Bond X Is A Premium Bond Making Semiannual Payments. The Bond Has A Coupon Rate Of 9.9 Percent, A YTM (2024)

Business College

Answers

Answer 1

Answer:

1. What are the prices of these bonds today?

Price bond X = $1,179.88

Price bond Y = $841.03

2. What do you expect the prices of these bonds to be in one year?

Price bond X = $1,173.97

Price bond Y = $845.40

3. What do you expect the prices of these bonds to be in three years?

Price bond X = $1,160.70

Price bond Y = $855.50

4. What do you expect the prices of these bonds to be in eight years?

Price bond X = $1,116.95

Price bond Y = $891.24

5. What do you expect the prices of these bonds to be in 12 years?

Price bond X = $1,067.47

Price bond Y = $935.24

6. What do you expect the prices of these bonds to be in 16 years?

Price bond X = $1,049

Price bond Y = $1,039

I solved this using an Excel spreadsheet and the NPV function.

Related Questions

Compare: High Rate vs Snowball.

6. A standard repayment term for a home loan is 30 years, or 360 months. How long does it take you to repay your mortgage using this method?

Answers

Answer:

High Rate Vs Snowball

With this standard repayment of 30 years or 360 months, it means that it takes 30 years to repay the mortgage using the Snowball method and a shorter period (less than 30 years) to repay the mortgage using the High Rate method.

Explanation:

The Snowball method is a better method of repaying a loan. This method encourages paying off the loan with the smaller balance first instead of paying off the loan with the higher rate first. The only advantage of the High Rate method is that the loan is repaid quickly with less interest.

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP increases by $40. increases by $220. increases by $280. increases by $1500.

Answers

Answer:

increases by $220.

Explanation:

The computation of the GDP is shown below:

Since the amount of $220 spend on groceries from a local store

And, the other amounts like $1,500, $40 and $1,240 represent the imports so this would not be included in GDP

Therefore the GDP would be increased by $220

Here are selected 2017 transactions of Marigold Corporation.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $63,000 and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $6,000 cash.
Dec. 31 Sold a delivery truck for $9,130 cash. The truck cost $24,500 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,400 salvage value.

Required:
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable.

Answers

Answer:

Date Account and explanation Debit$ Credit$

Jan 1 Accumulated depreciation-Machine 63000

Machine 63000

June 30 Depreciation expense (37000/4)*6/12 4625

Accumulated depreciation-Computer 4625

(To record Dep)

June 30 Cash 6000

Accumulated depreciation-Computer 23125

(37000/4*2.5)

Loss on sale of computer 7875

Computer 37000

(To record sale of computer)

Dec 31 Depreciation expense (24500-3400/5) 4220

Accumulated depreciation-Delivery truck 4220

(To record Depreciation)

Dec 31 Cash 9130

Accumulated dep-Delivery truck 16880

Gain on sale of delivery truck 1510

Delivery truck 24500

(To record sale of computer)

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:__________
a. $11,492
b. $6,722
c. $6,303
d. $9,347

Answers

The correct options are

A)$4,332B)$3,734C)$3,072D)$5,086

Answer:

$5086

Explanation:

Total cost is defined as the amount spent in a production process which involves variable cost such as labour and raw materials which change with volume of production.

In addition fixed cost that remain constant with volume of production are also considered as part of total cost.

In the give scenario

Direct materials is $3,044

Direct labour cost is $15 * 46 = $690

Machine use cost $13 * 104 = $1,352

Total cost = 3,044 + 690 + 1,352 = $5,086

what are the 3 business sectors

Answers

Answer:

hello

Explanation:

i think primary,secondary,tertiary.

hope it helps

have a nice day

Answer:

An alternative analysis of economics, the three sector theory,subdivides them into

Explanation:

The primary sector (producing raw materials)

The secondary sector (carrying out manufacturing)

The tertiary sector (providing sales and services)

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow. Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 30,500 MH 3,600 MH Overhead costs $ 730,000 $ 590,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours Molding 5,100 MH 1,020 MH Trimming 2,600 MH 650 MH Direct labor hours Molding 5,500 DLH 2,150 DLH Trimming 700 DLH 3,500 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined plantwide overhead rate:

