Answer: Please refer to Explanation
Explanation:
Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
FALSE.
Under regional Trade Agreements, countries do indeed eliminate tariffs amongst themselves but there is no obligation to reduce tariffs against countries not part of the agreement.
Regional trade agreements contradict GATT’s most favored nation principle.
TRUE
Regional Trade Agreements do indeed violate the GATT's and the WTO's most favoured principle which states that rights granted to 1 nation of GATT must be granted to all nations in GATT.
The countries in the European Union (EU) keep their own tariffs with the countries outside the EU.
FALSE.
As a political and economic union, the EU maintains a common tariff against countries outside the EU.
A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico.
TRUE.
Agreements between China and Mexico do not bound the US if they are not in the agreement as well. Seeing however, as there is an agreement between Mexico and the US, Mexican products can come into the US duty free so for a Chinese product to do tge same, it needs to have been added value to in Mexico.
Rules of origin specify the types of goods that can be shipped duty-free within a free trade area.
TRUE
Rules of origin are made to decide which goods can be shipped duty free.
Rules of origin specify the types of goods that can be shipped duty-free within a customs union.
FALSE.
Rule of Origin do not necessarily apply in a Customs Union as they are supposed to maintain a fixed tariff rate against all countries outside the Customs Union.
It is true that under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
Regional trade agreements contradict GATT’s most favored nation principle is true.
The countries in the European Union (EU) keep their own tariffs with the countries outside the EU is true.
A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico is true.
Rules of origin specify the types of goods that can be shipped duty-free within a free trade area is true.
Rules of origin specify the types of goods that can be shipped duty-free within a customs union is false.
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Fed could change its inflation target temporarily to offset the effect of an aggregate demand shock (a-bar). In this problem, you can calculate by how much. Suppose that the economy starts in the steady state in 2021 with pi-bar = 2%, b-bar = 1/2, m-bar = 1/2, and v-bar= 1/2. An AD shock equal to a-bar = 2% occurs in 2021.
a. Using the simple monetary policy rule, show by how much inflation and short-run output change in 2021 if the Fed keeps its target inflation equal to 2%. Calculate inflation and short-run output for 2022 and 2023.
b. Use an AD/AS diagram to show how a decrease in the inflation target can keep inflation and short-run output from starting to rise in 2021. Explain your diagram and what it reveals about monetary policy.
c. Calculate how much the Fed needs to lower its inflation target pi-bar below 2% to keep inflation and short-run output from rising.
d. Suppose the Fed adopts a Taylor rule. Show how adding a term nY (n-bar Y-bar) to the simple monetary policy rule changes the shift in the AD curve following an aggregate demand shock a-bar n the AD equation. Using the parameter values for this question, calculate the value of n-bar for the Fed that keeps inflation and short-run output from rising.
Answer:
b. Use an AD/AS diagram to show how a decrease in the inflation target can keep inflation and short-run output from starting to rise in 2021. Explain your diagram and what it reveals about monetary policy.
Carver, Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning:
Units in process 700
Percent complete with respect to materials 50%
Percent complete with respect to conversion 40%
Units started into production during the month 23,000
Work in process, ending:
Units in process 200
Percent complete with respect to materials 80%
Percent complete with respect to conversion 40%
Required:
Using the weighted-average method, what are the equivalent units of productions for materials and for conversion cost?
Answer:
Equivalents units of production for materials: 23500 + (200×80%) = 23660
Equivalents units of production for conversion: 23500 + (200×40%) = 23580
Explanation:
Find the given attachment
Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cash of $150,000. The equipment has an estimated residual value of $10,000 and an expected useful life of 10 years. At the beginning of 2017, Sadler concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero. Sadler uses the straight-line method for depreciation.
Required:
a) Prepare the journal entry to record depreciation on the equipment for 2016.
b) Prepare the journal entry to record depreciation on the equipment for 2017 including the effect of the changes in estimates.
