A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29, and rises to $32 before the expiration date. What is the maximum profit per unit to the speculator who owned the put option assuming he or she exercises the option at the ideal time

Answers

Answer 1

Answer: - $3

Explanation:

We should note that the holder of a put will gain when the share price is below the exercise price.

Since the gain with regards to the question is ($30 - $29) = $1 and the premium paid is 4, then the maximum profit per unit will be:

= Gain - Premium paid

= $1 - $4

= -$3.


Related Questions

Suppose your salary in 2016 is $30,000. Assuming an annual inflation rate of 3%, what salary do you need to earn in 2022 in order to have the same purchasing power

Answers

Answer:

$35821.5

Explanation:

Using compound formula

A= P( 1+ r/ n)^ nt

A= amount

t= time period

n=Number of years

2016----2022= 6years

Substitute for the values we have

A= $30,000[ 1+ (3/100)/1]^ (6)

A= $35821.5

Hence, salary you need to earn in 2022 in order to have the same purchasing power is $35821.5

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: Administration$80,000 Maintenance$100,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:Multiple Choice$110,000.$55,000.$103,000.$48,000.$45,000.

Answers

Answer:

$77,000

Explanation:

Calculation to determine what The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:

Administration=$80,000×[100/(150 + 100)] Administration=$32,000

Maintenance=$100,000×[36,000/(44,000 + 36,000)]

Maintenance=$45,000

Total$ 77,000

($32,000+$45,000)

Therefore The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:$77,000

On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $420,000 to its supplier using a 12-month, 12% note.
Required:
1. The loan of $420,000 and acceptance of the note receivable on April 1, 2021
2. The adjustment for accrued interest on December 31, 2021
3. Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation.

Answers

Answer:

1.

April 1, 2021

Note Receivable               $420000 Dr

         Cash                                 $420000 Cr

2.

December 31, 2021

Interest Receivable           $37800 Dr

       Interest Revenue            $37800 Cr

3.

March 31, 2022

Interest Receivable           $12600 Dr

       Interest Revenue            $12600 Cr

April 1, 2022

Cash                                      $470400 Dr

    Note Receivable                         $420000 Cr

    Interest Receivable                     $50400 Cr

Explanation:

1.

The issuance of notes creates an asset in the books of Shoemaker and the note receivable is debited by the amount of the loan. In exchange, cash is paid out as loan and thus it is credited.

2.

Following accrual principle, the interest revenue related to year 2021, is recorded on 31 December 2021 and a receivable is created against it as the interest revenue has not been received on 31 December 2021. The amount of interest revenue will be,

Interest Revenue - 31 December 2021 = 420000 * 12%  * 9/12 = $37800

The loan was issued on 1 April and 9 months interest has been earned till 31 December 2021.

3.

On 30 March 2022, the remaining three months interest revenue will be recorded against a receivable. The amount will be ,

Interest Revenue - March 2022 = 420000 * 12% * 3/12 = $12600

On 1 April, cash will be received for 420000 Principal and  50400 (37800 + 12600) (37800 + 12600 interest and it will be recorded as debit to cash for 470400 and credit to notes receivable for 420000 and interest receivable to 50400.

What happens to the equilibrium price and quantity in the market for orange juice in Florida if a hurricane causes a seasonal orange shortage and the price of apple juice falls substantially. Select the correct answer below: the equilibrium price of orange juice will fall the equilibrium price of orange juice will rise the equilibrium quantity will rise the equilibrium quantity will fall

Answers

Answer:

equilibrium quantity would fall

Explanation:

orange is an input for making orange juice

As a result of the hurricane, orange farms would be destroyed. there would be less orange to make orange juice. this would shift the supply curve for orange juice to the left. as a result, equilibrium price would rise and equilibrium quantity would fall