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

total estimated overhead costs for the period= $1,320,000

total amount of allocation base= 100,000

Predetermined manufacturing overhead rate= 1,320,000 / 100,000

Predetermined manufacturing overhead rate= $13.2 per direct labor hour

Now, we can allocate overhead to each product line:

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

Part A27C:

Allocated MOH= 13.2*(5,500 + 700)

Allocated MOH= $81,840

Part X82B:

Allocated MOH= 13.2*(2,150 + 3,500)

Allocated MOH= $74,580

The following income statements are provided for two companies operating in the same industry:
Felix Company
Jinx Company Revenue $ 200,000 $ 200,000
Variable costs (25,000 ) (70,000 )
Contribution margin 175,000 130,000
Fixed costs (70,000 ) (25,000 )
Net income $ 105,000 $ 105,000
Assuming sales increase by $1,000, select the correct statement from the following:
a) Felix's net income will be more than Jinx's.
b) Correct Only Felix will experience an increase in profit.
c) Felix's net income will increase by $250.
d) Jinx's net income will increase by 6%.

Answers

Answer: Felix's net income will be more than Jinx's.

Explanation:

Bases on the information given, Felix net income will be:

Sales = 201000

Less: Variable cost = 25125

Contribution margin = 175875

Less: Fixed cost = 70000

Net income = 105875

Answers

Answer:

See below

Explanation:

1. Plant wide overhead rate

= Total manufacturing overhead / Estimated cost allocation base

= $1,100,000/27,500

= $40

2. Compute department overhead rates

= Total department overhead / Estimated cost allocation base

Machining department

= $740,000/14,800

= $50 per MH

Fishing department

= $360,000/18,000

= $20 per DL

If a marketer wanted to find out which kinds of perfumes most women in a
large city prefer, which of these methods would be the most effective in
gathering data?
A. Survey
B. Focus group
C. Observation
D. Experiment

Answers

It would probably be A

If a marketer wanted to find out which kinds of perfumes most women in a large city prefer, the method that would be the most effective in gathering data is Survey. Thus the correct option is A.

What is the importance of data collection for marketers?

Data plays a significant role in formulating strategies and helps busines to achive higher revenue. The collected information and data help them to understand the fluctuations in the market and help to know the taste and preferences of customers.

The survey is referred to as a method of data collection in which a series of questions are asked to the people. These questions are related to the product and the response of individuals toward that.

This survey is taking place between a specified group of people where questions related to their group of interests are asked. In the given case, the marketer needs to ask about preferences in the kinds of perfumes illustrating the features of the survey.

Therefore, option A is appropriate.

Learn more about the survey, here:

https://brainly.com/question/28268462

#SPJ2

Bellue Incorporated manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,700 units. Fixed manufacturing overhead cost was $2 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year

Answers

Answer:

$101,700

Explanation:

The difference between Variable Costing Income and Absorption Costing Income is due to fixed costs that are deferred in Opening and Closing Inventory. So to calculate Absorption Costing Income we need to adjust

Variable Costing Income with the fixed cost in inventory through a reconciliation as follows :

Reconciliation of Variable Costing Income to Absorption Costing Income

Variable costing net operating income $96,300

Add Fixed cost in stock changes (2,700 x $2.00) $5,400

Absorption costing net operating income $101,700

Thus, the absorption costing net operating income last year is $101,700

Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.

Answers

Answer:

31-Dec

DrDepreciation expense$7,000

Cr Accumulated Depreciation - Equipment$7,000

31-Dec

Dr Interest receivable $1,750

Cr Interest revenue$1,750

31-Dec

Dr Deferred Revenue$4,000

Cr Revenue or Service Revenue$4,000

Explanation:

Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.

31-Dec

DrDepreciation expense$7,000

Cr Accumulated Depreciation - Equipment$7,000

(Being to adjust 12 month depreciation)

31-Dec

Dr Interest receivable ($50,000 x 7% x 6/12)$1,750

Cr Interest revenue$1,750

(Being to adjust 6 month interest revenue accrued)

31-Dec

Dr Deferred Revenue ($16,000 x 3/12)$4,000

Cr Revenue or Service Revenue$4,000

(Being to record earned revenue for 3 months)

In 2009 the Ford Motor Company announced plans to spend $490 million on
building a third car assembly plant in China
Briefly explain two likely reasons why the Ford Motor Company plans to build
a third car assembly plant in China

Answers

Answer:

Cheaper labor. Cheaper auto parts.

