Answer:
A.24,000
Explanation:
Depreciation expense for the year 2016 can be calculated as follows
DATA
Acquisition year = 2013
Cost = $210,000
Residual value = 30,000
Accumulated depreciation = 144,000
Estimated useful life = 5 years
Remaining useful life = 5 + 4 + 3 + 2 + 1 = 15
Solution
Year Cost Remaining life Depreciation fraction Depreciation exp
1 180,000 5 5/15 $60,000
2 180,000 4 4/15 $48,000
3 180,000 3 3/15 $36,000
4 180,000 2 2/15 $24,000
5 180,0000 1 1/15 $12,000
Harris Co. should record $24,000 in 2016 for this asset
Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $340,000 net income during 2018, paid $24,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,034,000. Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo (1) lacks significant influence or (2) has significant influence over the operating and financial policies of the investee.
Required 1
Record the entry for investment in Sonny Enterprises.
Record the entry for cash dividend received.
Record the net unrealized holding gain or loss for an available-for-sale investment.
Required 2:
Record the entry for investment in Sonny Enterprises.
Record the revenue from Sonny Enterprise during 2018.
Record the receipt of dividend during 2018.
Answer and Explanation:
The Journal entry is shown below:-
As per requirement 1
1. Investment in Sonny Enterprises Dr, $1,000,000
To Cash $1,000,000
(Being investment is recorded)
2. Cash Dr, $24,000
To Dividend revenue $24,000
(Being cash dividend received is recorded)
3. Fair value adjustment Dr, $34,000
To Unrealized holding gain or loss - OCI $34,000
(Being investment at fair value is recorded)
As per requirement 2
1. Investment in Sonny Enterprises Dr, $1,000,000
To Cash $1,000,000
(Being investment is recorded)
2. Investment in Sonny Enterprises Dr, $34,000
To Investment Income $34,000 ($340,000 × 10%)
(Being revenue from Sonny is recorded)
3. Cash Dr, $24,000
To Investment in Sonny Enterprises $24,000
(Being the receipt of dividend is recorded)
A project will reduce costs by $38,500 but increase depreciation by $18,300. What is the operating cash flow if the tax rate is 35 percent?
Answer:
$31,430
Explanation:
A project will reduce costs by $38,500
The project will have an increased depreciation of $18,300
The tax rate is 35%
= 35/100
= 0.35
Therefore, the operating cash flow can be calculated as follows
Operating cash flow= reduction in project cost×(1-tax rate)+(increase in the depreciation amount ×tax rate)
= $38,500×(1-0.35)+($18,300×0.35)
= $38,500×0.65+6,405
= $25,025+$6,405
= $31,430
Hence the operating cash flow is $31,430
The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report. The actual fixed overhead cost in the month of August was and the budgeted fixed overhead cost was . The standard hours in August were and the standard rate per machinehour was . Calculate the standard fixed overhead cost allocated to production, the fixed overhead budget variance, and the fixed overhead volume variance. A. ; F; U B. ; F; U C. ; F; U D. ; F; U
Answer: d. $36,400; $1700 F; $500 U
Explanation:
1. Standard fixed overhead cost allocated to production
= Standard Hours * Standard rate per machine hour
= 2,600 * 14
= $36,400
2. Fixed overhead budget variance
= Budget overhead cost - Actual overhead cost
= 36,900 - 35,200
= $1,700 favorable
3. Fixed Overhead Volume Variance
= Standard fixed overhead cost - Budgeted overhead
= 36,400 - 36,900
= -$500
= $500 Unfavorable
Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,400 units. The costs and percentage completion of these units in beginning inventory were: 2 points Percent Complete 60% 55% Cost $ 7,000 $10,300 Materials costs Conversion costs 01:53:47 A total of 10,500 units were started and 8.900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: eBook Materials costs Conversion costs $ 96,800 $171,000 References The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.
