During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue?

a. Pre-Tax Income
b. Income Tax Expense
c. Taxable Income
d. Income Tax Payable
e. Deferred Tax Liabilities

Answers

Answer 1

Answer:

a. Pre-Tax Income

Explanation:

Given that

The interest revenue earned is $10,000

So in the case when there is the municipal bond revenue so the pre tax income should be increased as there is an interest revenue so only this account should be increased

Therefore the correct option is a

Hence, the other options would be wrong


Related Questions

Synergy Inc. has reported the following operating information for one of its divisions: Sales revenue $150,000 Operating income $30,000 Operating assets $375,000 Calculate the division's margin, turnover, and ROI.

Answers

Answer:

Division's margin = 20%

Turnover = 40%

Return On Investment = 8%

Explanation:

Given:

Sales revenue = $150,000

Operating income = $30,000

Operating assets = $375,000

Find:

Division's margin

Turnover

Return On Investment

Computation:

Division's margin = [Operating income / Sales revenue]100

Division's margin = [30,000 / 150,000]100

Division's margin = 20%

Turnover = [Sales revenue / Operating assets]100

Turnover = [150,000 / 375,000]100

Turnover = 40%

Return On Investment = Division's margin x Turnover

Return On Investment = 20% x 40%

Return On Investment = 8%

What type of data do traditional AISs generate as part of processing transactions and business events

Answers

Traditional AISs generate unstructured data as part of processing transactions and business events.

How will you use the cloud to stay organized

Answers

I’m so confused what your talking about I’m sorry

Answer:

Explanation:

Develop a Folder Naming System. Decluttering your cloud space will mean developing a file system and then putting everything in its proper place. ...

name the institution that investigates anti-competitive behaviour on companies in south africa​

Answers

Explanation:

the competition committee of southafrica, set up in the year 1989 by the southafrica government under the competition act to empower to investigate, control and restrict business, abuse of dominant positions and merges in order to achieve equity and efficiency in the southafrica economy.

Owner Shan Lois considering franchising her Noodles for a restaurant concept. She believes people will pay $ 10.50 for a large bowl of noodles. Variable costs are $ 6.30 per bowl.Lo estimates monthly fixed costs for a franchise at $10,500.Requirements1. Use the contribution margin ratio approach to find a​franchise's breakeven sales in dollars.2. Lo believes most locations could generate $63,000 in monthly sales. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of 13,500​?

Answers

Answer:

Selling price = $10.50

Variable cost = $6.30

Fixed cost = $10,500

Contribution margin = Selling price - Variable cost = $10.50 - $6.30 = $4.20

Contribution margin ratio = Contribution margin/Selling price = $4.20/$10.50 =  0.4 = 40%

1. Break even sales = Fixed cost / Contribution margin ratio

Break even sales = $10,500 / 40%

Break even sales = $10,500 / 0.40

Break even sales = $26,250

2. Break even sales = (Fixed cost + Operating income) / Contribution margin ratio

Break even sales = ($10,500 + $13,500) / 40%

Break even sales = $24,000 / 0.40

Break even sales = $60,000

Lo believes most locations could generate $63,000 in monthly sales.

Observation: The monthly sales is greater than the breakeven, so the monthly sales is the best choice.

The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the cumulative amount of a) Net Income (Loss), b) Total Assets, c) Total Liabilities, and d) Total Equity that would be reported on the financial statements immediately after each transaction is recorded.

Answers

Answer:

True

Explanation:

Financial statements reports the impact of all business transactions that occur. These transaction are recorded when they incur and then any necessary adjustment is made in order to reflect the true expense or liability. the adjusting entries are passed to correctly record the transaction.

The First National Bank has total deposits of $675,000 and excess reserves of $22,300. If the required reserve ratio is 9 percent, the First National Bank has total reserves of:

Answers

Answer: $83050

Explanation:

Based on the information given in the question, the total reserves of First National Bank will be given as follows:

Total deposit = $675000

The Required reserve ratio will be:

= 675000 × 9%

= 675000 × 9/100

= $60750

Since the bank has excess reserves of $22,300, then the total reserve will be:

= $60750 + $22300

= $83050

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $25.25 per share; its last dividend was $1.50; and it will pay a $1.62 dividend at the end of the current year.
1. Using the DCF approach, what is its cost of common equity?
2. If the firm's beta is 0.80, the risk-free rate is 3%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach?
3. If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?
4. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?

Answers

Answer:

Find my detailed explanations and answers below

Explanation:

1.