Explanation:

China has cheaper labor rates than the United States in comparative industries including in the motor vehicle producing industry. Ford may want to take advantage of this to make cars at a smaller cost in China and therefore make more profit in sales.

Car parts are also easier and cheaper to acquire in China. Steel for instance, is a very valuable commodity in motor vehicle manufacturing and China happens to be the largest producer in the world. Having access to cheaper materials would increase Ford's profitability as well.

Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January on this job were as follows: direct materials $23,400, direct labor $24,040, and manufacturing overhead $28,720. As Of January 2, Job NO. 49 had been completed at a cost of $205,300 and was part of finished goods inventory. There was a $27,550 balance in
the Raw Materials Inventory account.

During the month Of January, Deglman Manufacturing began production on Jobs 52 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $142,740 and $284,860, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of $105,300 on account.
2. Incurred factory labor costs of $81,900. Of this amount $18,720 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $19,890; indirect labor $23,400; depreciation expense on equipment $14,040; and various other manufacturing overhead costs on account $18,720.
4. Assigned direct materials and direct labor to jobs as follows.

Job No Direct Materials Direct Labor
50 $11,700 $5,850
51 45,630 29,250
52 35,100 23,400

Required:
Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.

Answers

Answer:

Degelman Company

Job Cost Sheets:

Job 50 Job 51 Job 52

Beginning balances:

Direct materials $23,400

Direct labor $24,040

Manufacturing overhead $28,720

Direct materials 11,700 $45,630 $35,100

Direct labor 5,850 29,250 23,400

Manufacturing overhead 7,605 38,025 30,420

Total cost of Job 50 $101,315 $74,880 $88,920

Explanation:

a) Data and Calculations:

Beginning WIP: Job 50

Direct materials $23,400

Direct labor $24,040

Manufacturing overhead $28,720

Total cost of Job 50 $76,160

Finished Goods Inventory:

Completed Job No. 49 at a cost of $205,300

Raw materials $27,550

Sales of Job 49 = $142,740

Sales of Job 50 = $284,860

Manufacturing overhead:

indirect materials $19,890;

indirect labor $23,400;

depreciation expense

on equipment $14,040;

other manufacturing

overhead costs $18,720

Total overheads $76,050

Applied Overhead:

Direct Labor Overhead Applied

Job 50 5,850 $7,605

Job 51 29,250 38,025

Job 52 23,400 30,420

Total $58,500 $76,050

Overhead rate = 76,050/58,500 = $1.30

A u.s navy recruiting center knows from past experience that the height of its recruits traditionally been distributed with mean 69 inches. The recruiting center wants to test the claim that the average height of this year's recruits is greater than 69 inches. To do so recruiting personnel to take a random sample of 64 recruits from this year and recorded their heights.
a. identify the null and alternate hypothesis.
b. Do the recruiters find support form the given claim at the 5% significance level.
c. Use sample date to calculate a 95% confidence interval for the average height .conclude?
Recruit Height
1 74.5
2 74.0
3 74.6
4 69.8
5 76.0
6 72.3
7 66.0
8 70.6
9 71.9
10 71.4
11 70.6
12 73.9
13 69.3
14 75.3
15 71.5
16 65.5
17 60.5
18 71.9
19 70.7
20 70.6
21 73.4
22 72.1
23 69.3
24 74.7
25 68.5
26 70.5
27 70.0
28 69.9
29 71.7
30 73.0
31 68.8
32 75.0
33 67.5
34 71.3
35 69.5
36 65.3
37 74.8
38 70.5
39 71.5
40 67.6
41 69.1
42 72.1
43 72.8
44 68.3
45 71.8
46 67.1
47 72.3
48 70.7
49 70.4
50 69.1
51 70.8
52 71.6
53 73.6
54 64.8
55 68.5
56 68.5
57 74.3
58 66.5
59 74.8
60 74.1
61 71.6
62 66.3
63 67.1
64 71.7

Answers

Answer:

A)The Null hypothesis ; H0 : u ≤ 69

The Alternate hypothesis ; H1 : u ≥ 69

B) The recruiting center claim is found at 5% significance level

C) ( 69.9488, 71.4512 )

Explanation:

A) Identify the null and alternate hypothesis

since the recruiting center is trying to test if the average height of the year's recruit is > 69. hence