Answer:
a) Debit Depreciation expense $14,000
Credit Accumulated depreciation $14,000
Being entries to record depreciation expense for 2016
b) Debit Depreciation expense $26,666.67
Credit Accumulated depreciation $26,666.67
Being entries to record depreciation expense for 2017
The effect of a change in estimate is a reduction of the annual depreciation from $14,000 to $26,666.67 (increase of $12,666.67) annually
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
Annual depreciation
= (150,000 - 10,000)/10
= $14,000
At the beginning of 2017,
Net book value of asset
= $150,000 - 2($14,000)
= $124,000
If Sadler concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero.
Depreciation expense for 2017
= $124,000/6
= $26,666.67
Do you have, or have you ever had test-taking anxiety? What strategies will you use to manage test anxiety?
Explanation:
My test anxiety generally comes from a desire to do well. It usually accompanies the situation where I am not as prepared for the test as I would like to be, or where I have no idea what subject matter the test may cover.
__
My anxiety management strategy is to prepare for a test as well as I can in the time allotted, and detach from the outcome. In the case of specific subject matter tests (as opposed to "achievement" tests), a well-made test will be educational, so later questions help answer earlier ones. Paying attention to that possibility also manages test anxiety by letting me go back and correctly answer questions I might have missed.
__
One of the most effective techniques for managing test anxiety (beyond a decent level of preparation), is the use of Emotional Freedom Techniques (EFT), also known as "tapping." A few rounds of tapping on specific points on bodily energy meridians can greatly relieve stress and improve test performance. The process takes only minutes to learn and execute, and can be very effective. (Look up articles or videos on EFT Tapping.)
Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 28000 Advertising expense 20600 Cash 15000 Common stock 41400 Dividends 13800 Depreciation expense 11900 Insurance expense 3100 Note payable, due 6/30/19 71400 Prepaid insurance (12-month policy) 6200 Rent expense 17300 Retained earnings (1/1/18) 58100 Salaries and wages expense 31400 Service revenue 133000 Supplies 4100 Supplies expense 5900 Equipment 210000 What is the company’s net income for the year ending December 31, 2018?
Answer:
$42,800
Explanation:
The computation of the net income for the year is shown below:
= Service revenue - advertising expense - depreciation expense - insurance expense - rent expense - salaries & wages expense - supplies expense
= $133,000 - $20,600 - $11,900 - $3,100 - $17,300 - $31,400 - $5,900
= $42,800
We simply deduct all the expenses from the service revenue so that the net income for the year could come
During April, the first production department of a process manufacturing system completed its work on 300,000 units of a product and transferred them to the next department. Of these transferred units, 60,000 were in process in the production department at the beginning of April, and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs.Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Equivalent Units of Production-FIFO Method
Particular units Material (%) Conversion (%) Material EUP Conversion EUP
Completed periods of beginning units 60,000 0.40 0.60 24,000 36,000
Started and completed units 240,000 100 100 240,000 240,000
Ending work in process units 82,000 0.80 0.30 65,600 24,600
Equivalent units of production 382,000 329,600 300,600
Particular Material cost Conversion cost
Total cost incurred $850,368 $649,296
Equivalent units of production 329,600 300,600
Cost per unit of production $2.58 $2.16
($850,368 ÷ 329,600) ($649,296 ÷ 300,600)
Total Costs for Accounts
Particular Amount ($)
Beginning period-conversion cost 48,594
Beginning period-Direct material cost 118,472
Current period-conversion cost 649,296
Current period-Direct material cost 850,368
Total costs for accounts 1,666,730
Assignment and Reconciliation Cost
Particular Per EUP cost ($) × Equivalent unit of production Total cost ($) Total amount ($)
Opening Inventory 167,066
To complete conversion 2.16 × 36,000 77,760
To complete materials 2.58 × 24,000 61,920
Complete units total cost +139,680
Total cost of 60,000 unit in opening inventory 306,746
Direct material cost 2.58 × 240,000 619,200
Conversion cost 2.16 × 240,000 518,400
Started and completed 240,000 units total cost +1,137,600
Transferred out Total cost of 300,000 units 1,444,346
Direct material cost 2.58 × 65,600 169,248
Conversion cost 2.16 × 24,600 53,136
In closing inventory Total cost of 82,000 units +222,384
Total assigned cost 16,66,730
Rene is the manager at an event and catering company. He has just received a request for proposal (RFP) for managing the City Arts Festival. The organization that managed the event and all event volunteers in past years has raised its rates considerably and the city can no longer afford to hire them. Rene would like to submit a proposal to manage the City Arts Festival. The proposal will be quite lengthy because the event draws over 200,000 people, spans three days, and has a large budget. Which type of proposal should Rene submit in this situation
Answer:
The correct answer to the following question will be "Formal proposal".