Based on the dividend discount model, the share price is the present value of the expected dividend as shown by the formula below:

share price=expected dividend/(cost of equity-growth rate)

share price=$25.25

expected dividend=$1.62

cost of equity=unknown(let us assume it is K)

growth rate=8%

$25.25=$1.62/K-8%

$25.25*(K-8%)=$1.62

K-8%=($1.62/$25.25)

K=($1.62/$25.25)+8%

K=14.42%

2.

Using the Capital Asset Pricing Model, the formula for cost of equity is as shown thus:

cost of equity=risk-free rate+beta*(market return-risk-free rate)

risk-free rate=3%

beta=0.80

,market return=14%

cost of equity=3%+0.80*(14%-3%)

cost of equity=11.80%

3.

cost of equity=cost of debt+risk premium

cost of debt=12%

risk premium=market return-risk-free rate=14%-3%=11%

cost of equity=12%+11%=23%

If all of the figures are of equal confidence, our cost of equity should be the average of the three

cost of equity=(14.42%+11.80%+23%)/3=16.41%

On July 5, a stock index futures contract was at 394.85. The index was at 392.54, the risk free rate was 2.83 percent, the dividend yield was 2.08 percent, and the contract expired on September 20. Determine whether an arbitrage opportunity was available and explain what transactions were executed.

Answers

Solution :

Given :

The stock index contracts at = $ 394.85

Index = $ 392.54

Risk fee rate =  2.83 %

Dividend = 2.08 %

Now take long position on the index at $ 392.54 per share

After 75 days, they have to pay $ 392.54 + 392.54 x 2.83 x 75/365

                                                   = $ 394.823

Take s short position on the stock index futures contract on $ 394.85 per share.

Dividends received = $ 392.54 x 2.08%

                                 = $ 8.164

Therefore, there is an  arbitrage opportunity.

Country Alpha has 15 thousand acres of land and 45 thousand laborers, whereas Country Beta has 100 thousand acres of land and 200 thousand laborers. These countries produce a labor-intensive good A, and a land-intensive good B.

Based on the information given, we can conclude that:

If trade opens up between Country Alpha and Country Beta, according to the Heckscher-Ohlin model, Country Beta will export _____ and import _____.
a. both the goods; neither good
b. good B; good A
c. good A; good B
d. neither good; both of the goods

Answers

Answer: b. good B; good A

Explanation:

According to the Heckscher-Ohlin model, a country should export the good that is has a relative abundance in and import the good it has relative scarcity in.

Find out labor to land ratio of both countries:

Country Alpha = 45 / 15 = 3

Country Beta = 200 / 100 = 2

Country Alpha has 3 labor units per acre

Country Beta has 2 labor units per acre

Country Alpha therefore has more labor abundance and should export the labor intensive good which is good A which means Country B will import A.

Country Beta should export more land intensive good which is good B.

When actions by individuals in a organization are directed toward the goal of furthering their own self-interests, it is termed as

Answers

Answer:

Organizational politics.

Explanation:

An interest group can be defined as a group of people sharing common aims, ideas and concerns, which seeks to influence government or a public policy.

This ultimately implies that, the interest groups consists of individuals who are only concerned about influencing public policy of the government on the basis of a particular common aim and interest.

Similarly, when actions by individuals in a organization are directed toward the goal of furthering their own self-interests such as being promoted, traveling to get estacodes, training, courses, etc., it is generally termed as organizational politics. Thus, you will see such employees (individuals) getting closer to top the executive management and patronizing them, in order to be in their good books.

Jill starts at a salary of $30,000 per year and receives benefits that cost the company 50% of her salary. She gets 12 weeks of training, 2 weeks of vacation, and 10 paid holidays. Using 52 weeks per year, 40 hours per week, 8 hours per day, and not counting the trainer's cost, how much does it cost the company for every DAY in the first year that she is available to help a customer

Answers

Answer:

$250 per day

Explanation:

Calculation to determine how much does it cost the company for every DAY in the first year that she is available to help a customer

Cost =(30,000 + 15,000)*[(52 weeks- 2 weeks - 12 weeks)x 5 days- 10 day holidays]

Cost = $45,000 per year*(38 weeks×5 days- 10 day holidays)

Cost = $45,000 per year*180 days

Cost = $250 per day

Therefore how much does it cost the company for every DAY in the first year that she is available to help a customer is $250 per day

Nancy, age 67, plans to retire in six months. She has $200,000 in a savings account. She would like to receive lifetime monthly income which is guaranteed. A. Fixed life annuity B. Variable annuity C. Equity-indexed annuity

Answers

C. Sorry if I got it wrong have a good day

The Andrews company currently has the following balances in their equity accounts: Common Stock $59,934 Retained earnings $32,340 Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year