I am assuming that apple juice is a substitute for orange juice. A decrease in the price of apple juice would lead to an increase in the demand for apple juice and decrease the demand for orange juice. the demand curve for orange juice would shift inwards. Equilibrium price and quantity would fall

taking these two effects together, equilibrium quantity would  fall. there would be an indeterminate effect on equilibrium price

Whispering Winds Corp. just began business and made the following four inventory purchases in June: June 1 147 units $882 June 10 196 units 1372 June 15 196 units 1568 June 28 147 units 1323 $5145 A physical count of merchandise inventory on June 30 reveals that there are 196 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

Answers

Answer:

the ending inventory using the LIFO method is $1,225

Explanation:

The computation of the value of the inventory using the LIFO method is shown below;

Since there are 196 closing units

So,

= 146 units × $6 + 49 units × $7

= $882 +  $343

= $1,225

The $6 come from

= $882 ÷ 147 units

And, $7 comes from

= $1,372 ÷ 196 units

Hence, the ending inventory using the LIFO method is $1,225

The Wheat Company has used the LIFO method for inventory valuation since the start of business 15 years ago. The current year ending inventory is $375,000. If the FIFO method of inventory had been used, the inventory would be $450,000. If Wheat Company had used the FIFO inventory method, pre-tax income would have been: Multiple Choice

Answers

Answer: $75,000 higher over the 15 year period.

Explanation:

Current year ending inventory using LIFO = $375,000

Current year ending inventory assuming FIFO was used = $450,000

If Wheat Company had used the FIFO inventory method, there will have been a difference of ($450,000 - $375,000) = $75,000 in pre-tax income over the 15 years period.

Therefore, if Wheat Company had used the FIFO inventory method, pre-tax income would have been $75,000 higher over the 15 year period.

An advantage of organization in the u.s. that compete globally is

Answers

Answer:

An advantage of organization in the U.S. that compete globally is:

a. Poor quality of Japanese companies

b. Strong entrepreneurial spirit

c. Government regulations

d. Protectionist sentiment

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Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A. Employees have to be reprimanded for bad ideas. B. Employees are self-motivated in their work. C. Employees need constant supervision. D. Employees are always ready to leave the company.

Answers

Answer:

b

Explanation:

Employees are self-motivated in their work.

Old Economy Traders opened an account to short-sell 1,300 shares of Internet Dreams at $46 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $46 to $59, and the stock has paid a dividend of $3.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)

Answers

Answer: $8450

Explanation:

First, we need to calculate the total initial asset which will be the value of shares sold and the margin which will be:

= (1300 × $46) + (50% × 1300 × $46)

= $59800 + $29900

= $89700

We will then calculate total liability which will be:

= (1300 × $59) + (1300 × $3.50)

= $76700 + $4550

= $81250

The remaining margin will then be:

= $89700 - $81250

= $8450

Please help me to solve this question.​

Answers

Answer:

the reproduction in which fertilization takes place is called sexual reproduction.

ii . multiple fission

hope it is helpful to you

Ayayai Corp. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 280 $5 $1400 Purchase, 1/15/2022 140 ..5 700 Purchase, 1/28/2022 140 ..5 700 An end of the month (1/31/2022) inventory showed that 230 units were on hand. How many units did the company sell in January 2022

Answers

Answer: 330 units

Explanation:

Units sold in January = Units available for sale - Ending inventory

Units available for sale = Beginning inventory + Purchases

= 280 + 140 + 140

= 560 units

Units sold = 560 - 230

= 330 units

The dollar-value LIFO method was adopted by Bramble Corp. on January 1, 2020. Its inventory on that date was $298,300. On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. Your Answer Correct Answer Correct answer iconYour answer is correct. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method. Inventory 12/31/20 under dollar-value LIFO method $ 250000 eTextbook and Media Solution

Answers

Answer:

8642$ i think

Explanation:

Answer:

On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level on January 1, 2020, was 100.

Explanation:

The-dollar-value LIFO method was adopted by Bramble Corp. on January 1, 2020. Its inventory on that date was $298,300. On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level on January 1, 2020, was 100, and the price level on December 31, 2020, was correct.

