Tennis Shoe Tower issued 4.000 shares of $1 par value stock for $10 a share. The journal entry to record this transaction would include a Capital A. Credit of $36.000. B. Debit of $36.000. C. Credit of $4.000. D. Debit of $4,000.

Answers

Answer 1

The journal entry to record Tennis Shoe Tower's issuance of 4,000 shares of $1 par value stock for $10 per share would be:

Cash                             $36,000
  Capital (or Common Stock)         $4,000
       Additional Paid-in Capital of  $32,000

The journal entry to record Tennis Shoe Tower's issuance of 4,000 shares of $1 par value stock for $10 per share would involve a detailed and long answer to explain the accounting treatment for this transaction. Firstly, we need to understand that the par value of a stock is the minimum price at which a share can be issued, and it is set by the company at the time of incorporation. In this case, the par value of Tennis Shoe Tower's stock is $1 per share.

Now, let's look at the options given in the question. Option A states that the transaction would involve a credit of $36,000. This implies that the company is receiving $36,000 in cash for the issuance of its stock. However, this is incorrect as the company is only issuing 4,000 shares at $10 per share, which amounts to a total of $40,000.

Option B states that the transaction would involve a debit of $36,000. This option is also incorrect as it implies that the company is paying $36,000 for the issuance of its stock, which is not the case.

Option C states that the transaction would involve a credit of $4,000. This option is incorrect as well because it only considers the par value of the shares issued, which is $1 per share. However, the company is actually issuing its shares at a premium of $9 per share ($10 selling price - $1 par value), which means that it is receiving a total of $36,000 in excess of its par value.

Option D states that the transaction would involve a debit of $4,000. This option is also incorrect as it only considers the par value of the shares issued, which is $1 per share. The correct answer is option C, which involves a credit of $36,000 to the company's Capital account. This amount represents the total proceeds received by the company from the issuance of its stock at a premium of $9 per share. This entry reflects the fact that the company received $36,000 in cash, which is credited to the Cash account, and that the Capital account is credited with $4,000, which represents the par value of the shares issued. The Additional Paid-in Capital account is debited with $32,000, which represents the excess of the selling price over the par value.

In conclusion, a detailed and long answer to this question involves explaining the par value of a stock, the concept of stock issuance at a premium, and the accounting treatment for such transactions. The correct journal entry to record Tennis Shoe Tower's issuance of 4,000 shares of $1 par value stock for $10 per share would involve a credit of $36,000 to the Capital account and a debit of $32,000 to the Additional Paid-in Capital account.

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Related Questions

After some preliminary research in 2000, unilever’s dove soap brand initiated its campaign for real beauty campaign. This tactic relates to women’s:.

Answers

This tactic relates to women’s self-concept.

What is self-concept?

Self-concept is a set of ideas about oneself. Self-concept, in general, embodies the response to the question "Who am I?" Self-concept differs from self-awareness, which is the degree to which one's attitudes and dispositions are defined, consistent, and currently applicable. The questionnaire examines five self-concept categories (intellectual, social, emotional, family, and physical) that reflect diverse attributes that are variably associated with specific aspects of human activity

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What advantage did the soviet union have in directing resources toward a total war economy?

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It is advantageous when it comes to mobilizing resources and industrial workers for the war. Most countries struggled to adapt to a full war economy, but Russia's command economy was already so close to this concept that it was easier to require citizens and businesses to participate in the war.

Increased military spending during conflict creates employment, and additional economic activity and contributes to the development of new technologies that can penetrate other industries. These are some of the well-discussed positive benefits of increased government spending on military spending.

All-out wars like World War I and World War II mobilize all the resources of society (industry, finance, labor, etc.) to fight the war. It also extends the purpose of the war to include all civilian resources and infrastructure.

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Business cycles refer to the:____.
a. continued expansion in real gdp.
b. recurrent swings (up and down) in real gdp.
c. continued decline in real gdp.
d. period when real gdp grows at unusually high rates.

Answers

Business cycles refer to the recurrent swings (up and down) in real GDP.

Economic downturns were seen by economists in both the United States and Europe as "diseases" that needed to be addressed; as a result, countries with a history of development and prosperity were considered to be "healthy" economies.