The Null hypothesis ; H0 : u ≤ 69

The Alternate hypothesis ; H1 : u ≥ 69

B) Determine if the recruiters find support from the given claim at the 5% significance level

As a single tailed test we will calculate the mean and standard deviation first using MS excel

mean ( X ) = 70.7

standard deviation ( s ) = 3.02

next we will calculate the test statistic using the formula below

t = [tex]\frac{X-u}{s/\sqrt{n} }[/tex] = [tex]\frac{70.7-69}{3.02/\sqrt{64} }[/tex] = 4.503

next we will determine the P-value using MS excel

t = 4.503 , n = 64

df ( degree of freedom ) = n - 1 ( for a one tailed test )

= 64 - 1 = 63

hence the p-value at 63 degree of freedom = 0.0000148 ( using MS excel )

The p - value < significance level hence Null hypothesis is rejected while Alternate hypothesis is accepted.

The recruiting center claim is valid at 5% significance level

C) using sample data to calculate a 95% confidence interval for the average

The 95% confidence interval for the mean value u = ( 69.9488, 71.4512 )

Therefore The claim made is a reasonable one

attached below is a detailed solution

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $21,000; accounts receivable, $16,000; inventory, $30,000; equipment (net), $85,000; accounts payable, $19,000; salaries payable, $7,500; interest payable, $3,500; notes payable (due in 18 months), $35,000; common stock, $60,000. Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $150,000.

Answers

Answer:

Some information must be missing, maybe retained earnings, since the balance sheet does not balance.

Assets

Current assets

Cash $21,000

Accounts receivable $16,000

Inventory $30,000

Total current assets $67,000

Non-current assets

Equipment $150,000

Acc. depreciation ($65,000)

Total non-current assets $85,000

Total assets $152,000

Liabilities

Current liabilities

Accounts payable $19,000

Salaries payable $7,500

Interest payable $3,500

Total current liabilities $30,000

Long term liabilities

Notes payable $35,000

Total liabilities $65,000

Stockholders' equity

Common stock $60,000

Total stockholders' equity $60,000

Total liabilities + equity $125,000

(missing something)

ZipCar auto parts store has $92,000 to invest in a project to detect and reduce insier theft in their stores. They have considering investing in one of two alternatives, identified as Y and Z. Z is the higher first-cost alternative, and the incremental initial investment between the two is $34,000 and will exhibit a rate of return of 20% per year. Z requires an investment of $92,000. They expect a rate of return on the S92000 investment of 34 percent. Answer the following questions:
(a) what is the size of the investment required in Y?, and,
(b) what is the rate of return on Y?
The size of the investment required in Y is________.
The rate of return on Y is__________.

Answers

Solution :

a). The investment size -- Y

As we know, Z has higher a first cost alternative and also the incremental difference is 34,000. Therefore, the investment of Y is lower than that of Z by 34,000. Thus, the investment of Y = $ 92,000 - $ 34,000

= $ 58,000

b). Rate of return for Y

The question also mentions that the incremental 34,000 returned only 20 % while Z cumulatively generated 34%

Therefore, 34,000 at the rate of 20% return = [tex]$34000 \times \frac{120}{100} = 40,800$[/tex]

92,000 at the rate of 34% return = [tex]$92000 \times \frac{134}{100} = 123,280$[/tex]

The difference between the 92,000 and 32,000 is the investment of Y i.e. 58,000. Thus we check the difference between the 40800 and 123280 to find out how much 58000 (Y's investment ) would have generated.

123480 - 40800 = 82,480

[tex]$\frac{82480}{58000}-1 = 0.420269$[/tex]

Therefore, the return of Y is 42.03%

You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money from petty cash to purchase that item.
One day, you are short on cash for lunch. You decide to borrow $10 each day for the next 3 days until payday for a total of $30 from petty cash. After payday, you do not have enough to repay petty cash, so you decide to record a cash short/over expense of $30.

Respond to the following in a minimum of 175 words:

Since this is the first time you have ever done this, is this a problem?
If so, what steps should be taken to fix this problem? If not, why not?

Answers

Answer:

Since this is the first time you have ever done this, is this a problem?

Of course this is a problem, you stole money. Stealing money is not right and it is a problem. If someone finds out, you will lose your job. legally, you could also be prosecuted, but the amount is very little. Another problem is that if you are able to go unpunished and no one finds out, this behavior will continue until you cannot hide it anymore. By then , the amount might be larger, not just a few dollars, and you will be in deep trouble.

