Answer: c. Cement is very heavy, and the cost of shipping is measured by weight
Explanation:
The Law of One price is that prices of a good should be the same regardless of where they are being sold in the world after accounting for currency rate conversion.
Cement might be tough to this.
Because of the high transportation cost, it would be difficult to charge the same price across nations because the of the high transport costs that needs to be employed need to be covered.
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for anonymous reports of issues by employees. The CEO is not inclined to spend the money required to set up a hotline or any other reporting mechanism. Which of the following statements is true about this situation?
A) As long as the company has an ethics officer to whom employees can report concerns, it has done everything necessary to enjoy the protections under the Federal Sentencing Guidelines.
B) With Jane as an ethics officer and adding in a code of ethics, the company has met the two required prongs for the Federal Sentencing Guidelines.
C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
D) The Federal Sentencing Guidelines protections do not apply to publicly traded companies under Dodd-Frank.
Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
Explanation:
Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.
The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.
Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
Answer:
Total cash collection Third Quarter= $2,364,000
Explanation:
Giving the following information:
40% of the sales are for cash.
70% of the credit customers pay within the quarter.
The remainder is received in the quarter following the sale.
Sales:
Q2= 88,000*25= 2,200,000
Q3= 96,000*25= 2,400,000
Selling price per unit= $25
Cash collection Third Quarter:
Sales in cash= 2,400,000*0.4= 960,000
Sales on account third quarter= (2,400,000*0.6)*0.7= 1,008,000
Sales on account second quarter= (2,200,000*0.6)*0.3= 396,000
Total cash collection Third Quarter= $2,364,000
Kyoko is a hard-working college senior. One Saturday, she decides to work nonstop until she has answered 150 practice problems for her math course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem.
Time
Total Problems Answered
8:00 AM 0
9:00 AM 60
10:00 AM 105
11:00 AM 135
Noon 150
Use the table to answer the following questions.
The marginal, or additional, benefit from Kyoko’s second hour of work, from 9:00 AM to 10:00 AM, is
45
problems.
The marginal benefit from Kyoko’s fourth hour of work, from 11:00 AM to noon, is
15
problems.
Later, the teaching assistant in Kyoko’s math course gives her some advice. “Based on past experience,” the teaching assistant says, “working on 52.5 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of pages during each hour they spend reading.
Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems, and how many should she have spent reading?
1 hour working on problems, 3 hours reading
2 hours working on problems, 2 hours reading
3 hours working on problems, 1 hour reading
4 hours working on problems, 0 hours reading
Answer:
c
Explanation:
The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses.
Time Warner, Inc.
Segment Revenues
(in millions)
Turner (cable networks and digital media) $21,700
Home Box Office (pay television) 22,200
Warner Bros. (films, television, and videos) 80,600
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner 22%
Home Box Office 47%
Warner Bros. 32%
Determine the contribution margin and contribution margin ratio. Enter amounts in millions. When required, round to the nearest whole millionth (for example, round 5,688.7 to 5,689). Round contribution margin ratio to the nearest whole percent for each segment from the information given. Enter all amounts as positive numbers. 40% 35% 25% Turner Home Box Office Warner Bros. Revenues Variable costs Contribution margin Contribution margin ratio (as a percent) b. Does your answer to (b) mean that the other segments are more profitable businesses?
Answer:
Time Warner, Inc.
a.
Turner Home Box Office Warner Bros. Total
Segment Revenues
(in millions) $21,700 $22,200 $80,600 $124,500
Variable costs 4,774 10,434 25,792 41,000
Contribution margin $16,926 $11,766 $54,808 $83,500
Contribution ratio 78% (100 - 22) 53% (100 -47) 68% (100 -32) 67%
b. Certainly, Turnover and Warner Bros. are more profitable businesses than Home Box Office in terms of total contribution margin (dollars) and contribution margin ratio.
Explanation:
a) Data and Calculations:
Segment Revenues
(in millions)
Turner (cable networks and digital media) $21,700
Home Box Office (pay television) 22,200
Warner Bros. (films, television, and videos) 80,600
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner 22%
Home Box Office 47%
Warner Bros. 32%
b) The contribution margin ratio for the three segments can easily be determined by subtracting the variable costs percentages from 100 for each segment instead of doing more computations (Contribution margin/Sales Revenue * 100). But the results are the same for either method.
What is demand curve? (Gradpoint)
Answer: The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis.
Policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J).
Answer:
There are no options included so I will give the answers as beat I can based on economic knowledge.