However, by the end of the 19th century, a large number of economists had come to understand that economies were cyclical by their very nature, and research was increasingly focused on identifying the primary factors that shaped the direction and disposition of national, regional, and industry-specific economies.

Economic experts, corporate leaders, and business owners point to a number of elements as being particularly crucial in determining the character of business settings today.

Hence, option C is correct.

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write the answer in a income statement sheet

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The income statement has net income of $4710.

Income statement

Income statement for the year ended November 30, 2020

Repair Revenue $9900

Installation fees  $1600

Total revenue $11,500

Expenses:

Salaries expense $2600

Rent expense $2000

Advertising expense $850

Supplies expenses $185

Utilities expense $235

Insurance expense $150

Delivery expense  $770

Total expenses $6790

Net income $4710

($11,500-$6790)

Therefore the income statement has net income of $4710.

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Writing the net income in an Income statement sheet for Riley Repair Shop for the year ended November 30, 2020, is as follows:

Riley Repair Shop

Income Statement

For the year ended November 30, 2020

Revenue:

Repair Revenue     $9,900

Installation fees        1,600

Total revenue                       $11,500

Expenses:

Salaries                  $2,600

Rent                          2,000

Advertising                 850

Supplies                      185

Utilities                       235

Insurance                   150

Delivery                     770

Total expenses                   $6,790

Net income                          $4,710

What is an income statement?

An income statement is a financial statement that summarizes an entity's revenue and expenses to determine the net income.

It is also called an income summary and determines the entity's financial performance for a financial period.

Thus, Riley Repair Shop's income statement shows that it earned a net income of $4,710 for the year ended November 30, 2020.

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question is in the image below! please help!

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Based on the discount offered by Next furniture, the discounted price of a sofa would be $669.33

What is the discounted price of the sofa?

This can be found as:

= Original price x (1 - discount rate)

Solving gives:

= 999 x (1 - 33%)

= 999 x 0.67

= $669.33

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Question Content Area The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

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The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

What are journal entries?A journal entry is an act of keeping or producing records of any economic or non-economic transaction.An accounting journal, which shows a company's debit and credit balances, records transactions. The journal entry can be made up of multiple records, each of which is either a debit or a credit. Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.

Inventory purchase journal entry:

Say you purchase $1,000 worth of inventory on credit. Debit your Inventory account $1,000 to increase it. Then, credit your Accounts Payable account to show that you owe $1,000. Because your Cash account is also an asset, the credit decreases the account.

Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

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The question you are looking for is here:

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

(A) Jan. 1    cash                    1,500

                     Account receivables                    1,500

(B) Jan. 1    Purchases                    1,500

                     Account payable                          1,500


(C) Jan. 1    Inventory                    1,500

                     Office Supplies                             1,500

(D) Jan. 1    Inventory                    1,500

                     Cash                                              1,500

David, a real estate broker representing the seller, received an offer on his client's property for $450,000, $50,000 below the asking price. However, the prospective buyer told David that he is capable and willing to offer up to $525,000. According to David's fiduciary duties to his client, what should he tell the client...

Answers

The client should be told that the potential buyer is prepared to pay $25,000 more than the asking price. This is further explained below.

What is a real estate broker?

Generally,  Real estate brokers are real estate agents who successfully complete additional schooling requirements and get a state real estate broker license.

In conclusion, Informing the customer that a buyer is willing to pay $25,000 more than the asking price is appropriate.

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The concept that smaller sized companies are riskier and, therefore, should have a higher cost of equity is known as which of the following

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The concept that smaller sized companies are riskier and, therefore, should have a higher cost of equity is known as the size premium.

What is Equity?Equity, also known as shareholders' equity or owners' equity for privately held businesses, is the sum of money that would remain in the hands of a company's shareholders in the event that all of its assets were sold off and its liabilities were fully settled. It is the worth of company sales less any obligations owing by the company that were not transferred with the sale in the case of an acquisition.

One of the most frequently used pieces of information by analysts to evaluate a company's financial health is equity, which can be found on a company's balance sheet.

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In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

Answers

In a direct channel, the same member both produces and distributes a product or service to consumers.