How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 4,000
b. 1,800
c. 8.100
d. 1,600
Answer:
a. 4,000
Explanation:
Units in ending inventory
= Units in beginning work in process + Units started into production - Units transferred to the next department
= 2,400 + 10,500 - 8,900
= 4,000 units
cember 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. In Rupar's December 31, 2021, journal entry to record the second period of interest, Rupar would record a credit to interest revenue of
Answer:
B. $3,373
Explanation:
The computation is given below:
For Held- to -Maturity investment
Face Value of the bond = 100,000
Coupon rate = 6%, for Semi-annual Period should 6% ÷ 2 = 3%
Effective rate = 7% For Semi-annual Period should be 7% ÷ 2 = 3.5%
Now
Purchase Price of the Bond is
= 100,000 - 4000
= 96,000
Now
First interest :
Cash interest = 100,000 × 3% = 3,000
interest Revenue = 96,000 × 3.5% = 3,360
So,
Discount Amortized is
= 3360 - 3,000
= 360
And,
Carrying Value of the Bond should be
= 96,000 + 360
= 96,360
For Second YEar
Interest Revenue = Carrying Value Effective interest Rate
= 96,360 × 3.5%
= 3,372.6
= $3,373
Orleans Corporation, a U.S. corporation, reported U.S. taxable income of $2,000,000. Included in the computation of taxable income was a $400,000 dividend from a 5%-owned Canadian subsidiary. A withholding tax of $8,000 was imposed on the dividend. What is Orleans’s net U.S. tax liability?
Answer:
$420,000
Explanation:
Calculation for Orleans’s net U.S. tax liability
Using this formula
Tax liability=Taxable income×U.S tax rate
Let plug in the formula
Tax liability=$2,000,000×21%
Tax liability=$420,000
Therefore Orleans’s net U.S. tax will be $420,000. The withholding tax amount of $8,000 was not included because it was already imposed on the dividend.
Akers Company sold bonds on July 1, 2017, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%. By July 1, 2018, the market yield on these bonds had risen to 10%.
Required:
What was the bonds' market price on July 1, 2018?
Answer:
Price of bond= $75,075.58
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of the bond for Akers Company can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 6% × 100,000 × 1/2 = 3000
Semi-annual yield = 10%/2 = 5% per six months
Total period to maturity (in months)
= (2 × 10) = 20 periods
PV of interest =
3000 × (1- (1+0.05)^( -20)/) 0.05 = 37,386.63
Step 2
PV of Redemption Value
= 100,000 × (1.05)^(-20) = 37,688.95
Price of bond
Price of bond = 37,386.63 + 37,688.95 = 75,075.58
Price of bond= $75,075.58
Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. If Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?
Answer:
$714,980.95
Explanation:
The most it would be willing to pay is the present value of the cash flows
present value is the sum of discounted cash flows from a project
present value can be determined with a financial calculator
Cash flow each year from year 1 to 6 = $150,000
I = 7%
Present value = $714,980.95
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
TB MC Qu. 9-336 Puvo, Inc., manufactures a single product in which ...
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
Standard Quantity Standard Price or Rate Standard Cost
Direct materials 6.10 pounds $0.90 per pound $5.49
Direct labor 0.50 hours $36.50 per hour $18.25
Variable manufacturing
overhead 0.50 hours $8.80 per hour $4.40
During March, the following activity was recorded by the company:
• The company produced 3,500 units during the month.
• A total of 20,500 pounds of material were purchased at a cost of $14,680.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,720 pounds of material remained in the warehouse.
• During March, 1,200 direct labor-hours were worked at a rate of $41.50 per hour.
• Variable manufacturing overhead costs during March totaled $15,161.
The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is:_______.
a. $3,641 F.
b. $4,355 U.
c. $4,355 F.
d. $3,641 U.
Answer:
Variable manufacturing overhead rate variance= $4,596 unfavorable
Explanation:
Giving the following information:
Variable manufacturing overhead 0.50 hours $8.80 per hour $4.40
Actual direct labor hours= 1,200
Variable manufacturing overhead costs during March totaled $15,161.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 15,161/1,200= $12.63
Variable manufacturing overhead rate variance= (8.8 - 12.63)*1,200
Variable manufacturing overhead rate variance= $4,596 unfavorable
tổ chức kiểm toán nội bộ cho hoạt động quản lý hàng tồn kho
Answer:
Hmmmmmmmm its động
Explanation:
Yw
Answer:
I don’t know
Explanation:
Consider a university that purchases replacement chairs for its classrooms. The purchasing manager knows that the annual demand for replacement chairs is 500. The pricing schedule is as follows: Use the following Excel solution to this quantity discount problem with constant carrying cost. Carrying cost = $ 15 Ordering cost = $ 200 Annual Demand = 500
Quantity Price Q Discount Q Total Cost
100 $130 115.47 115.47 $ 66,732.05
200 $122 115.47 200.00 $ 63,000.00
500 $120 115.47 500.00 $ 63,950.00
What is the inventory ordering cost using the economic order quantity?