Some advertising campaigns aim to change consumer attitudes about a product. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms. Which of the following is not a public relations tool? a. News release. b. Publicity. c. Free samples d. Press conference e. Feature article Many trade sales promotion methods, such as temporary price reductions, encourage the marketing channel to "overload" the channel with inventory that will not be sold soon. Overloading can increase sales in the short run but hurt sales in the longer term. Which trade sales promotion method can fight channel overloading?

Answers

Answer:

Advertising Campaigns

1. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms.

persuasive

2. Not a public relations tool:

e. Feature article

3. The trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, wholesalers, or other business buyers.

Explanation:

Feature articles are in-depth descriptions and analyses of a place, a person, an idea, or an organization.  Generally, feature articles concentrate on topical events, people, or issues and are written by experts to provide background information on newsworthy topics with the writer's personal slant or experience.

When a firm is trying to change attitudes, advertising campaign objectives are stated in persuasive terms.

Some advertising campaigns aim to change consumer attitudes about a product. It should be noted that a feature article is not a public relations tool.

In conclusion, the trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, and wholesalers.

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g Jesse Co. reports a taxable and pretax financial loss of $800,000 for 2019. Jesse's taxable and pretax financial income and tax rates for the last two years were: 2017 $800,000 20% 2018 800,000 35% The amount that Jesse should report as an income tax refund receivable in 2019, assuming that it uses the carryback provisions and that the tax rate is 40% in 2019, is

Answers

Answer:

$160,000

Explanation:

Calculation to determine The amount that Jesse should report as an income tax refund receivable in 2019

Using this formula

2019 income tax refund receivable=Taxable and pretax financial income * Tax rate

Let plug in the formula

2019 income tax refund receivable =($800,000 × 20%)

2019 income tax refund receivable= $160,000

Therefore The amount that Jesse should report as an income tax refund receivable in 2019 is $160,000

The following data pertain to Frontier Enterprises:
Variable manufacturing cost $ 70
Variable selling and administrative cost 20
Applied fixed manufacturing cost 40
Allocated fixed selling and administrative cost 15
What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 110%?
A. $84.
B. $147
C. $210.
D. $231
E. Some other amount.

Answers

Answer:

D. $231.

Explanation:

With regards to the above, first we need to compute the total manufacturing cost.

Total manufacturing cost = Variable manufacturing cost + Applied fixed manufacturing cost

= $70 + $40

= $110

Then,

= $110 + ($110 × 1.1)

= $110 + $121

= $231

Therefore , the company will charge $231 if cost- plus pricing based is used.

Identify a product you use every day. Assume you are the marketer of the product and want to convey the ways your product differs from competing products in the marketplace. Create a differentiation strategy to promote your product and create a competitive advantage

Answers

Answer:

Being a marketer for a product like Nike shoe, here, Nike shoe is different from other shoes as this shoe has unique brand value include swoosh logo, design of the shoe that could be customized, highly comfortable for various.

Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $475,000 Raw materials (all direct) requisitioned for use in production $476,000 Direct labor cost $640,000 Manufacturing overhead: Indirect labor cost $174,000 Other manufacturing overhead costs incurred $498,000 Cost of goods manufactured $1,469,000 Cost of goods sold (unadjusted) $1,430,000 6. The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Answers

Answer:

It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.

Date                 Account Title                                          Debit                Credit

XX-XX-XXX     Finished Goods                                $1,469,000

                        Work in Process                                                       $1,469,000

Olympic Sports has two issues of debt outstanding. One is a 6% coupon bond with a face value of $28 million, a maturity of 15 years, and a yield to maturity of 7%. The coupons are paid annually. The other bond issue has a maturity of 20 years, with coupons also paid annually, and a coupon rate of 7%. The face value of the issue is $33 million, and the issue sells for 96% of par value. The firm's tax rate is 40%.