Answers

Answer:

the ending balance of the retained earnings is $62,640

Explanation:

The computation of the ending balance of the retained earnings is shown below:

= Opening retained earning + net profit - dividends paid

= $32,340 + $46,300 - $16,000

= $62,640

hence, the ending balance of the retained earnings is $62,640

The above formula should be used

Recall that since stocks have really long lives, in the video we first imagined owning a stock for only one period. In this simple, yet powerful scenario, today's stock price is the PV of next year's dividend and next year's stock price.) The stock of Alydar Oil, an all-equity firm, is currently trading at $30 per share, after just having paid a $2.60 per share dividend. The market expects a dividend of $3.30 per share to be paid one year from today. If the equity cost of capital (same as discount rate for equity) is 13% for this firm, the expected ex-dividend price (the stock price after the dividend is paid next year) in one year (t = 1) should be closest to:_______.a) $32.77b) $30.60c) $33.90d) $31.30

Answers

Answer:

Option b ($30.6) is the correct option.

Explanation:

Given:

Current price,

= $30

Required rate,

= 13%

Expected dividend,

= 3.30

Now,

The expected ex-dividend will be:

= [tex]Current \ price\times (1+ Required \ rate) - Expected \ dividend[/tex]

On putting the values, we get

= [tex]30\times (1+13 \ percent)-3.30[/tex]

= [tex]30\times 1.13-3.30[/tex]

= [tex]33.9-3.30[/tex]

= [tex]30.6[/tex] ($)

The management of Milque Corp. is considering the effects of various inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the highest net income

Answers

Answer:

Milque Corp.

FIFO will provide the highest net income when the price of inventory is increasing.

Explanation:

The Generally Accepted Accounting Principles recognize four main methods to compute Cost of Goods Sold and Ending Inventory for a period.  They are:

First In, First Out (FIFO): This is based on the assumption that companies sell first the inventory that they bought first.

Last In, First Out (LIFO):  This method assumes that companies sell first the inventory that they bought last.

Weighted Average Cost (WAC): This inventory method assumes that companies average the costs of inventory and how much they sell over the period by dividing the cost of goods available for sale by the total physical inventory units.

Specific Identification: This method does not make any assumptions.  It directly identifies the product being sold and prepares costing calculations based on the specific inventory items.

Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May:

Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base
Materials handling $6,300 Number of parts 9,100 parts
Assembling $14,000 Number of parts 9,100 parts
Packaging $2,680 Number of bookshelves 910 bookshelves

Required:
Each bookshelf consists of 10 parts. The direct materials cost per bookshelf is $32.What is the total manufacturing cost per bookshelf?

Answers

Answer:

Total unitary manufacturing cost= $57.25

Explanation:

First, we need to calculate the activities rates:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 6,300/9,100= $0.69 per part

Assembling= 14,000/9,100= $1.54 per part

Packaging= 2,680/910= $2.95 per bookshelve

Each bookshelf consists of 10 parts. The direct materials cost per bookshelf is $32.

Now, we can allocate conversion costs to each unit:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Materials handling= 0.69*10= $6.9

Assembling= 1.54*10= $15.4

Packaging= 2.95*1 = $2.95

Total allocated costs per unit= $25.25

Finally, the total unitary manufacturing cost:

Total unitary manufacturing cost= 32 + 25.25

Total unitary manufacturing cost= $57.25

The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as:

Answers

Answer:

vacancy

Explanation:

Vacancy. The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as. Overage rent.

Eighteen-year ACRS nonresidential real property owned by an individual has accumulated accelerated depreciation of $975,000 at January 1, of this year. This property is sold on January 1, this same year. The original cost of the property was $975,000. The sale price was $1,000,000. The amount of the realized and recognized gain is:

Answers

Answer:

Gain= $1,000,000

Explanation:

First, we need to calculate the book value:

Book value= original cost - accumulated depreciation

Book value= 975,000 - 975,000

Book value= 0

Now, to calculate the gain or:

Gain/loss= selling price - book value

Gain= 1,000,000 - 0

Gain= $1,000,000

An example of a type II error in quality control would be:counting a student s True/False response as incorrect when it is actually correct.throwing away a perfectly good fruit.eating food that you were unaware was spoiled.using clean bed sheet for every new guest in a hotel.