What are Distribution Channels ?

Distribution channel (or supply chain) set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption - consists of all the institutions and marketing activities in the marketing process.

There are two types of distribution:

Direct-occurs when the suppliers and the tourist deal directly with each other. A direct channel allows the consumer to make purchases from the manufacturer

Indirect- occurs when part or all of the functions are handled by an intermediary. A indirect channel allows the consumer to buy the goods from a wholesaler or retailer.

Therefore, we can conclude that the correct option is B.

Your question is incomplete, but most probably your full question was:

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

a. tiered

b. direct

c. horizontal

d. vertical

e. exclusive

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Sources of financing for corporations include ______. (Check all that apply.) Multiple select question. issuing stock borrowing collecting accounts receivable fixed asset retirements

Answers

Sources of financing for corporations include issuing stock and borrowing.

How would you define financing?

The process of raising capital or finances for any type of spending is known as finance. It is the act of directing various financial resources—such as credit, loans, and invested capital—to those parts of the economy that need them most or can use them most effectively.

Family and friends, equity providers, debt providers, and institutional investors are the four types of frequent funding sources employed in developing countries.

Any economic system that makes use of financing is essential because it enables businesses to buy goods that are out of their immediate price range. To put it another way, financing is a means to use the time value of money (TVM) to employ anticipated future cash flows for projects.

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Which of the following falls outside of the classification of business expenditures that fall into the category of variable costs?
a) costs that increase with the quantity produced
b) costs of research and development
c) costs related to labor expenditures
d) costs related to physical inputs

Answers

The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

What is a costs of research and development?

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

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M/b ratios typically exceed -select- , which means that investors are willing to pay more for stocks than their accounting book values.

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M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.

The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.

The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.

Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.

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The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.

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The given statement is False, The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.

The U.S. is a rustic of fifty states protecting a sizable swath of North us, with Alaska in the northwest and Hawaii extending the nation’s presence into the Pacific Ocean. The most important Atlantic Coast cities are new york an international finance and subculture center, and the capital Washington, DC. Midwestern town Chicago is thought for influential architecture and on the west coast, Los Angeles Hollywood is famed for filmmaking.

There are fifty (50) states and Washington D.C.The remaining states to sign up for the Union had been Alaska (49th) and Hawaii (fiftieth). both joined in 1959. Washington D.C. is a federal district under the authority of Congress. Local authorities are administered by using a mayor and 13-member city council.

Guam (officially the Territory of Guam) is an unincorporated and prepared territory of ours. Positioned in the western Pacific Ocean, Guam is considered one of five American territories with longtime civilian authorities.

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The question is incomplete. Please read below to find the missing content.

The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.True/False

Does the firm generate enough internal funds to support anticipated investment, or does additional outside capital need to be raised?.

Answers

Statement of cash flows - does the firm generate enough internal funds to support anticipated investment or does additional outside capital need to be raised?

A Cash Flow Statement is what?

A cash flow statement is a type of financial statement that gives total information about all of the cash inflows a business makes from continuing activities and outside investment sources. It also includes any cash outflows made within a specific time period to cover investments and business expenses.

The financial statements of a firm give investors and analysts a picture of all the business transactions that take place, where each transaction helps the company succeed. Because it tracks the cash generated by the business in three key ways—through operations, investments, and financing—the cash flow statement is seen to be the most understandable of all the financial statements. These three elements are added together to form net cash flow.

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In order to provide more complete information, u.s. gaap allows that any significant noncash investing and financing activities may be reported:____.

Answers

It is reported as foot notes  in cashflow statement or in the notes of financial statements.

When an income statement is converted to cash flows from operational operations, noncash items like as depreciation and nonoperating profits and losses are not included. Non-cash investing and financing entails making an investment or purchase using financial instruments other than cash.

The Generally Accepted Accounting Principles (GAAP) are a collection of generally observed financial reporting accounting standards and regulations. The four main constraints of GAAP are objectivity, the materiality, the consistency, and the prudence.

Companies are required by both IFRS and US GAAP to declare any substantial non-cash investment and financing operations, either as a footnote at the bottom of the statement of the cash flows or in  notes to the financial statements.