Requied:
a. What is the before-tax cost of debt for Olympic?
b. What is Olympic's after-tax cost of debt?

Answers

Answer:

The responses to these question can be defined as follows:

Explanation:

Given:

                          [tex]Bond \ A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Bond \ B\\\\[/tex]

[tex]Face \ Value \ \ \ \ \ \ \ \ \ \$1,000 \ \ \ \ \ \ \ \ \ \$ 1,000\\\\ Rate \ of \ Coupon \ \ \ \ \ \ \ \ \ 6\% \ \ \ \ \ \ \ \ \ 7\% \\\\Maturity \ in \ Years \ \ \ \ \ \ \ \ \ 15 \ \ \ \ \ \ \ \ \ 20 \\\\Selling - Price \ \ \ \ \ \ \ \ \ -\$ 908.92 \ \ \ \ \ \ \ \ \ \$960 \\\\ Yield \ To \ Maturity \ \ \ \ \ \ \ \ \ 7\% \ \ \ \ \ \ \ \ \ 7.39\% \\\\Total\ Outstanding \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \$ 3,30,00,000\\\\[/tex]

[tex]Rate\ Tax \ \ \ \ \ \ \ \ \ 40\% \\\\selling\ Price \ \ \ \ \ \ \ \ \ PV(7\% , 15 ,60, 1000)\\\\Yield \ To\ Maturity \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ RATE(20, 70, -960,1000)[/tex]

For point a:

Before tax   [tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\[/tex][tex]Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 7 \ \ \ \ \ \ \ \ \ \ 3.11831\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 7.39 \ \ \ \ \ \ \ \ \ \ 4.097955\\\\[/tex]

                                               [tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7.216266\\\\[/tex]

For point b:

After tax

[tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 4.2 \ \ \ \ \ \ \ \ \ \ 1.870986\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 4.434 \ \ \ \ \ \ \ \ \ \ 2.458773\\\\[/tex]                                             [tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4.329759\\\\[/tex]

So,  

In a, answer is  [tex]7.22\%[/tex]

In b, answer is  [tex]4.33\%[/tex]

Required: Determine the specific eight- or nine-digit Codification citation (XXX-XX-XX-XX) that describes the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.

Answers

Answer:

The codes for the Financial Accounting Standards Board (FASB) Accounting Standards Codification can be found on the FASB website.

The format is  (XXX-XX-XX-XX).

The first XXX is the Topic.

The first XX is the Subtopic

The second XX is the Section

The third XX or X is the Paragraph.

The Codes for the following are:

1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 450-20-50-3

Topic ⇒ Contingencies

Subtopic ⇒ Loss Contingencies

Section ⇒ Disclosure

2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.  470-10-45-14

Topic ⇒ Debt

Subtopic ⇒ Overall

Section ⇒ Other Presentation Matters

3. Accounting for the revenue from separately priced extended warranty contracts. 605-20-25-3

Topic ⇒ Revenue Recognition

Subtopic ⇒ Services

Section ⇒ Recognition

4. The criteria to determine if an employer must accrue a liability for vacation pay. 710-10-25-1.

Topic ⇒ Compensation - General

Subtopic ⇒ General

Section ⇒ Recognition

urendra’s personal residence originally cost $340,000 (ignoring the value of the land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for: Loss. Depreciation. Gain. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 and then purchased another house for $320,000 to hold as rental property? Explain. Summarize your answer to this problem in an e-mail to your instructor.

Answers

Answer:

a. Loss  

When a property is converted from being for personal use to being for business use, the basis for loss is the lower of the basis after it is adjusted for its new purpose or; the fair market value.  

Adjusted = $340,000  

Fair market value = $320,000  

Loss basis will therefore be the lower value of $320,000

b. Depreciation:  

Again, when a situation arises that a personal use property is converted to business, the depreciation is the same as the loss basis. This is the same as the loss basis because the residence was converted from personal use to business use.  