Answers

Answer:

the answer is a i just took the test got 100

Explanation:

The answer is True I think

On February 1, 2020, Sheffield Corporation factored receivables with a carrying amount of $740000 to Ivanhoe Company. Ivanhoe Company assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheffield Corporation for February. Assume that Sheffield factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is

Answers

Answer:

$33,100

Explanation:

Calculation to determine what The loss to be reported is

Using this formula

Loss=(Factored receivables*finance charge)+Fair value

Let plug in the formula

Loss=($740,000 × .04)+ $3,500

Loss= $29,600+$3,500

Loss=$33,100

Therefore The loss to be reported is $33,100

Briefly explain the various environmental factors that a manager should consider in an organization.​

Answers

Answer:

pp iehrjdjs9gsiebfievdjr

Heritage, Inc., had a cost of goods sold of $44,721. At the end of the year, the accounts payable balance was $8,253. How long on average did it take the company to pay off its suppliers during the year

Answers

Answer:

Account payable days = 67.36 days

Explanation:

The payable days is the average length of time it takes a business to settle its account payable. It is calculated as thus;

Account payable days = Average account payable / Cost of goods sold × 365

Account payable = $8,253/44,721 × 365

Account payable = 67.36

Therefore, it will take Heritage about 67.36 days to settle its account payable

A price searcher
a. faces a horizontal demand curve.
b. is a seller that searches for good employees and pays them a low wage.
c. seller that searches for the best price at which to buy its nonlabor inputs.
d. is a seller that has the ability to control, to some degree, the price of the product it sells.
e. a and c

Answers

Answer:

d. is a seller that has the ability to control, to some degree, the price of the product it sells

Explanation:

A price searcher is a person who sold the products and services and impact the price of the same goods & services via number of units sold

So as per the given situation, the option d is correct as it derives that it is the seller that has the capability to control for some degree for the price of that product it sold

So, the other options would be incorrect

"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Actual overhead $32 OH allocated at 150% of DL$. Show all computations. a) Prepare a schedule of COGM & Sold using OH allocated. b) Prepare the journal entry to close OH."

Answers

Answer:

Schedule of cost of goods manufactured & Sold

Particulars                                   Amount

Direct materials used              $15

Direct labor                                 $20

Factory overhead Applied         $30

(150% of DL Cost)

Total manufacturing costs          $65

Add: Beginning WIP                    $25

Total cost of work in process     $90

Less: Ending WIP                         $10

Cost of goods manufactured    $80

Particulars                                                  Amount

Cost of goods manufactured                       $80

Add: Beginning finished goods inventory   $5

Cost of goods available for sale                 $85

Less: Ending finished goods inventory        $15

Cost of goods sold                                        $70

Suppose a stock had an initial price of $88 per share, paid a dividend of $2.10 per share during the year, and had an ending share price of $96. Compute the percentage total return.

Answers

Answer:

Percentage total return = 0.1147 or 11.47%

Explanation:

Below is the calculation for a percentage of total return:

The initial price of share = $88

Dividend amount = $2.10

Ending price of share = $96

Use the below formula to find the percentage return:

Percentage total return = [(Ending price - initial price) + Dividend amout] ÷ Initial price

Percentage total return = [(96 - 88) + 2.10] / 88

Percentage total return = 0.1147 or 11.47%

Investment X offers to pay you $4,020 per year for 12 years, whereas Investment Y offers to pay you $2,041 per year for 7 years. How much higher is the present value investment X if the discount rate is 11 percent? Round to nearest whole number.

Answers

Answer:

$16,481.68

Explanation:

Note that the present value of each yearly cash inflow can be determined using the formula provided below:

PV of cash inflow=cash inflow/(1+discount rate)^n

n is the year in which the cash inflow is expected, it is 1 for year 1 cash inflow, 2 for year 2 and so on.

PV of Investment X=$4,020/(1+11%)^1+$4,020/(1+11%)^2+$4,020/(1+11%)^3+$4,020/(1+11%)^4+$4,020/(1+11%)^5+$4,020/(1+11%)^6+$4,020/(1+11%)^7+$4,020/(1+11%)^8+$4,020/(1+11%)^9+$4,020/(1+11%)^10+$4,020/(1+11%)^11+$4,020/(1+11%)^12

PV of investment X=$26,099.27

PV of investment Y=$2,041/(1+11%)^1+$2,041/(1+11%)^2+$2,041/(1+11%)^3+$2,041/(1+11%)^4+$2,041/(1+11%)^5+$2,041/(1+11%)^6+$2,041/(1+11%)^7

PV of investment Y=$9,617.59  

the difference in PV=$26,099.27-$9,617.59

the difference in PV=$16,481.68  

At the end of a reporting period, ABC determines that its ending inventory has a cost of $300,000 and a net realizable value of $230,000. What would be the effect(s) of the adjustment to write down inventory to net realizable value?
A) Decrease total assets.
B) Decrease net income.
C) Decrease total assets and net income.
D) Increase retained earnings.