Explanation:
Usually, formal proposals become prepared for bigger projects, here as in the case the expenditure demand is high, there is a huge amount of participants as well as the plan will be extensive, so formal proposals have become an easy option because informal proposals are made for projects too.Grant applications should never be posted here since they are usually sent to a grant seeking agency or entity. That is just not Rene 's goal in this.Vaughn Manufacturing received a check for $24480 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $24480. Financial statements will be prepared on July 31. Vaughn's should make the following adjusting entry on July 31:
a. debit Unearned Rent Revenue, $2,500; credit Rent Revenue, $2,500.
b. debit Rent Revenue, $2,500; credit Unearned Rent Revenue, $2,500.
c. debit Unearned Rent Revenue, $15,000; credit Rent Revenue, $15,000.
d. debit Cash, $15,000; credit Rent Revenue, $15,000.
Answer:
The question is not correct,find below correct question:
Vaughn Manufacturing received a check for $15,000 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $15,000. Financial statements will be prepared on July 31. Vaughn Manufacturing should make the following adjusting entry on July 31:
Option A,debit Unearned Rent Revenue, $2,500; credit Rent Revenue, $2,500 is correct
Explanation:
The necessary adjustment on July 31 when financial statements are finalized is that rent of the month of July has been earned and should be recognized as rent revenue.
The amount of $15,000 was for six months ,one month rent is $2,500 ($15,000/6)
The necessary adjustment would a credit to rent revenue of $2,500 and a debit to unearned rent revenue for the same amount
Selected information from Peridot Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire machinery $ 36 Reacquired Peridot common stock 50 Proceeds from sale of land 70 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Peridot should report net cash outflows from investing activities of: Group of answer choices $46 million. $72 million. $26 million. $78 million.
Answer:
Peridot should report net cash outflows from investing activities of: $46 million
Explanation:
Peridot Corporation
Statement of cash flows (extract)
$ in millions
Purchase of machinery ($36)
Proceeds from sale of land 70
Cash paid to acquire office equipment (80)
Net cash flows from investing activities ($46)
Note that reacquired common stock belongs to financing activities section of the cash flows, while gain from sale of land and investment revenue belong to operating activities section of the cash flows
Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.
March 1 Brooks invested $195,000 cash along with $29,000 in office equipment in the company in exchange for common stock.
2 The company prepaid $8,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $8,000.
3 The company made credit purchases of office equipment for $4,200 and office supplies for $2,400. Payment is due within 10 days.