A. $1,000
B. $866
C. $500
D. $200
Answer:
b. $866
Explanation:
Annual demand from the question = D = $500
the ordering cost = S = $200
then the cost of carrying H = $15
we have to calculate the economic order quantity
= sqr(2*D*S)/H
= sqr(2 x 500 x 200)/25
= sqr(13333.3333)
this equals 115.469
which is approximately 115.5
next we have to calculate inventory ordering cost
= (D * S)/EOQ
= 200 *500/115.5
= 865.5
When approximated becomes $866
The inventory ordering cost using the economic order quantity is: B. $866.
First step is to calculate the Economic order quantity
Economic order quantity =√(2×D×S)/H
Where:
D=Annual demand=$500
S=Ordering cost=$200
H=Holding cost =$15
Let plug in the formula
Economic order quantity =(2 x 500 x 200)/15
Economic order quantity =√200,000/15
Economic order quantity =√13333.3333
Economic order quantity =115.46
Economic order quantity = 115.5 (Approximately)
Second step is to calculate the inventory ordering cost using this formula
Inventory ordering cost= (Annual demand× Ordering cost )/Economic order quantity
Let plug in the formula
Inventory ordering cost= (200×500)/115.5
Inventory ordering cost=100,000/115.5
Inventory ordering cost=$865.8
Inventory ordering cost=$866 (Approximately)
Inconclusion the inventory ordering cost using the economic order quantity is: B. $866.
Learn more here:https://brainly.com/question/14498670
TB MC Qu. 6-75 Kuzio Corporation produces and ... Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 75 50 % Contribution margin $ 75 50 % The company is currently selling 6,500 units per month. Fixed expenses are $184,000 per month. The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Effect on income= $6,450 increase
Explanation:
Giving the following information:
Contribution margin= $75
The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in contribution margin - increase in fixed costs
Effect on income= 190*75 - 7,800
Effect on income= $6,450 increase
On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of common stock b. payments for cash dividends c. payment for interest on short-term notes payable d. payments for the purchase of investments
Answer:
c. payment for interest on short-term notes payable
Explanation:
Cash flow statement shows positive and negative cash flows that result from activities of a business. It is divided into 3 parts: cash flow from operating activities, cash flow from investing activities, cash flow from financing activities.
Cash flows form operations involves cash flows from regular business activities. A positive change in assets represents an outflow and a negative change in liability represents an inflow.
Items considered under operating activities include inventory, accounts receivable, accrued revenue, accounts payable, and tax liabilities.
Payment for interest on short-term notes payable is a account payable item, so it is included in cash flow from operations
A government bond with a coupon rate of 5% makes semiannual coupon payments on January 12 and July 12 of each year. The Wall Street Journal reports the asked price for the bond on January 27 at $1,004.375. What is the invoice price of the bond? The coupon period has 182 days.
Answer:
invoice price (dirty price) = $1,006.435
Explanation:
semi-annual coupon = $1,000 x 5% x 1/2 = $25
clean price = $1,004.375
accrued interest = (Jan. 27 - Jan. 12) x $25 x 1/182 = $2.06
invoice price (dirty price) = clean price + accrued interest = $1,004.375 + $2.06 = $1,006.435
the dirty price or invoice price of a bond includes any accrued interest that the bond may have earned in the period between the last coupon payment and the transaction date.
"A $10,000 municipal bond with 10 years to maturity is purchased in the primary market at 105. The bond is sold after 4 years at 105. The taxable gain or loss is a:"
Answer:
2 point capital gain
Explanation:
Every municipal bond that is purchased at premium is subject to straight line depreciation, whether the premium be trading premium or original issue premium.
Here the premium is 5 points = 105 - 100
Which shall be amortised over its useful life of 10 years.
Thus, for each year 1/2 point is amortised without allowing any tax deduction.