If so, what steps should be taken to fix this problem? If not, why not?

Pay back the money you took. Simple as that. Sometimes, doing the correct thing is not difficult. Do not spend money on unnecessary things and pay the $30. Do it before this becomes a bad habit and you get into serious trouble that seriously damage your career. No company will hire someone fired for stealing money form their previous employer.

38. Mary Catherine, an international student from Ireland, has a Form W-2 that shows amounts withheld for Social Security and Medicare taxes. Mary Catherine is an F-1 student who first arrived in the U.S. in 2018. What form should Mary Catherine use to claim a refund of her Social Security and Medicare taxes withheld

Answers

Answer: Form 843

Explanation:

As a taxpayer, Mary can use Form 843 to claim a refund of her Social Security taxes. First she tried to obtain the refund through her employer and should this fail, she should fill out a form 843 and submit it to get help on the claim.

The form can also be used to get an abatement on FUTA taxes as well as a refund of interest, penalties, or additions to taxes.

i develop my abilities through

Answers

Practice is where you get your abilities

On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight-line method. On January 1, 20x1, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. Use tables (PV of 1, PVAD of 1, and PVOA of 1 (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Required:
1. Why is this an operating lease for Child Company?
2. What are the amounts of the right-of-use asset and lease liab that Child Company should report on its balance sheet at December 31, 20X1?
3. How much lease expense should Child Company recognize in 20X1?

Answers

Answer:

1. Why is this an operating lease for Child Company?

The life of the asset is 10 years while the lease is only 3 years long, so it cannot be classified as a financial lease.

2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 20X1?

annual lease payment = $128,000 (ordinary annuity)

PVIFA, 9%, 3 periods = 2.5313

present value = $128,000 x 2.5313 = $324,006.40

3. How much lease expense should Child Company recognize in 20X1?

lease expense = PV of lease x interest rate = $324,006.40 x 9% = $29,160.58

Inflation, nominal interest rates, and real rates. From 1991 to 2000, the U.S. economy had an annual inflation rate of around %. The historical annual nominal risk-free rate for this same period was around %. Using the approximate nominal interest rate equation and the true nominal interest rate equation, compute the real interest rate for that decade. What is the estimated real interest rate using the approximate nominal interest rate equation for that decade?

Answers

Answer:

the question is incomplete:

nominal interest rate = 5.07%

real interest rate = ?

inflation rate = 3.45%

approximate real interest rate = 5.07% - 3.45% = 1.62%

real interest rate = [(1 + 5.07%) / (1 + 3.45%)] - 1

real interest rate = (1.0507/1.0345) - 1 = 1.57%

Skysong Corporation had income from continuing operations of $10,811,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $205,400. Prior to disposal, the division operated at a loss of $319,800 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Skysong had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Skysong beginning with income from continuing operations.

Answers

Answer:

Net income $10,285,800

Earnings per share $1.03

Explanation:

Preparation of a partial income statement for Skysong beginning with income from continuing operations.

Income from continuing operations $10,811,000

Discontinued operations

Loss from operation of discontinued

restaurant division (net of tax)

$319,800

Loss from disposal of restaurant

division (net of tax)

$205,400

Net income $10,285,800

($10,811,000-$319,800-$205,400)

EARNING PER SHARES

Income from continuing operations $1.08

($10,811,000/10,000,000 shares)

Less Discontinued operations, net of tax (0.05)

[($319,800+$205,400)/$10,285,800]

Net income $1.03

($1.08-0.05)

When a parent company sells land to a subsidiary at more than book value, the consolidation entries at the end of the period include a debit to the gain on the sale of land. When a parent purchases the bonds of a subsidiary from a nonaffiliate at less than book value, the consolidation entries at the end of the period contain a credit to a gain on bond retirement. Why are these two situations not handled in the same manner on the consolidation worksheet

Answers

Answer:

The reasons for these two situations not handled similarly are:

1. The first case involving the sale of land is a transaction between a parent and its subsidiary. Their accounts are consolidated with gains from intercompany transactions eliminated because a parent company cannot recognize gains from sales to itself (group). This implies that all intercompany gains can only be recognized when the sales involve external or non-affiliated entities.