FISCAL policy is designed to shift the aggregate DEMAND curve by the federal government changing its SPENDING and TAXATION policies.
The government can influence the economy through fiscal policy. It does this by changing its taxation and spending policies to either increase economic growth or reduce overheating.
An EXPANSIONARY fiscal policy would attempt to speed up the economy by shifting this curve to the RIGHT. This would be accomplished by the government spending MORE than it took received in taxes. Such a policy would result in a budgetary DEFICIT .
With an expansionary policy, the government would increase it's spending such that it would be more than the taxation imposed. With the government spending more than they brought it from taxes, a budget deficit will result.
Such a policy would be employed to get the economy out of a RECESSION and fight the undesirable economic phenomenon of UNEMPLOYMENT.
When the economy is going through a recession, the economy will be facing a decline so in order to renew growth, the government would spend more to bring it out of a decline and therefore prevent or reduce unemployment.
The students have to create their assignment reports using a word processing program. Some of the questions in their assignment involve comparison between different items. Which function of a word processing program will be the most useful to present this information?
The ______ function of a word processing program will be the most useful for comparison.
Answer:
The insert table function of a word processing program will be the most useful for comparison.
Hope this helps! :)
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is:
Purchasing $40,000
Setups 37,500
Engineering 50,000
Other 40,000
Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information:
Job 1 Job 2
Direct materials $4,600 $9,340
Direct labor $1,200 $2,200
Number of purchase orders 15 20
Number of setups 3 4
Number of engineering hours 45 10
Number of machine hours 200 200
The typical bid price includes a 40 percent markup over full manufacturing cost.
Required:
1. Calculate a plantwide rate for Firenza Company based on machine hours.
2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates?
3. Which bids are more accurate?
Answer:
Firenza Company
1. Plantwide overhead rate based on machine hours = $3.35
2. Overhead Rates:
Purchasing $8 per purchase order
Setups $75 per setup
Engineering $20 per engineering hour
Other $8 per machine hour
Plantwide rate ABC rates
Bid prices
Job 1 $6,470 $12,103
Job 2 $12,210 $19,320
3. The bids based on ABC rates are more accurate.
Explanation:
a) Data and Calculations:
Budgeted overhead for the coming year is:
Purchasing $40,000
Setups 37,500
Engineering 50,000
Other 40,000
Total overhead $167,500
Expected machine hours = 50,000
Plantwide overhead rate based on machine hours = $3.35 ($167,500/50,000)
Overhead Usage / Cost Driver Overhead Rates
Purchasing $40,000 5,000 purchase orders $8/purchase order
Setups 37,500 500 setups $75/ setup
Engineering 50,000 2,500 engineering hours $20/eng. hour
Other 40,000 5,000 machine hours $8 /machine hour
Job Costing based on Plantwide rate:
Job 1 Job 2
Direct materials $4,600 $9,340
Direct labor 1,200 2,200
Overhead costs: 670 670
Total production costs $6,470 $12,210
Job Costing based on ABC rates:
Job 1 Job 2
Direct materials $4,600 $9,340
Direct labor $1,200 $2,200
Overhead costs: $2,845 $2,260
Total costs of production $8,645 $13,800
Markup (40%) $3,458 $5,520
Selling price $12,103 $19,320
Number of purchase orders $120 (15*$8) $160 (20*$8)
Number of setups 225 (3*$75) 300 (4*$75)
Number of engineering hours 900 (45*$20) 200 (10*$20)
Number of machine hours 1,600 (200*$8) 1,600 (200*$8)
Overhead costs: $2,845 $2,260
Exercise
1. State and explain 5 characteristics of the
youth
Karen, Kelsey, Rita, and Lizzi own a large commercial building as concurrent owners. They are tenants with the right to survivorship. Lizzi transfers her one-quarter interest in the building to a private charity organization owned by Stella. Which form of concurrent ownership would allow Karen, Kelsey, and Rita to become the owners of the property following Lizzi's death without the inclusion of the private charity organization run by Stella?
a) a tenancy in common
b) a tenancy by entirety
c) a joint tenancy
d) a community property
Answer:
Option C: A Joint tenancy
Explanation:
Joint Tenancy
This is simply a type of a concurrent estate. This is the process by which the cotenants have acquired four unities of title. That is the: the unity of Time, the unity of Title, the Unity of Interest and the Unity of Possession. The cotenants must received these unities from the same transferor(s) and each joint tenant is has equal right to the primary benefit of a joint tenancy such as the right of survivorship. It is the property that belongs to two or more people, even if married or unmarried.