= $320,000

c. Gain  

= Adjusted basis of the property  

= $340,000

d. No.

Capital loss on personal property sales is recognized for deduction so Surendra would have incurred a loss of $20,000 had he sold the residence. He would not have obtained better tax results if he had sold the residence.  

The carrying value of bonds at maturity always equals: Multiple Choice the amount of discount or premium. the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. the par value of the bond. the amount of cash originally received in exchange for the bonds. the amount in excess of par value.

Answers

Answer: the par value of the bond

Explanation:

The carrying value of bonds at maturity will always be equal to the par value of the bond. The carrying value of a bond is simply refered to as the bond's face value or par value plus the premiums taht are unamortized.

We should note that during the time of maturity of the bond, there'll have been an ammortization of the discounts or premiums, while the bond's par value will be left.

The carrying value of bonds at maturity always equals to the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. Thus, option (b) is correct.

At maturity, bonds' carrying values will always be the same as their par values. The face value or par value of a bond plus any unamortized premiums are simply referred to as the bond's carrying value.

To put it another way, it is the total of a bond's face value, any unamortized premiums, and any unamortized discounts, if any. The par value, interest rate, and remaining maturity period of the bond must all be known before calculating the carrying value using the effective interest rate technique.

Therefore, option (b) is correct.

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Suppose it is announced that industry analysts are predicting that decreased oil supplies from one of the exporter countries will cause gasoline prices to rise, beginning next month. In the current week, the announcement would: Shift the supply of gasoline right Shift the demand for gasoline right Shift the demand for gasoline left no effect on the demand or supply of gasoline

Answers

Answer: Shift the demand for gasoline right

Explanation:

If it is announced that there'll be an increase in the prices of gasoline starting from the following month, this will bring about a situation whereby people will start rushing to buy gasoline before the following month when there will be an increase in its price.

In such case, there'll be a shift in the demand for gasoline to the right as there'll be an increase in the demand for gasoline.

Determining Whether to Capitalize or Expense For each of the following items, indicate whether the cost should be capitalized (C) or expensed (E) immediately: a. Paid $1,200 for routine maintenance of machinery b. Paid $5,400 to rent equipment for two years c. Paid $2,000 to equip the production line with new instruments that measure quality d. Paid $20,000 to repair the roof on the building e. Paid $1,600 to refurbish a machine, thereby extending its useful life f. Purchased a patent for $5,000

Answers

Answer:

To Capitalize or Expense

a. Expense

b. Expense $2,700 Capitalize $2,700

c. Capitalize

d. Expense

e. Capitalize

f. Capitalize

Explanation:

1) Data and Analysis:

a. Maintenance Expense $1,200 Cash $1,200

b. Rent Expense $2,700 Prepaid Rent $2,700 Cash $5,400

c. Equipment $2,000 Cash $2,000

d. Building Repair Expense $20,000 Cash $20,000

e. Equipment Extension $1,600 Cash $1,600

f. Patent $5,000 Cash $5,000

2) All costs incurred for a period are expensed in the period in which the resources are consumed.  If the resources will not be consumed in a period, the costs are capitalized.  Such costs are then expensed periodically through depreciation (for tangible assets), amortization (for intangible assets), or depletion (for acquired natural resources).

On January 1 of this year, Nowell Company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 6.0%.
1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?

Answers

Answer:

1. What was the issue price on January 1 of this year?

since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000

2. What amount of interest expense should be recorded on June 30 and December 31 of this year?

interest expense = coupon rate = $7,200 (for both June 30 and December 31)

3. What amount of cash is owed to investors on June 30 and December 31 of this year?

Face value = $240,000

4. What is the book value of the bonds on December 31 of this year, December 31 of next year?

Face value = $240,000

The issue price is $240,000, interest expenses will be $7,200 each time. the company owes the investor the interest and the book value is   $240,000.

What is face value?