2. In the second case, there is no parent-subsidiary relationship since one organization is described as a non-affiliate. Therefore, there is no need to eliminate the intercompany profit arising from the transaction. Instead, the gain is recognized.

Explanation:

The accounts of companies that are under common control are consolidated by the parent entity. Therefore, during the consolidation process, it becomes necessary to eliminate all intercompany transactions that have not been externally affected.

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $19 million, and production and sales will require an initial $5 million investment in net operating working capital. The company's tax rate is 25%. Enter your answers as a positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places. What is the initial investment outlay

Answers

Answer:

$24 million

Explanation:

Initial investment outlay includes the cost of the new manufacturing equipment and the net operating working capital.

Initial investment outlay = cost of the new manufacturing equipment + net operating working capital.

$19 million + $5 million = $24 million

The wireless phone manufacturing division of a consumer electronics company uses activity-based costing. For simplicity, assume that its accountants have identified only the following three activities and related cost drivers for indirect production costs: Activity Cost Driver Materials handling Direct-materials cost Engineering Engineering change notices Power Kilowatt hours Three types of cell phones are produced: Senior, Basic, and Deluxe. Direct costs and cost-driver activity for each product for a recent month are as follows: Senior Basic Deluxe Direct-materials cost $25,000 $ 60,000 $135,000 Direct-labor cost $14,546 $ 3,762 $ 6,772 Kilowatt hours 230,000 220,000 100,000 Engineering change notices 21 20 69 Indirect production costs for the month were as follows: Materials handling $ 15,400 Engineering 99,000 Power 11,000 Total indirect production cost $125,400 1. Compute the indirect production costs allocated to each product with the ABC system. 2. Suppose all indirect production costs had been allocated to products in proportion to their direct labor costs. Compute the indirect production costs allocated to each product. 3. In which product costs, those in requirement 1 or those in requirement 2, do you have the most confidence

Answers

Answer:

1. The indirect production costs allocated to each product with the ABC system:

Senior Basic Deluxe Total

Total indirect production cost $25,250 $26,600 $73,550 $125,400

2. The indirect production costs allocated to each product with direct labor costs:

Senior Basic Deluxe Total

Total indirect production cost $72,730 $18,810 $33,860 $125,400

3. I repose much more confidence in the product costs according to requirement 1.

Explanation:

a) Data and Calculations:

Activity Cost Driver

Materials handling

Direct-materials cost

Engineering Engineering

Senior Basic Deluxe Total

Direct-materials cost $25,000 $ 60,000 $135,000 $220,000

Direct-labor cost $14,546 $ 3,762 $ 6,772 $25,080

Kilowatt hours 230,000 220,000 100,000 550,000

Engineering change notices 21 20 69 110

Indirect production costs:

Materials handling $ 15,400 $15,400/$220,000 = $0.07

Engineering 99,000 $99,000/110 = $900

Power 11,000 $11,000/550,000 = $0.02

Total indirect production cost $125,400

Overhead Senior Basic Deluxe

Rates

Materials handling $0.07 $1,750 $4,200 $9,450

Engineering $900 18,900 18,000 62,100

Power $0.02 4,600 4,400 2,000

Total indirect production cost $25,250 $26,600 $73,550

Allocation based on direct labor costs:

Predetermined rate = $5 per direct labor cost.

Senior Basic Deluxe Total

Total indirect production cost $72,730 $18,810 $33,860 $125,400

Name some of the faculties of Nepal Sanskrit University?

Answers

Explanation:

Agricultural Engineering

Answer:

Veda, Philosophy, astronomy, yoga, homeopathy, naturopathy, history, Buddha Darshan etc

Karen is a trusted employee whose productivity declines as she works more and more hours each day. After careful observation of her work performance, her manager prepared the following chart. Daily Number of Hours Worked by Karen / Total Numbers of Work Units Completed 1/100 2/190 3/270 4/340 5/400 6/450 7/480 8/500 Karen's total cost to the firm is $11 per hour. Each work unit completed is worth $0.21 to the firm. Ignoring all other possibilities and considerations, for how many hours should the firm hire Karen per day

Answers

Answer:

5 hours

Explanation:

Total Cost = A x $11 per hr

Worth for the Firm = Number of units produced * Worth per unit

Benefit = D - C

Hours Units Produced Total Cost Worth for the Firm Benefit

1 100 11 21.00 10.00

2 190 22 39.90 17.90

3 270 33 56.70 23.70

4 340 44 71.40 27.40

5 400 55 84.00 29.00 (More benefit)