This Joint tenancy deals with 2 or more tenants who owns the land altogether, in all. No tenant has more than the other.
The right of survivorship
It is stated that upon death of a joint tenant, the deceased's interest transfers straight to the surviving joint tenant or tenants-one less owner
Why is the act of falsifying company records not in line with good business
ethics?
O A. Because it shows aggression
O B. Because it doesn't show teamwork
O C. Because it harms other individuals
O D. Because it shows lack of honesty
SUBMIT
PREVIOUS
US
Answer:
D. because it shows a lack of honesty
Last year (2016), Sarasota Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company’s accountant to provide him with cost data on the company’s elevator. This information is presented below.:
Old Elevator New Elevator
Purchase price $103,500 $159,000
Estimated salvage value 0 0
Estimated useful life 5 years 4 years
Depreciation method Straight-line Straight-line
Annual operating costs
other than depreciation:
Variable $34,000 $11,000
Fixed 23,900 8,200
Annual revenues are $241,000, and selling and administrative expenses are $30,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Bramble Condos will be able to sell it for $25,900.
Required:
Determine any gain or loss if the old elevator is replaced.
Answer:
$56,900 loss
Explanation:
Calculation to determine any gain or loss if the old elevator is replaced.
First step is to calculate the Book value of old Elevator
Purchase price $103,500
Less: Depreciation expense for the year 2016 (($103,500-0)/5) $ 20,700
Book value of old Elevator $ 82,800
($103,500-$20,700)
Now let calculate any gain or loss if the old elevator is replaced.
Book value of old Elevator $ 82,800
Less: Sold of old Elevator $25,900
Loss on Sales of old Elevator $56,900
Therefore the loss if the old elevator is replaced is $56,900
if the market price of common stock increases substantially, bondholders with convertible bonds benefit. convertible bonds can be converted into common stock at the option of the issuing company. bondholders with convertible bonds receive interest on the bonds until conversion. convertible bonds sell at a higher price and pay a lower rate of interest than those without the conversion option.
Answer:
if the market price of common stock increases substantially,
bondholders with convertible bonds benefit.
Explanation:
A convertible bond is a fixed interest debt security. The number of common shares into which it can be converted is predetermined at the issuance date. While the conversion can be done at certain time in the life of the bond, the decision to convert is usually at the discretion of the bondholder. As investors, bondholders opt to convert when it would be most profitable. This happens when the market price of the common stock increases.
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins.'
Answer:
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Explanation:
To calculate the amount that would be recorded as a liability, we need to find the present value of the jet. The present value can be calculated by discounting the cash flows provided in the question. The 200000 cash flows that will be payable every year are in the form of an ordinary annuity and their present value will be calculated using the attached formula. The present value of 1000000 that is payable at the end of the 10th year will be calculated as follows,
Present Value of Cash flow = Cash Flow / (1+r)^t
Where,
r is the discount rate t is the time periodPresent value of liability = 200000 * [(1 - (1+0.06)^-10) / 0.06] +
1000000 / (1+0.06)^10
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
what is jute sacks ?
Explanation:
A burlap sack or gunny sack, also known as a gunny shoe or tow sack, is an inexpensive bag, traditionally made of hessian fabric formed from jute, hemp or other natural fibers. Modern-day versions of these sacks are often made from synthetic fabrics such as polypropylene.
What does it mean if a company's website has a high bounce rate?
1. Potential customers who click on their ad are only visiting the company's home page.
2. Potential customers are not clicking on their ad and are instead clicking on the ads of their competitors.
3. Potential customers are clicking on their ad and the company's website is holding their interest enough for them to explore other page links.
4. The company's website ranks high in a search engine's unpaid results.
5. The company has successfully engaged customers to pass along information to other potential customers.
Answer:
. Potential customers who click on their ad are only visiting the company's home page.
Explanation:
Bounce rate measures the rate at which people open a website and then leave immediately. bounce rate is measured by the number of people who only view a page.
If a company has a high bounce rate, it means that the company is not successfully engaging its customers
Reasons for a high bounce rate
the information or content on the website is not relevant to usersthe website takes too long to loadExcessive advertisement on the websiteIn its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still outstanding at year-end. The remaining $23,400 was received in cash from customers. The company incurred operating expenses of $15,500. Of these expenses, $12,010 were paid in cash; $3,490 was still owed on account at year-end. In addition, Crane prepaid $2,300 for insurance coverage that would not be used until the second year of operations.