Thus, after 4 years total amortisation = [tex]\frac{1}{2} \times 4years = 2[/tex]
Thus, value at end of year 4 = 105 - 2 = 103 basis point.
Further the selling amount = 105 basis point.
Thus, 105 - 103 = 2 basis point shall be taxable.
A(n) ____ is a computer-based information system designed to help knowledge workers select one of many alternative solutions to a problem.
Answer: decision support system (DSS)
Explanation:
A decision support system better known as (DSS) is a computer based program which is used to support or aid determinations, judgments, and courses of action been taken in an organization or a business. A DSS browses through and analyzes massive amounts of data, thereby compiling comprehensive information which can be used to solve problems and make important decisions in and organization or business.
A project manager forgets to assess how national holidays and team member vacations will affect the project’s completion date. Now, because of team member time off, the project delivery will be two weeks late. What flexible planning strategy could the project manager have used to avoid the delay?
The flexible strategy is used to avoid the delay in assessing the external constraints.
The following information regarding accessing external constraints:
It could be thrust upon an organization.It permits for uncovering the things that are beyond the control.The example involved national holidays or sick leaves.If we accessing the external constraints so the delay could be avoided.
So, The other options seem incorrect
Therefore we can conclude that the flexible strategy is used to avoid the delay in assessing the external constraints.
Learn more about the external constraints here: brainly.com/question/17156848
To reduce delays in considering external restrictions, a flexible technique is employed. The following details about external limitations are available:
It has the potential to be imposed on a company.It enables us to see what we can't see.National holidays and sick leave were used as examples.The delay may be minimized if we used external limitations.It concludes that the flexible technique is employed in order to prevent a delay in considering external limitations.Therefore, "Assessing external constraints" is correct.
Learn more:
brainly.com/question/5317558
Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit.a. To provide a 98 percent service probability, what must the reorder point be?b. Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?
Answer:
a. Reorder point is 1,164 units to provide a 98 percent service probability.
b. the new service probability will be 79% if production manager reduces the safety stock by 100 units.
Explanation:
a. To provide a 98 percent service probability, what must the reorder point be?
This can be calculated as follows:
Step 1: Calculation of optimal order quantity
The optimal order quantity also known as economic order quantity (EOQ) using the following formula:
[tex]EOQ = \sqrt{\frac{2 *D*O}{C} }[/tex] ........................................... (1)
Where,
EOQ = Optimal order quantity = ?
D = Annual demands = 13,000
O = Ordering cost = $100
C = Carrying cost of annual inventory = $0.65 per unit
Substituting the values into equation (1), we have:
[tex]EOQ = \sqrt{\frac{2*13,000*100}{0.65} }[/tex]
[tex]EOQ = \sqrt{\frac{2,600,000}{0.65} }[/tex]
[tex]EOQ = \sqrt{4,000,000}[/tex]
EOQ = 2,000 units
Step 2: Calculation of standard deviation during the lead time
This can be calculated using the following formula:
[tex]SL = \sqrt{L*(S)^{2} }[/tex] ................................................. (2)
Where;
SL = Standard deviation during the lead time = ?
L = Lead time = 4
S = Standard deviation = 40
Substituting the values into equation (2), we have:
[tex]SL = \sqrt{4 *(40)^{2} }[/tex]
[tex]SL = \sqrt{4*1,600}[/tex]
[tex]SL =\sqrt{6.400}[/tex]
SL = 80
Also, z = 2.05 from the standard normal distribution
Step 3: Calculation of reorder point
Total calculate reorder point, we use the following formula:
R = (d * L) + (z * SL) ............................................ (3)
Where;
R = Reorder point = ?
d = Weekly demand = 250
L = Lead time = 4
z = 2.05
SL = Standard deviation during the lead time = 80
Substituting the values into equation (3), we have:
R = (250 * 4) + (2.05 * 80)
R = 1,000 + 164
R = 1,164 units
Therefore, reorder point is 1,164 units to provide a 98 percent service probability.
b. Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?
ISS = Initial safety stock = z * SL = 2.05 * 80 = 164
If the safety stock is reduced by 100 units, we have:
NSS = New safety stock = ISS - 100 = 164 - 100 = 64
The new z (nz) can be obtained as follows:
NSS = nz * SL ................................................. (4)
Where;
NSS = 64
nz = new z = ?