6 450 66 94.50 28.50

7 480 77 100.80 23.80

8 500 88 105.00 17.00

You work for NCP, New Century Properties, in Portland, Oregon. Your employer specializes in commercial real estate. Yesterday one of your business tenants in the trendy NW 23rd neighborhood complained about problems with an iron gate you had installed by Castle Iron Works just six months earlier, on August 20. Apparently, the two doors of the gate have settled and don’t match in height. The gate gets stuck. It takes much force to open, close, and lock the gate. The iron gate was painted, and in some spots rust is bleeding onto the previously pristine white paint. The tenant at 921 NW 23rd Ave., Portland, OR 97210 is a petite shop owner, who complained to you about struggling with the gate at least twice a day when opening and closing her store.
You realize that you will have to contact the installer, Castle Iron Works, and request that the company inspect the gate and remedy the problem. Only six months have passed, and you recall that the warranty for the gate was for one year. To have a formal record of the claim, and because Castle Iron Works does not use e-mail, you decide to write a claim letter.

Answers

Solution :

To,

John Gordon,

Castle Iron Works,

256 NW Fox Street,

Portland

Date : 16th Feb 2021

Subject : NW 23rd neighborhood Iron Gate not working properly which is within warrantee period.

Dear Sir,

One of our tenant at 921 NW 23rd Avenue, Portland, or 97210 has complained about the iron gate that was installed by Castle Iron Works. The doors was installed on the 20th of August and so it is within warrantee period for a one year. Please find the enclosed herewith the copy of the invoice of the Castle Iron Works.

The customer had complaint that the two gates does not match in height and the owner is finding difficulty in closing and opening the gate. Also to mention , in some parts of the iron gate is seen with some rust bleeding.

Therefore you are requested to inspect the gate immediately and please provide remedy for the issue.

Thanking You

For NCP, New Century Properties

Portland, Oregon.

Roe Corporation owns 2,000 shares of WRJ Corporation stock. WRJ Corporation has 25,000 shares of stock outstanding. WRJ paid $4 per share in cash dividends to its stockholders. The entry to record the receipt of these dividends is:

a. Debit Cash, $8,000; credit Long-Term Investments, $8,000.
b. Debt Long-Term Investment, $8,000; credit Cash, $8,000.
c. Debit Cash, $8,000; credit Dividend Revenue, $8,000.
d. Debit Unrealized Gain-Equity, $8,000; credit Cash, $8,000.
e. Debit Cash, $8,000; credit Unrealized Gain-Equity, $8,000.

Answers

Answer:

c. Debit Cash, $8,000; credit Dividend Revenue, $8,000

Explanation:

In the given scenario the number of shares owned by Roe Corporation is 2,000 shares out of a total of 25,000 shares.

So when dividend of $4 is given per share, Roe will have dividend of

Dividend = Number of shares * Dividend per share

Dividend = 2000 * 4

Dividend = $8,000

The entry to indicate reciept of the dividend will be Debit Cash, $8,000; credit Dividend Revenue, $8,000

Cash is an asset account. It increases as the debit balance increases.

So a reciept of $8,000 from the shares owned will result in a cash increase. Therefore cash is debited $8,000

Dividend revenue is a revenue account that increases as positive balance increases.

When the share dividend is recieved revenue increases.

Therefore we will credited Dividend revenue by $8,000 to recognise the increase in revenue

The following information was provided by Dylan Manufacturing: Work in process increased by $19,000. Finished goods inventory decreased by $33,000. Direct materials used totaled $54,000. Direct labor incurred totaled $42,000. The predetermined manufacturing overhead rate was $27.00 per machine hour. Actual manufacturing overhead totaled $77,000. The estimated machine-hours were 3,000 hours and the actual machine-hours was 2,800 hours. How much is the cost of goods sold before any adjustment for overapplied or underapplied overhead

Answers

Answer:

$185,600

Explanation:

Direct materials $54,000

Direct labour $42,000

Predetermined OH $75,600 (2800*$27)

Cost of goods manufactured $171,600

Cost of goods sold = Cost of goods manufactured + WIP increase - Finished good decrease

Cost of goods sold = $171,600 + (-$19,000) + $33,000

Cost of goods sold = $185,600