6 The company completed services for a client and immediately received $3,500 cash.
9 The company completed a $9,200 project for a client, who must pay within 30 days.
12 The company paid $6,600 cash to settle the account payable created on March 3.
19 The company paid $4,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $4,700.
22 The company received $3,900 cash as partial payment for the work completed on March 9.
25 The company completed work for another client for $3,760 on credit.
29 The company paid a $6,200 cash dividend.
30 The company purchased $1,600 of additional office supplies on credit.
31 The company paid $700 cash for this month's utility bill.
Required:
1. Prepare general journal entries to record these transactions using the following titles:
Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
Answer:
March 1
Cash $195,000 (debit)
Office equipment $29,000 (debit)
Common Stock $224,000 (credit)
March 2
Prepaid Rent $8,000 (debit)
Cash $8,000 (credit)
March 3
office equipment $4,200 (debit)
office supplies $2,400 (debit)
Accounts Payable $6,600 (credit)
March 6
Cash $3,500 (debit)
Revenue $3,500 (credit)
March 9
Trade Receivable $9,200 (debit)
Revenue $9,200 (credit)
March 12
Accounts Payable $6,600 (debit)
Cash $6,600 (credit)
March 19
Prepaid Insurance $4,700 (debit)
Cash $4,700 (credit)
March 22
Cash $3,900 (debit)
Trade Receivable $3,900 (credit)
March 25
Trade Receivable $3,760 (debit)
Revenue $3,760 (credit)
March 29
Dividend $6,200 (debit)
Cash $6,200 (credit)
March 30
Office supplies $1,600 (debit)
Cash $1,600 (credit)
March 31
Utility Bill $700 (debit)
Cash $700 (credit)
Explanation:
Identify the two Accounts Affected and place them in the respective given titles then record the journal.
Machinery purchased for $66,000 by Metlock Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,400 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,950 at the end of that time. Assume straight-line depreciation.
Required:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.
Answer:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
When an asset's useful life is extended, the extension is done prospectively, not retrospectively. This means that past depreciation does not need to be adjusted.b. Prepare the entry to record depreciation for 2021.
Dr Depreciation expense 4,510 Cr Accumulated depreciation - machinery 4,510Explanation:
purchase cost of machinery $66,000
estimated useful life 8 years
estimated salvage value $4,400
depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950
depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year
accumulated depreciation up to year 5 = $7,700 x 5 = $38,500
the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500
the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510
depreciation expense for 2021:
Dr Depreciation expense 4,510
Cr Accumulated depreciation - machinery 4,510
considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent. The debt-equity ratio is .46 and the tax rate is 21 percent. They are evaluating a project that will cost $60,000 and will cash inflows of $20,000, $30,000 and $40,000 respectively for the three years of the project. What is the net present value for this project?
Answer:
$9230.70
Explanation:
Debt ratio = Debt equity ratio / (Debt equity ratio+1) = 0.46/(0.46+1) = 0.46/1.46
Equity ratio = 1/(Debt equity ratio+1) = 1/(0.46+1) = 1/1.46
WACC = 15.4%×1/1.46+8.9%×(1-21%)×0.46/1.46 = 12.76%
Net present value = 20000/(1+12.76%) + 30000/(1+12.76%)^2 + 40000/(1+12.76%)^3 - 60000 = $9230.70
Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1, the building rents for $680 per month, payable on the first of the next month, and the tenant must make a $680 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $7,480 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $680 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,360 that is to be applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.)
a. What amounts are included in Ralph’s gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease?
Amount included in Gross Income:
b. What amounts are included in Ralph’s gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease?
Amount included in Gross Income:
c. What amounts are included in Ralph’s gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease?
Answer:
A. Amount included in gross income $0
B. Amount included in gross income $7,480
C. $2,720
Explanation:
a The amount included in Gross income this year, assuming the tenant signs lease 1 on December 1
As Ralph is a calendar year, cash method taxpayer, he will only put the cash receipt of rent
Rent for the month will be payable on first on next month, therefore, rent for December he will receive in January and the calendar year will on ends on 31st December therefore, he will not put any amount
this year.
Security deposit is a liability, and will be returned at the end of the lease, therefore it is not a income.
Amount included in gross income $0
b. The amount that is put in gross income, assuming the tenant signs lease 2 on December 31 is $7480, he has to pay
the years rent in advance when he sign the lease
Amount included in gross income $7,480
c. The amount that is put in gross income, assuming the tenant signs lease 3 on November 30, will be the amount of
rental income of 2 months (November and December) that is paid in the starting of each month and security
deposit that is to be applied toward last two months of the lease.
Amount included in gross income
Rental income is calculated as $680 x 2 months
$1,360
Security deposit is calculated as Advance rent for last two months)
$1,360
Total $2,720
The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been less than the monthly static budget of $335,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:
Wages per hour $15.00
Utility cost per direct labor hour $1.20
Direct labor hours per unit 0.75
Planned monthly unit production 100,000
Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Enter all amounts as positive numbers.