SL = Standard deviation during the lead time = 80
Substituting the values into equation (4) and solve for nz, we have:
64 = nz * 80
nz = 64 / 80
nz = 0.80
For the new z, nz = 0.80, from Standard Normal distribution, the new service probability is 79%.
Therefore, the new service probability will be 79% if production manager reduces the safety stock by 100 units.
A mortgage is paid off in 30 years with a total of $124,000. It had a 2% interest rate that compounded monthly. What was the principal
Answer:
the Principle, PV on the mortgage was $68,086.64.
Explanation:
The Principle on the mortgage, PV is determined as follows :
FV = $124,000
N = 30 × 12 = 360
P/ yr = 12
PMT = $0
R = 2%
PV = ?
Using a Financial Calculator, the Principle, PV on the mortgage was $68,086.6399 or $68,086.64.
An invoice of $600 for merchandise purchased is showing 3/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day after the invoice date, the amount to be paid is ________.
Answer:
Amount Payable or paid = $582
Explanation:
The terms of purchase state that the buyer will be entitled to a 3% cash discount if the payment for the purchases is made within 15 days of the purchase or invoice date.
Thus, if the payment is made on or within the fifteen days of invoice date, the cash discount that will be received is,
Discount = 600 * 0.03 = $18
So, the amount that will be payable for the merchandise will be,
Amount Payable or paid = 600 - 18 = $582
Analyze the following scenarios to determine who can appropriately access health information.
1. Mrs. John Smith is requesting the emergency room records from last week of her daughter, Katy. Mrs. Smith is the noncustodial parent of Katy, who lives with her dad. Should you release the records to her? Why or why not?
2. Mr. Fred Mitchell is requesting the birth record for Amy, his birth daughter. Mr. and Mrs. Mitchell gave Amy up for adoption four years ago. Should you release the records to him? Why or why not?
3. Mrs. Lynn Olsen is requesting the lab results of her husband, Tim. She has a note. signed by him, giving his permission for her to have the records. Should you release the records to her? Why or Why not?
4. An investigator from the Health and Human Services department is conducting an audit of patient records and has provided a list of records that they want to review. Should you release the information to the investigator? Why or why not?
5. Dr. Rex Harrisson is requesting the medical records of Martha Flynn. He states he is a family friend and has been asked by Mrs. Flynn's son to review her last inpatient admission for appropriateness of care. Should you release the records to Dr. Harrison? Why or why not?
Answer:
4. because they are government officials
4. You should release the information to the investigator from the Health and Human Services department because they are government officials.
What is Human Services department ?A Department of Human Services (DHS) or Ministry of Human Services (MHS) is a national or subnational umbrella agency in charge of delivering public assistance programmes to the people they serve. Social security, social affairs, human resources, and welfare are some of the various aspects or alternate names.
Human Service with Multiple Purposes Organizations encourage volunteerism and offer a variety of direct services in the communities they serve, across the country, and around the world. Among these organisations are YMCAs, YWCAs, and the Red Cross, among others.
Answer to questions :
1. Mrs. Smith cannot get the records because non-custodials parent have no right to get any medicalrecord. She can only visit.
2. The Original Birth certificate will be Sealed and no longer available once the child is been adopted
3. No, even though her husband has signed a note, the lab results should not be released.
4. You should release the information to the investigator.
To learn more about Human Services department refer :
https://brainly.com/question/2093822
#SPJ2
Who is responsible for responding to workflow(s) for equipment dispatch requests through the business workplace require An approving authority must approve
Answer:
Commander
Explanation:
GCSS-Army is short for Global Combat Support System-Army. The GCSS is a section of the United States Army that is fielded under the 11th Armored Cavalry Regiment. There are the GCSS Wave 1 and GCSS Wave 2. These two groups have different roles.
The role of the Commander falls under the Wave 2 functions where he is required to perform the roles of maintenance, dispatch, unit supply, and property book functions. The Wave 1 function is mostly about allowing access to support supply activity functions. The commanders in any organization they work with can screen several transactions and give approval for equipment dispatch.
If a company uses straight-line depreciation, the annual average investment can be calculated as: (Check all that apply.)
Answer: beg book value +the salvage value) / 2.
(the sum of annual average book values) ÷ asset’s life
(beg book value +the end book value) ÷ 2.