Therefore, the answer is the bottom of the statement of  the cash flows or in the notes to  financial statements.

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If inflation rises unexpectedly by 5%, indicate for each of the following why the economic actor is helped, hurt, or unaffected: a) A union member with a COLA wage contract. b) Someone with a large stash of cash in a safe deposit box. c) A bank lending money at a fixed rate of interest. d) A person who is not due to receive a pay raise for another 11 months.

Answers

The person who is helped by the unexpected inflation is a person who is not due to receive a pay raise for another 11 months.

What is inflation?

Inflation is when there is a rise in the general price levels of an economy. When inflation is not expected, it would not be factored into the prices in the economy. Thus, those who received fixed wages are hurt. Also lenders are hurt.

A person who is not due to receive a pay raise for another 11 months is helped because in 11 months, the inflation would already be factored into the wage increase.

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The feature that differentiates monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms . Question 2 options: cannot influence market price by virtue of their size alone. are price takers. do not have price as a decision variable. benefit from barriers to entry.

Answers

Monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.

What is a monopoly?A monopoly occurs when there is a single seller in the market. The monopoly case is considered the polar opposite of perfect competition in conventional economic theory. The demand curve facing the monopolist is, by definition, the industry demand curve, which is downward sloping.What is oligopoly?Oligopolistic markets are characterized by a small number of suppliers. They can be found in all nations and in a wide range of industries. Some oligopoly markets are very competitive, whereas others are substantially less so, or appear to be.

Monopolistically competitive enterprises, unlike monopolies and oligopolies, cannot influence market prices only through their size.

Therefore, monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.

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Correct question:

The feature that differentiates monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms.

(A) cannot influence the market price by virtue of their size alone.

(B) are price takers.

(C) do not have a price as a decision variable.

(D) benefit from barriers to entry.

When people have formed _____, each is an agent of the group so that the members of the joint enterprise share liability

Answers

When people have formed partnership, each is an agent of the group so that members of the joint enterprise share liability. A formal agreement between two or more parties to run a business and split  profits is called a partnership. A partnership may have tax advantages over a corporation.

Partnership arrangements come in many different forms. One type of business where partners may have minimal liability is a partnership where all members share profits and liabilities equally. All partners in a general partnership corporation split the company's assets and debts equally. Lawyers and other professionals frequently create limited liability partnerships.

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The most competitively effective and very likely most profitable long-term approach to reducing or eliminating the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe-Africa is to

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Build and equip a production facility in Europe-Africa and then expand it as may be needed to supply all ( or at least most) of the pairs the company intends to try to sell in Europe-Africa is the most competitively effective and very likely most profitable long-term approach to reduce or eliminate the impact of paying tariffs imported to a company's distribution warehouse in Europe-Africa.

Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade limitations that raise prices and decrease available quantities of goods and services for U. S. businesses and customers.

A “unit” or specific tariff is a tax levied as a fixed charge for each unit of a good that is imported – for instance, $300 per ton of imported steel. An “ad valorem” tariff is levied as a proportion of the value of imported goods. An example is a 20 percent tariff on imported automobiles.

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The client may spend the latent phase of the first stage of labor at home unless which occurs?

Answers

The client may spend the latent phase of the first stage of labor at home unless the client experiences a rupture of membranes occurs.

The cell membrane is a biological membrane that separates the inside of all cells from the external environment and protects the cells from that environment.

The membrane is composed of lipids and proteins and acts as a barrier to cells and organelles. Membranes keep the outside "outside" and the inside "inside", allowing only specific molecules to intersect and relay messages through a series of molecular events.

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The choice of producing the component internally or purchasing the component externally is known as the

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The choice of producing the component internally or purchasing the component externally is known as the make or buy decision.

A manufacturing or purchasing decision is the act of choosing whether to manufacture the product in-house or from an external supplier.

Make-or-buy decision is the act of choosing whether to manufacture the product in-house or from an external supplier. Similar to outsourcing decisions, making or buying decisions require comparing the costs and benefits of producing in-house and buying elsewhere.

ABC Manufacturing Company has a contract to supply 6,000 units of MVP. This also requires his 6,000 units of MVP essential components. The estimated cost of manufacturing these 6,000 units of the required components is approximately $234,000.