Answers

Answer:

Decrease total assets and net income.

Explanation:

There is an inventory write down because the value of inventory has decreased. The net realizable value of inventory is less than its cost.

Inventory write down involves expensing a part of the inventory asset in the current period.

As a result of the write down, inventory would decrease. Inventory is part of total assets. Thus, total assets would decrease

Also, cost would increase because of the write down and so net income would decrease.

Suppose there are two breakfast restaurants in your college town, Waffle Kingdom and Flip's Flapjacks, and they decide to operate collusively as a cartel. If both restaurants abide by the cartel's agreement, each will earn $80000 in profit. If both restaurants cheat on the cartel's agreement, both will earn $15000 in profit. If one restaurant cheats and the other abides by the agreement, the cheater will earn a profit of $120000, while the restaurant that abides will have a loss of $7500. The most profitable combined outcome for the two restaurants would be:____________

a. for both restaurants to abide by the cartel’s agreement.
b. for both restaurants to cheat on the cartel’s agreement.
c. for Waffle Kingdom to cheat on the agreement and Flip’s Flapjacks to abide by the agreement.
d. There is not a profitable outcome for both restaurants.

Answers

Answer:

a. for both restaurants to abide by the cartel’s agreement.

Explanation:

As per the given situation, the most profitable outcome i.e. combined for the two restaurants is that the both restaurant should be abide via cartel agreement as in the both cases the earnings is $80,000 so this represent the most profitable condition for these two restaurants

Hence, the option a is correct

And, the rest of the options are wrong

The wealth of the owners of a corporation is represented by​ ________.
a. earnings per share
b. share value
c. profits
d. cash flow

Answers

Answer:

The answer is B. share value

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Plot ABC on graph paper with points A(3,3), B(1,1), and C(6,1). Reflect ABC by multiplying the y-coordinates of the vertices by 1. Then use the function (x,y)(x6,y3) to translate the resulting triangle. Name the coordinates of the vertices of the result.Question 3 options:A'(-3,3), B'(-1,1), C'(-1,6)A'(-6,-3), B'(-4,-5), C'(-4,0)A'(3,-3), B'(1,-1), C'(6,-1)A'(-3,-6), B'(-5,-4), C'(0,-4)Plot ABC on graph paper with points A(10,4), B(-1,1), and C(4,2). Reflect ABC by multiplying the x-coordinates of the vertices by 1. Then use the function (x,y)(x5,y+4) to translate the resulting triangle. Name the coordinates of the vertices of the result.Question 4 options:A'(-4,-10), B'(-1,1), C'(-2,-4)A'(-8,15), B'(-5,4), C'(-6,1)A'(-10,4), B'(1,1), C'(-4,2)A'(-15,8), B'(-4,5), C'(-9,6) Does anybody know how to answer this? I need this to answer ASAP. Thank you in advance. Receptor binding motifs such as RGD have highly selective recognition for cell adhesion. Outline a strategy for incorporating a cell adhesive recognition domain to a biomaterial. Address the problems surrounding domain quantity, type, and affinity in your discussion. Which of the following proportional relationships has a higher rate Is -3 a rational number A $20 bill features which of the following on the reverse? Write the fraction 13/25 as a decimal. Show work Which angles are right? Define and describe human trafficking Which of the following would likely happen if a persons lactic acid system had difficulty breaking down glycogen in the muscles?The person would have difficulty running a marathon.The person would have difficulty sprinting in a race.The person would have difficulty swimming across a lake.The person would have difficulty cycling down a hill. Identify which statement is a characteristic of long-run for a firm.A. Time period with at least one fixed elementB. Time period with the least control over constraintsC. Time period of determining quantity and cost that yields the greatest profitD. Time period when constraints are most likely to be variable Help plz..And No links!! I repeat No links!! 2.5x + 1 = 26 help hurryyyyyyyyy!!!!?!?!??!?!?! What is the value of the expression? (14 - 10.25) 2 Name any two professional training needed in profession. What is the equation for density? NO LINKSd = V/md= m + Vd= m x Vd= m/V Two cylinders are similar. The heights of the cylinders are 15 cm and 12 cm. If the surfacearea of the smaller cylinder is 487 cm square. find the surface area of the larger cylinder. Which underlined phrase in the paragraph shows how the ownership of a car changed the way the author regarded himself If sin < 0, cos > 0, and tan < 0, what quadrant are we in? Force is measured in this unita. gramsb. m/sc. newtonsd. m/s/s