Explanation:
Depreciation is simply when an asset begin to wear and tear and thereby its value is reduced.Straight line depreciation is calculated when the difference between the cost of an asset and the expected salvage value is divided by the number of years it is projected to be used.
Using this method, the annual average investment can be calculated as:
• beg book value +the salvage value) / 2.
• (the sum of annual average book values) ÷ asset’s life
• (beg book value +the end book value) ÷ 2.
Gabriel Industries stock has a beta of 1.12. The company just paid a dividend of $1.15, and the dividends are expected to grow at 4 percent. The expected return on the market is 11.4 percent, and Treasury bills are yielding 3.8 percent. The most recent stock price is $85. (a) Calculate the cost of equity using the dividend growth model method. (b) Calculate the cost of equity using the SML method. (c) Why do you think your estimates in (a) and (b) are so different?
Answer and Explanation:
a. The computation of cost of equity using the dividend growth model method is shown below:-
Expected Dividend = Current dividend × (1 + Growth rate)
= $1.15 × (1.04)
= $1.196
Current Stock Price = $85
Cost of Equity = (Expected dividend ÷ Current stock price) + growth rate
= (1.196 ÷ 85) + 0.04
= 0.05407
or
= 5.41 %
b. The computation of cost of equity using the SML method is shown below:-
Using CAPM, Cost of Equity = Risk free rate + Stock beta × (Market return - Risk free rate)
= 3.8 + 1.12 × (11.4 - 3.8)
= 12.31%
c. Since there are two different methods like SML and dividend growth model for determining the cost of equity so the estimates are so different
Teams with both difficult goals and specific incentives to attain them achieve the _____ performance levels.
Answer:
Highest
Explanation:
teams with highest performance are are social groups that work to achieve a common objective or goals that can be either short term or long term. These kind of teams achieve peak performance by By having both difficult goals and specific incentives to attain these goals. Such teams must have a common objective that can be turned into performance goals that can be measured.
Bella Pool Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is
Answer:
The transaction price allocated to the pool and the installation is $124,540.54 and $19,459.46 respectively.
Explanation:
Price Allocation to Pool = $144,000 * (128,000 / (128,000 + 20,000))
Price Allocation to Pool = $144,000 * 0.864865
Price Allocation to Pool = $124,540.54
Price Allocation to Installation = $144,000 * (20,000 / (128,000 + 20,000))
Price Allocation to Installation = $144,000 * 0.135135
Price Allocation to Installation = $19,459.46
An existing robot can be kept if $2,300 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and the challenger. The company's before-tax MARR is 25% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time.
Defender Challenger
Current MV $39,000 Purchase price $50,000
Required upgrade $2,300 Installation cost $5,000
Annual expenses $1,600 Annual expenses $1,000
Remaining useful life 6 years Useful life 10 years
MV at end of useful life -$1,500 MV at end of useful life $7,000
The AW value of the defender is:________ $.
Answer:
The AW value of the defender is:________ $15,729.
Explanation:
a) Data and Calculations:
Defender Challenger
Current MV $39,000 Purchase price $50,000
Required upgrade $2,300 Installation cost $5,000
Annual expenses $1,600 Annual expenses $1,000
Remaining useful life 6 years Useful life 10 years
MV at end of useful life -$1,500 MV at end of useful life $7,000
Investment = $39,000 + $2,300 Investment = $50,000 + $5,000
= $41,300 = $55,000
Present Value = ($41,300 + Present Value = ($55,000 +
$1,600 x 2.951) = $46,021.60 $1,000 x 3.571) = $58,571
$46,022 + $393 ($1,500 x .262) $58,571 - $749 ($7,000 x .107)
Equivalent Annual Cost Equivalent Annual Cost
= $46,415/ 2.951 = $57,822/3.571
= $15,729 = $16,192
The robots' Equivalent Annual Costs (or Average Weighted Value) are the total costs of owning, operating, and maintaining the robots for 6 years and 10 years respectively. For the old robot, additional cost of $1,500 will be incurred to retire the asset, while the new robot will have a salvage value of $7,000. These are factored into the equivalent annual costs, after discounting them to their present values.
Whenever an existing piece of equipment is considered for replacing by a new piece of equipment, the old piece is referred to as the defender, and the new piece of equipment is referred to as the challenger.