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A good economist will ignore ________ and focus on ________ when it comes to making the right decisions.

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A good economist will ignore sunk costs and focus on marginal value when it comes to making right decisions. In economics and finance, a sunk cost is a cost that has already been incurred and cannot be recovered.

Sunk costs are treated as by gone costs in economic decision making and are not considered when deciding whether to continue investment project. The value of the final unit of consumption is known as the marginal value to a consumer. Value of the good to the consumer who purchased the good but received the lowest value from consumption is represented by an industry demand curve.

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Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows is a difficult task principally because of:

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Uncertainty about future events
Estimating revenues (or benefits), costs, and cash flows is a challenging endeavor, especially for projects with lengthy lifespans, in large part due to uncertainty about the future.

The variability level of cash flow is referred to as the uncertainty of cash flow. On the one hand, it stands for the consistency and predictability of cash flow, but on the other, it also symbolizes the potential for future growth and improved performance of the company.
Due to changes in the macro aspect, the integrated force of the macroscopic environment and microcosmic environment, which affects cash flow, is primarily represented in economic uncertainty factors.
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Jimmy has completed the headline section of his text ad and is now writing the description section. What are three factors that Jimmy should include in the description section of his text ads? (Choose three.)

Answers

What  Jimmy should include in the description section of his text ads are:

State the  prices, and exclusive offers. Word of Encouragement for  potential customers.State why his  business is unique.

What is the importance of  text ads ?

Text ads is been used by a company to promote their business, this usually include the description about their products and services.

In this case,  Jimmy should include word of Encouragement for  potential customers in the description section of his text ads

CHECK THE COMPLETE QUESTION BELOW;

Jimmy has completed the headline section of his text ad and is now writing the description section. What are three factors that Jimmy should include in the description section of his text ads? (Choose three.)

(A) A mention of prices, promotions, and exclusive offers

(B) Encouraging potential customers to take action

(C) More landing pages to visit

(D) A variety of emoji to catch the attention of potential customers

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Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because __________________.

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Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because it requires less stress and cost.

Why is referrals by current employees better?

Publishing advert for Job opening requires a cost and this could take a lot of process before the final candidate is selected.

Getting referral could reduce the number of days and the cost of making different advertisement.

Therefore, Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because it requires less stress and cost.

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A borrower has applied for a loan from a mortgage company that intends to process the loan and then submit it to an investor for underwriting, closing, and funding. This borrower has applied with a

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A borrower has applied for a loan from a mortgage company that intends to process the loan and then submit it to an investor for underwriting, closing, and funding. This borrower has applied with a "mortgage broker".

What is mortgage broker?

On behalf of their clients, mortgage brokers conduct loan options research and deal with lenders. Additionally, a broker may arrange all loan paperwork, obtain the buyer's credit reports, confirm their income and expenses, and more.

The roles of a mortgage broker are-

To ensure that a borrower receives the best financing and the loan closes on schedule, a mortgage broker works with everyone involved in the lending process, including the real estate agent, underwriter, and closing agent.A broker may operate on their own or with a brokerage company. On behalf of their clients, mortgage brokers conduct loan options research and deal with lenders.A strong loan-pricing system that values a mortgage loan across multiple lenders at once is also available to many brokers, which speeds up and streamlines the process.

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Monique's Unique Boutique sells clothing from around the world in the United States. Monique regularly travels overseas to find the best and most unusual shirts, dresses, and pants that foreign producers have to offer. Monique is a(n)

Answers

Monique is a(n) Importer.

What is an Import?

Any good or commodity brought into one country from another. Customs authorities must be involved in both the import and export countries.

Import trade means goods and services purchased in one country from another. Because products are frequently transported by ship to foreign countries, the term "import" derives from the word "port." Imports, like exports, are the backbone of international trade.

In this case, if the cost of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit.

Objectives of Import Trade:

To speed up industrialisationTo meet domestic demandTo overcome natural disastersTo improve standard of livingTo ensure national defense

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The system of meaning and power created to determine who is related to whom and to define their mutual expectations, rights, and responsibilities is?