Face value is the original cost with which the shares are shown/ registered on the stock exchange. It is the amount that the company has to pay to the holder of the bonds in maturity, it is the par value for bonds.

1. The issue price of 6% coupon rate bonds is $240,000.

2. The amount of interest expense that should be recorded on June 30 and December 31

$240,000 X 6%=$14,400annually

but it is paid semi-annually so=$14,400/2= $7,200 for each time

3. The amount owed to the investor by the company will be the interest amount i.e $7,200 each on June 30 and December 31.

4. The book value of the bond will be the face value for which it was issued i.e  $240,000.

Therefore the above statements aptly explain the facts.

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Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings.

Employee Name Cumulative Pay Before Current Earnings Current Gross Pay
Jordahl, Stephanie $6,600 $1,190
Keesling, Emily 6,150 1,070
Palmer, Stefan 55,200 2,410
Soltis, Robin 54,300 2,280
Stout, Hannah 29,050 2,030
Xia, Xu 116,630 2,850

Required:
a. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
b. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

Answers

Explanation:

Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20-, is as follows: Social Security tax is 6.2% on the first $110,100 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings. Taxable Earnings Unemployment Social Compensation Security Employee Name Carlos, Peggy Sanchez, Carmela Delaney, Roger Weitz Alana Dunhill, Craig Bella, Stephen Cumulative Pay Current Before Current Gross Earnings Pay $ 84,240 $2,350 81,900 2,100 109,800 3,320 6,300 1,100 6,800 1,000 42,330 1,850 1. Calculate the number of taxable earnings for unemployment and Social Security taxes. Cumulative Pay Current Taxable Earnings Before Current Gross Unemployment Social Employee Name Earnings Pay Compensation Security Carlos, Peggy $ 84,240 $2,350 Sanchez, Carmela 81,900 2,100 Delaney, Roger 109,800 3,320 Weita, Alana 6,300 1,100 Dunhill, Craig 6.800 Bella, Stephen 42,330 1,050 1.000 2. Prepare the journal entry to record the employer's payroll taxes as of September 28, 20, If required, round your answers to the nearest cent. If an amount has not required an entry leave it blank

Patterson and Clay Companies both use cost-plus pricing formulas and arrived at a selling price of $1,000 for the same product. Patterson uses absorption manufacturing cost as the basis for computing its dollar markup whereas Clay uses total cost. Which of the following choices correctly denotes the company that would have (1) the higher cost basis for deriving its dollar markup and (2) the higher markup percentage?
Cost Basis Patterson Patterson Clay Clay More information is needed to judge Markup Percentage Patterson Clay Patterson Clay More information is needed to judge
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E

Answers

Answer:

Patterson and Clay Companies

1. Higher cost basis for marking up is:

= Clay Company

2. Higher markup percentage is:

= Patterson Company

Explanation:

a) Data and Analysis:

Costing formulas:

Patterson:

Absorption manufacturing cost

Markup = Higher markup rate

Selling price $1,000

Clay:

Total cost = Higher cost basis for marking up

Markup

Selling price $1,000

b) Total cost is higher than total manufacturing costs.  It includes more than the total manufacturing costs.  Absorption manufacturing costs only include the variable manufacturing costs and fixed manufacturing overhead costs.  Total costs include all the absorption costs and other selling, administrative, and distribution costs.

Click this link to view O*NET’s Work Context section for Human Resources Managers. Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom. According to O*NET, what are some common work contexts for Human Resources Managers? Check all that apply.

cramped work space, awkward positions

freedom to make decisions

electronic mail and telephone

sound, noise levels are distracting

extremely bright or inadequate lighting

face-to-face discussions

Answers

Answer:

b c f

Explanation:

Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant, under the following situations. a. The economy is surprisingly strong, leading to an increase in the amount of checkable deposits. b. Banks expect an unusually large increase in with-drawals from checking deposit accounts in the future. c. The Fed raises the target federal funds rate. d. The Fed raises the interest rate on reserves above the current equilibrium federal funds rate. e. The Fed reduces reserve requirements. f. The Fed reduces reserve requirements and then off-sets this action by conducting an open market sale of securities.