The AW value of the defender is------------$15,729.
a) Data and Calculations:
Defender Challenger
Current MV -------$39,000 Purchase price-------$50,000
Required upgrade----------$2,300 Installation cost------$5,000
Annual expenses-----------$1,600 Annual expenses -------$1,000
Remaining useful life--------6 years Useful life ------10 years
MV at end of useful life------$1,500 MV at end of useful life--$7,000
Investment--------- $39,000 + $2,300 Investment = $50,000 + $5,000
= $41,300 = $55,000
Present Value = ($41,300 + Present Value = ($55,000 +
[tex]\$1,600 \times 2.951[/tex]) = $46,021.60 [tex]\$1,000 \times3.571[/tex]) = $58,571
$46,022 + $393 [tex](\$1,500 \times .262)[/tex] $58,571 - $749 ([tex]\$7,000 \times .107[/tex])
Equivalent Annual Cost Equivalent Annual Cost
= [tex]\frac{\$46,415}{ 2.951}[/tex] = [tex]\frac{\$57,822}{3.571}[/tex]
= $15,729 = $16,192
The overall expenses of owning, operating, and maintaining the robots for 6 - 10 years, correspondingly, are the Equivalent Annual Costs (or Average Weighted Value).
The old robot will incur an additional cost of $1,500 to retire it, but the new robot will have a salvage value of $7,000. After discounting to the current value, these are included in the comparable yearly expenses.
To know more about the calculations of the AM value of defender, refer to the link below:
https://brainly.com/question/21178242
As flextime, consulting, telecommuting, and downsizing make it more difficult for
people to donate blood at the workplace, Canadian Blood Services has launched a
CRM marketing campaign in Toronto to boost awareness and repeat donations.
Early in the campaign, it went to its listings of previous donors and pulled out
those with birthdays in February, March, and April. These donors were sent a
birthday card with the greeting, "On the anniversary of your life, would you
consider saving another's life?"
Refer to the scenario.
What technique did the organization use to analyze its donor information?
Answer:
The technique which the organization used in analyzing its donor is called Customer segmentation
Explanation:
Customer segmentation is the process of breaking large groups of customers into smaller, more homogeneous groups. This division are done specifically probably for marketing using attribute such as age, gender, interests and spending habits.
In the case of the CRM marketing campaign in Toronto, they inability to analyze all the data they had poses a challenge hence they reason why they segmented their customers according to their birthday. And customers are reached out according to those whose birthday falls nearby.
Tanner-UNF Corporation acquired as a long-term investment $190 million of 8% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $160 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $170 million.
Required:
a. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021.
b. Prepare the journal entry by Tanner-UNF to record interest on December 31, 2021, at the effective (market) rate.
c. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? Why?
d. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for S190 million. Prepare the journal entry to record the sale.
Answer and Explanation:
a. Investment in bonds Dr, $190 million
To Discount on bond investment $30 million
To Cash $160 million
(Being purchase of investment is recorded)
b. Cash Dr, ($190 × 8% × 6 ÷ 12) $7.6 million
Discount on bond investment Dr, $0.4 million
To Interest revenue ($160 × 10% × 6 ÷ 12) $8 million
(Being interest on bonds is recorded)
c. The computation of investment in the December is shown below:-
Bond investment $190 million
Less: discount on bond investment ($30 - $0.4) -$29.6 million
Amortization cost $160.40 million
As the company reports fair value of $190 million in its balance sheet. Also the timing of selling and purchase the investment is decided by the management as there is a market value, available for sale securities, the market rate of return varies and the short term, as well as the long term securities, are also invested
d. Cash Dr, $190 million
Discount on Bonds investment Dr, $29.6 million ($30 million - $0.4 million )
Loss on sale of bonds Dr, $29.6 million
To Investment in bonds $190 million
(Being sale of bonds is recorded)
The simple rate of return is also called all of the following except ________. annual rate of return unadjusted rate of return accounting rate of return
Answer: annual rate of return
Explanation:
The simple rate of return is also called the unadjusted rate of return or the accounting rate of return.
The simple rate of return is calculated when the incremental net operating income for the year is taken and then divided by the initial investment.
It should be noted that it's not called the annual rate of return.