay × 0.6%

= $470,000 × 0.6%

= $2,820

State unemployment tax

= Gross pay × 5.40%

= $470,000 × 5.40%

= $25,380

2. Now the journal entries are

On January, 2018

Salaries wages expense  $470,000

       To Withholding income tax payable  $94,000

       To Social security tax payable  $29,140

       To Medicare tax payable $6,815

       to Salaries and wages payable $340,045

(being salaries and wages expense is recorded)

On Jan 2018

Payroll tax expense  $64,155

      To Social security tax payable $29,140

      To Medicare tax payable $6,815

      To Federal unemployment tax payable $2,820

      To State unemployment tax payable $25,380

(being tax liabilities is recorded)  

 

 

Cullumber Co. began operations on January 2, 2020. It employs 15 people who work 8-hour days. Each employee earns 11 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.50 in 2021. The average vacation days used by each employee in 2021 was 10. Cullumber Co. accrues the cost of compensated absences at rates of pay in effect when earned
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.

Answers

Answer and Explanation:

The Journal entries are shown below:

On 2020,

Wages expense Dr. $23,760(15 × 8 hrs × 11 days × $18)

     To vacation wages payable  $23,760

(To record the wages expense)

On 2021

Wages expense Dr $1,800

Vacation wages payable $21,600 (15 × 8 hrs × 10 days × $18)

         To Cash $23,400 (15 × 8 hrs × 10 days × $19.50)

(To record the cash paid)

Wages expense Dr.$25,740 (15 × 8 hrs × 11 days × $19.50)

     To vacation wages payable  $25,740

(To record the wages expense)

What is another term for the buying and selling of stocks?

A.) Entrepreneurial ability.
B.) Trading.
C.) Shares.
D.) Lack of scarcity.

Answers

B I’m pretty sure have a great day
the answer is trading
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