Answer:
The total units produced are as follows:
January: 90000 units
February: 100000 units
March: 110000 units
Explanation:
The total units produced are as follows:
January: 90000 units
February: 100000 units
March: 110000 units
Wages for each month are calculated as:
January: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (90000*$0.75) + (22500*$15) = $405000
February: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (100000*$0.75) + (25000*$15) = $450000
March: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (110000*$0.75) + (27500*$15) = $495000
Utilities for each month is:
January: Utility: = (hours * Utility cost per direct labor hour) = 22500 * 1.20 = $27000
February: Utility: = (hours * Utility cost per direct labor hour) = 25000 * 1.20 = $30000
March: Utility: = (hours * Utility cost per direct labor hour) = 27500 * 1.20 = $33000
Since depreciation is fixed and do not flex it is the same for all the months at $60000
The total for each month is:
January: Total = Wages + Utilities + depreciation = $405000 + $27000 + $60000 = $492000
February: Total = Wages + Utilities + depreciation = $450000 + $30000 + $60000 = $540000
March: Total = Wages + Utilities + depreciation = $495000 + $33000 + $60000 = $588000
Escents, a body lotion manufacturer from Canada, negotiated a contract with a shea butter company in Mali, Africa, to supply 40% of the needed shea butter for its products. The negotiations ended, and the process of moving shea butter supplies across Mali to the coast for shipping began. Along the way, there were delays because trucks would be stopped by washed-out roads or faulty bridges. What challenge did Escents discover with working in a less-developed country like Mali
Answer: Infrastructure Challenge.
Explanation:
A major problem in developing countries is insufficient and often damaged infrastructure. There are lack of roads and other mean of access to quite some areas in the country and those routes that do have road networks sometimes see trade still hampered by damage to those road networks.
Sometimes there would be potholes that require careful maneuvering and sometimes the roads would be washed out. In this case Escents is experiencing Dela due to washed-out roads or faulty bridges which are examples of infrastructural damage.
The following account balances appear in the 2021 adjusted trial balance of Blue Devils Corporation: Cash, $4,700; Accounts Receivable, $8,700; Supplies, $18,700; Equipment, $117,000; Accumulated Depreciation, $43,500; Accounts Payable, $25,700; Salaries Payable, $15,700; Common Stock, $57,000; and Retained Earnings,. Prepare the December 31, 2021, classified balance sheet including the correct balance for retained earnings. (Amounts to be deducted should be entered with minus sign.)
Answer:
Blue Devils Corporation balance sheet as at December 31, 2021
Non - Current Assets
Equipment, $117,000
Less Accumulated Depreciation ($43,500)
Total Non - Current Assets $73,500
Current Assets
Cash, $4,700
Accounts Receivable, $8,700
Supplies, $18,700
Total Current Assets $32,100
Total Assets $105,600
Current Liabilities
Accounts Payable, $25,700
Salaries Payable, $15,700
Total Current Liabilities $41,400
Equity
Common Stock, $57,000
Retained Earnings (Balancing Figure) $7,200
Total Equity $64,200
Total Equity and Liabilities $105,600
Explanation:
The Balance of retained earnings is determined by missing figure approach using the Accounting Equation : Assets = Liabilities + Equity.