Answers

Answer:

The federal fund rate will increase, non borrowed reserves will decrease and no change in borrowed reserves.

Explanation:

Federal fund rate is an interest rate which banks pay off each night on depository funds. This rate can be above the discount rate because banks prefer to pay higher market rate than to borrow from Fed. When the fed raises target federal fund than federal fund rate will increase causing a decline in no borrowed reserves.

Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred.

Assume that FedEx made extensive repairs on an existing building and added a new wing. The building is a garage and repair facility for delivery trucks that serve the Denver area. The existing building originally cost $720,000, and by the end of 2010 (10 years), it was half depreciated on the basis of a 20-year estimated useful life and no residual value. Assume straight-line depreciation was used. During 2011, the following expenditures related to the building were made:

a. Ordinary repairs and maintenance expenditures for the year, $7,000 cash.
b. Extensive and major repairs to the roof of the building, $122,000 cash. These repairs were completed on December 31, 2011.
c. The new wing was completed on December 31, 2011, at a cash cost of $230,000.

Required:
Apply the policies of FedEx.

Answers

Answer:

FedEx

Applying the policies of FedEx:

a and b. Total repairs and maintenance expenses to be charged to the income statement = $129,000 ($7,000 + $122,000).

c. The building extension cost of $230,000 will be capitalized.

The Building will now have a total cost value of $950,000 Accumulated Depreciation of $396,000.

Therefore, the net book value of building at the end of December 31, 2011 will be $554,000 ($950,000 - $396,000).

Explanation:

a) Data and Analysis:

Cost of existing building = $720,000

Book value of existing building = $360,000 ($720,000 * 10/20)

Transactions and adjustments during 2011:

a. Repairs and Maintenance Expenses $7,000 Cash $7,000

b. Repairs and Maintenance Expenses $122,000 Cash $122,000

c. Building extension $230,000 Cash $230,000

d. Depreciation Expense on existing building = $36,000 ($720,000/20).

e. Accumulated Depreciation on Building, Dec. 31, 2011 = $396,000 ($360,000 + $36,000)

How and why would the accounting profession use the results of behavioural research in accounting

Answers

Answer:

Behavioral accounting is a subset of accounting that, in addition to accounting expertise, is concerned with behavior. It is concerned with people's attitudes and behaviors when confronted with an accounting phenomenon, which defines the actions that they will exhibit in decisionmaking. This accounting specialization addresses issues such as human informationprocessing activity, judgement accuracy, accounting problems caused by accounting information users and suppliers, and accounting information users' and producers' decisionmaking skills.

Behavioral psychology seeks to understand how people make choices, communicate with others, and affect economies and societies. The impact of accounting knowledge on conduct, administrative management (budget engagement, nonfinancial interventions, leadership, and balanced scorecard), auditing (auditorclient negotiations, auditor's judgement, and decisionmaking), and ethics (ethical decisionmaking, ethical orientation, and rationalizations for unethical behavior) are all included under the Behavioral accounting definition.

The accounting profession use the results of behavioural research in accounting so that they can understand the behaviour of different entities like a consumer or a retailer and use that in the accounting so that it can help in making a better conclusion.

What is research ?

Research is a defined as the whole process of making hypothesis, collection of data; and analysis and interpretation of that data/information, in accordance with suitable methodologies and drawing the conclusion.

Behavioral research tries to find out how individuals make decisions, interact and influence other individuals, organizations, markets, and society. Behavioral research about individuals like consumers is used in accounting to  analyze and study about the outcome or result like profits.

So we can say that behavioural research plays an important role in analyzing the data and for drawing the conclusion in accounting.

Learn more about research here:

https://brainly.com/question/29782299

#SPJ2

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