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. 2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
Kim's Bridal Shoppe has 10,400 shares of common stock outstanding at a price of $38 per share. It also has 225 shares of preferred stock outstanding at a price of $89 per share. There are 540 bonds outstanding that have a coupon rate of 5.7 percent paid semiannually. The bonds mature in 19 years, have a face value of $1,000, and sell at 94 percent of par. What is the capital structure weight of the common stock
Answer:
42.83%
Explanation:
The computation of the weight of the common stock is shown below
= Common stock ÷ Total capital
= $395,200 ÷ $922,825
= 42.83%
Working note
For Common Stock
= 10,400 shares × $38
= $395,200
For Preferred Stock
= 225 shares × $89
= $20,025
Bonds Outstanding
= 540 Bonds × $1,000 × 94% of par
= $507,600
Now the Total capital is
= $395,200 + $20,025 + $507,600
= $922,825
Why is having a long credit history with a few blemishes that were corrected better than a short history that is clear? edg
Assume a central bank follows a rule that requires it to take steps to keep the price level constant. If the long run price level fell because of a decrease in aggregate demand and a subsequent increase in short run aggregate supply that kept output unchanged, then Question 5 options: a) the central bank would have to decrease the money supply which would decrease output. b) the central bank would have to increase the money supply which would decrease output. c) the central bank would have to increase the money supply which would increase output. d) the central bank would have to decrease the money supply which would increase output.
Answer:
a) the central bank would have to decrease the money supply which would decrease output.
Explanation:
In the case when the long run price would fall due to the reduction in the aggregate demand and there is a rise of short run aggregate supply so the central bank would have to reduce the money supply due to this it automatically reduced the output as it shows the direct relation between the money supply and the output
Therefore the correct option is a.
Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 76,000 $ 55,000 $ 82,000 $ 158,000 $ 37,000 $ 408,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment
Answer:
hi hi hi hi hi hi hi hi hi hi hi hi hi hi łíłśA new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax income of $75,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
The net present value of each potential investment:
Machine A Machine B
NPV $167,675 $2,267
Explanation:
a) Data and Calculations:
Machine A Machine B
Cost of machine $565,000 $410,000
Incremental after-tax income 165,000 75,000
Salvage value 25,000 26,000
Estimated useful life 6 years 8 years
Required rate of return 10% 10%
Annuity factor 4.355 5.335
PV factor 0.564 0.467
PV of incremental after-tax income $718,575 $400,125
($165,000*4.355) ($75,000*5.335)
PV of salvage value $14,100 $12,142
Total PV of income $732,675 $412,267
NPV $167,675 $2,267
= Total PV of income minus PV of initial investment cost
Josiah is training users to navigate Access forms. What is the best way to advance in the form to the next field?
Enter
Shift+Tab
Ctrl+Home
End
Answer: Enter
Explanation:
If one wants to move to the next field but still in the same form on Access, one simply needs to tap the Enter button and it will move on. This is the same thing that happens in Excel when Enter is tapped.
It is probably because the forms created in Access do not allow for paragraphs so the enter key will only move you to another field instead of creating a new paragraph.
Juan and Carl have a small medical practice that operates as a partnership. Juan does 70% of the work and Carl does 30%. However, Carl invested 60% of the money required to start the business. If the company makes $100,000 in profit this year, how much will each partner receive?
a. Juan will receive $70,000; Carl will receive $30,000.
b. Juan will receive $50,000; Carl will receive $50,000.
c. Juan will receive $40,000; Carl will receive $60,000.
d. Juan will receive $60,000; Carl will receive $40,000.
e. Profits will be shared in the proportion specified in the partnership agreement.
Answer:
e. Profits will be shared in the proportion specified in the partnership agreement.
Explanation:
Partnership agreement is the governing document of an partnership. The agreement consist of how profit will be shared and has been agreed right before the partnership contract become become binding. Thus, the fact that Juan does 70% of the work and Carl does 30% of work does not specifies nor idicate profit sharing. Also, the fact that Carl invested 60% of the money required to start the business does not specify profit sharing as well. The profit sharing agreement is in the partnership agreement.
Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:
Net income $5,135
Purchase of property, plant, and equipment 1,071
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Cash received from customers 37,164
Payments to reduce long-term debt 46
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Dividends paid 277
Interest paid 90
Purchase of treasury stock (stock repurchase) 2,583
Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)
Answer:
Cash flows from investing activities
Purchase of property, plant, and equipment (1,071)
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Net Cash from investing activities 6,042
Cash flows from financing activities
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Payments to reduce long-term debt (46)
Dividends paid (277)
Purchase of treasury stock (stock repurchase) (2,583)
Net Cash used by financing activities
Explanation:
The cash flows from investing and financing activities sections of the cash flow statement are presented as above.
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,600; remodeling of offices, $22,200; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,200; addition of a security system to the manufacturing facility, $25,200.How should Demmert account for each of these expenditures
Answer and Explanation:
The description is as follows:
The annual maintenance for an equipment is $5,600 it would be classified as a normal repairs & maintenance and the same would be expensed
The remodeling of office for $22,200 would be classified as an improvement. The same would be capitalized & depreciated
The rearrangement of the shipping & receiving area for $35,200 would be classified as a rearrangement and The same would be capitalized & depreciated
The addition for $25,200 would be classified as an addition and The same would be capitalized & depreciated
On January 1, 2021 Rastell Co signed a long term finance lease for an office building. The terms of the lease required Rastall to pay 16,000 annually beginning December 31, 2021 and continuing each year for 16 years. On January 1, 2021 the present value of the lease payments is 151, 146 discounted at the 7% interest rate implicit in the lease In Rastall’s December 31, 2021, balance sheet, the lease payable should be:
a. $109,200
b. $112,679
c. $221,000
d. $95,679
Answer:
$145,726
Explanation:
Note: The options to this question belongs to another question entirely and that is attached as picture. So, the correct answer is not among the 4 options
Interest expense = Present value of lease payment * Interest rate
Interest expense = $151,146 * 7%
Interest expense = $10,580.22
Particulars Amount
Present value of lease payment $151,146
Add: Interest expense $10.580
Less: Annual Payments ($16,000)
Lease Payable on December 31, 2021 Balance Sheet $145,726
McCoy's Fish House purchases a tract of land and an existing building for $930,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,300. The company also pays $12,600 in property taxes, which includes $8,300 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,300 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $46,500 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,600 and pays an additional $10,300 to level the land.
Required:
Determine the amount McCoy’s Fish House should record as the cost of the land.
Answer:
The amount McCoy’s Fish House should record as the cost of the land is $993,800.
Explanation:
The amount McCoy’s Fish House should record as the cost of the land can be determined as follows:
Total cost of the land = Purchase price + Title insurance + Property taxes which are back taxes + Cost of removing the building – Salvage value + Additional cost of leveling the land = $930,000 + $2,300 + $8,300 + $46,500 - $3,600 + $10,300 = $993,800
Therefore, the amount McCoy’s Fish House should record as the cost of the land is $993,800.
Like all companies, McDonald's needs to continue identifying, developing, and introducing new products. One recent concept McDonald's identified is a vegan burger. After assessing the concept, McDonald's research and development kitchen developed a vegan burger that they felt would be appealing to the 13% of Americans that are vegetarian or vegan. Before rolling the vegan burger out, McDonald's wanted to examine the viability in the real world, but on a limited basis. McDonald's next step should be to ________ the vegan burger.
a. test market
b. concept test
c. field exam
d. commercialize
Answer:
a. test market
Explanation:
The test market consists of a strategy used by organizations to assess how consumers will be receptive to a new product or service launched. In this step, companies select a group of consumers or a specific region with a profile aligned with the new product, to feel the reaction of the market, and then be able to distribute the product on a large scale. After defining the target audience of the test market, the companies monitor the promotion and distribution strategies, carrying out a kind of test to verify the errors and successes of the marketing campaign and the possibilities of the insertion of the new product in the mass market to be successful .
This is an advantageous strategy for companies, due to the lower cost associated with a large-scale launch, the monitoring of high risks, and the possibility of feeling the market, making corrections and checking the demand for the product.
Sunland Company received proceeds of $664000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $704000, pay interest annually on December 31, and have a call price of 105. Sunland uses the straight-line method of amortization. What is the amount of interest expense Sunland will show with relation to these bonds for the year ended December 31, 2020
Answer:
$46,240
Explanation:
Calculation to determine the amount of interest expense Sunland will show with relation to these bonds for the year ended December 31, 2020
Interest expense=($704,000 × .06)+[($704000-$664000)/10]
Interest expense= $42,240+($40,000/10)
Interest expense=$42,240+$4,000
Interest expense=$46,240
Therefore the amount of interest expense Sunland will show with relation to these bonds for the year ended December 31, 2020 is $46,240