Answers

Answer:

kinship

Explanation:

A store gathers some demographic information from their customers. The following chart summarizes the age-related information they collected:

Answers

The probability that the customer is at least 30 but not older than 50 will be 71/238.

How to calculate the probability?

The probability that the customer is at least 30 but not older than 50 will be:

= (78 + 64)/476

= 71/238

The probability that the customer is either older than 60 or younger than 40 will be:

= (77 + 83 + 78) + 74/476

= 78/119

The probability of at least 50 years will be:

= (100 + 74)/476

= 87/238

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An important part of defining the problem in marketing research is to ________ that are neither too broad nor too narrow.

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An important part of defining the problem in marketing research is to set objectives that are neither too broad nor too narrow.

What is marketing research?Market research is a systematic attempt to learn as much as possible about target markets and consumers, starting with who they are. It is a key part of corporate strategy and a crucial element in keeping competitiveness.The needs of the market, the size of the market, and the competition are all identified and analyzed with the aid of market research. Its methods include both qualitative ones, like focus groups, in-depth interviews, and ethnography, and quantitative ones, such customer surveys and secondary data analysis.The systematic collection and analysis of data on people or organizations using statistical and analytical tools from the applied social sciences to acquire understanding or enhance decision-making encompasses social and opinion research.

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the nurse notices hyperventilation and neurological impairments in a severely malnourished client who has been recently started on enteral nutrition (en). which nutrient deficieny will the nurse understand to be the likely cause of these symptoms? how many genotypically different kinds of haploid cells can it produce? if an individual attacks a person rather than that persons ideas, the individual is committing the ad populum fallacy.T/F please help me answer thisfor the first box, the options are: 28, 46, 65, 72for the second box, the options are: 33, 54, 57, 86for the third box, the options are: did, or did not. What are the items that appear within parentheses in a calling statement called?a. argumentsb. parametersc. passersd. None of the above British Columbia Lumber has a raw lumber division and a finished lumber division. The variable costs are as? follows:Raw lumber? division:$ 130 per 100? board-feet of raw lumberFinished lumber? division: $ 170 per 100? board-feet of finished lumberAssume that there is no? board-feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $ 255 per 100? board-feet. Finished lumber can be sold at $270 per 100? board-feet.British Columbia Lumber has a raw lumber division and a finished lumber division. The variable costs are as? follows:Raw lumber? division:$130per 100? board-feet of raw lumberFinished lumber? division:$170 per 100? board-feet of finished lumberAssume that there is no? board-feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $255per 100? board-feet. Finished lumber can be sold at $270 per 100? board-feet.Requirement 1. Should British Columbia Lumber process raw lumber into its finished? form? Show your calculations.Begin by selecting the formula you will use to make your decision. Then enter the amounts in the formula. ?(Use parentheses or a minus sign when entering? losses.)Incremental revenues-Incremental costs=Gain/(loss) on further processing$15-$170=$(155)Based on? above, British Columbia Lumber should not process raw lumber into its finished form.Requirement 2. Assume that internal transfers are made at 120% of variable cost. Will each division maximize its division? operating-income contribution by adopting the action that is in the best interest of British Columbia Lumber as a? whole? Explain.Begin by calculating each? division's operating income under both actions. Start with the decision to sell as raw lumber. ?(Round your answers to the nearest whole dollar. Enter a? "0" for amounts with a zero value. Use parentheses or a minus sign when entering? losses.)Sell asraw lumberRaw lumber division:Division revenues$255Division variable costs130Division operating income (loss)$125Finished lumber division:Division revenues$0Transferred-in costs0Division variable costs0Division operating income (loss)$0Sell asfinished lumberRaw Lumber Division:$156130$26Finished Lumber Division:$270156170$(56)Will each division maximize its division? operating-income contribution by adopting the action that is in the best interest of British Columbia Lumber as a? whole? Explain.The raw lumber division will maximize reported division operating income by (Selling Raw Lumber/ Either selling raw lumbar or processing further/ Processing raw lumbar further), Which (Coinsides with/ Is contrary to) the action preferred by the company as a whole.The finished lumber division will maximize division operating income by (), Which () The action preferred by the company as a whole.3. 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