The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017. 1. Minton paid Grand Company $400,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Minton is in business. 2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3. In January, 2018, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $180,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.Minton incurred $140,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2021.Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless.Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years.A. Prepare journal entry (ies) for on the date of transaction.B. Prepare journal entry (ies) for on December 31, 2018 to record any resultant amortization:
Answer and Explanation:
As per the data given in the question,
The journal entries are shown below:
A. On the date of transaction
1. Franchise A/c Dr. $400,000
To Cash Cr. $400,000
(Being cash paid is recorded)
2. Research and development expense A/c Dr. $600,000
To Cash Cr. $600,000
(Being cash paid is recorded)
3. Patents A/c Dr. $180,000
To Cash Cr. $180,000
(Being cash paid is recorded)
4. Patents A/c Dr. $140,000
To Cash Cr. $140,000
(Being cash paid is recorded)
5. Legal fees expense A/c Dr. $480,000
To Cash Cr. $480,000
(Being cash paid is recorded)
6. Patents expense A/c Dr. $252,000
To Patents Cr. $252,000
(Being patent expense is recorded)
7. Research and development expense $104,000
To Cash Cr. $104,000
(Being cash paid is recorded)
B. Journal entries on Dec-31, 2018
1. No journal entry is needed
2. No journal entry is needed
3. Amortization expense A/c Dr. $18,000
To Patents Cr. $18,000
(Being the amortization expense is recorded)
4. Amortization expense $35,000 ($140,000 ÷ 4 years)
To Patents Cr. $35,000
(Being the amortization expense is recorded)
5. No journal entry is needed
6. No journal entry is needed
The perceived benefit to a consumer MINUS or SUBTRACTING the price paid
Answer:
consumer surplus
Explanation:
The consumer surplus is the difference between the price a consumer is willing to pay and the price paid.
First Class, Inc., expects to sell 29,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $5, and manufacturing overhead is $0.83 per pool cue. The following inventory levels apply to 2019: Beginning inventoryEnding inventory Direct materials24,000 units24,000 units Work-in-process inventory0 units0 units Finished goods inventory1,200 units2,800 units What are the 2019 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively
Answer:
Direct material= $91,800
Direct labor= $153,000
Manufacturing overhead= $25,398
Explanation:
Giving the following information:
Sales= 29,000 pool cues
Direct materials costs are $3
direct manufacturing labor is $5
manufacturing overhead is $0.83 per pool cue
Beginning inventory Direct materials= 24,000 units
Ending inventory Direct materials= 24,000 units
Finished goods inventory Beginning= 1,200 units
Finished goods inventory Ending= 2,800 units
First, we need to determine the number of units to be produced:
Production= sales + desired ending inventory - beginning inventory
Production= 29,000 + 2,800 - 1,200
Production= 30,600 units
Direct material= 30,600*3= $91,800
Direct labor= 30,600*5=$153,000
Manufacturing overhead= 30,600*0.83= $25,398
Your text talks about free trade areas, customs unions and common markets. It also discusses basic principles of the WTO, including trade should not be discriminatory and should head in the direction of fewer rather than more barriers. And finally it discusses the welfare impacts of tariffs and other trade barriers on a country, including consumers, producers and government. Suppose three countries US ($8), Mexico ($6) and China ($4) make a good at the prices in parenthesis. Now consider the following alternative scenarios: Scenario 1: The current tariff rate is $5 a. If there are no free trade arrangements, from which country’s producers will US consumers buy the product? (1 point) b. If we now signed NAFTA, from which country’s producers will US consumers buy the product? (1 point) c. Are US consumers and the country as a whole better off or worse off with NAFTA and why? (1 point) Scenario 2: The current tariff rate is $3 d. If there are no free trade agreements, from which country’s producers will US consumers buy the product? (1 point) e. If we now signed NAFTA, from which country’s producers will US consumers buy the product? (1 point)f. Are US consumers and the country as a whole better off or worse off with NAFTA and why? (1 points) g. What is the difference in the two scenarios? What does that tell you about the impact of free trade agreements? (2 points)
Answer and Explanation:
As per the data given in the question,
For Situation 1 :
a) Since US products will not have duty, Consumer will purchase from US>
b) If there is NAFTA, now the tax on China is higher at $5 which make them inappropriate, therefore consumer would like to purchase from Mexico at $6.
c) As country would be misleadingly separating against different items which will cause to increase wastefulness, So US consumers and the country as a whole is not happy with NAFTA.
For Situation 2 :
d) Consumers would like to purchase from China even with $3 duty cost is less, and total cost with tax is $7.
e) Consumer will purchase form Mexico as there is no levy and they can supply for $6.
f) Free trade agreements are critical to guarantee that exchange takes place absent a lot of taxes, it is necessary to advance directly commerce with NAFTA area for fate of US, Mexico would purchase measures of merchandise from US therefore this agreement should be invited for sure.