Given the acquisition cost of product Z is $64, the net realizable value for product Z is $58, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $60, what is the proper per unit inventory price for product Z?
a. $64.
b. $60.
c. $53.
d. $58.

Answers

Answer 1

Answer:

option (d) $58

Explanation:

Data provided in the question:

Acquisition cost of product Z = $64

Net realizable value for product Z = $58

Normal profit for product Z = $5

Market value (replacement cost) for product Z = $60

Now,

Floor Net realizable value = Net realizable value - Normal profit

= $58 - $5

= $53

Proper per unit inventory price for product Z

= lower of [ cost , net reliable value ]

=  lower of [ $64 , $58 ]

= $58

Hence,

The answer is option (d) $58


Related Questions

You are managing a project to build an urgent care clinic. Your company is expanding and has constructed 25 clinics so far. Which estimating technique makes the most sense to use in this situation:
Select an answer:
A. Parametric modeling
B. Delphi technique
C. Top-down estimating
D. Asking an expert

Answers

Answer:

B. Delphi technique

Explanation:

Delphi technique is considered the best way as it helps in estimating the cost and forecast also, For constructing 25 clinics estimate is the biggest function to build the clinics.

Answer:

B. Delphi technique is the correct answer.

Explanation:

The Delphi Technique is a method used to estimate the likelihood and outcome of future events. A group of experts exchange views, and each independently gives estimates and assumptions to a facilitator who reviews the data and issues a summary report.

If the price that determined where marginal revenue equaled marginal cost were below the bottom of the average variable cost curve, then the profit- maximizing, monopolistically competitive firm would produce an output amount where marginal cost equals marginal revenue and make a small profit. produce an output amount that corresponded to the place where average total cost equals average variable cost and incur a small loss. shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs. produce an output amount that corresponded to the place where marginal cost equals marginal revenue and break even. produce an output amount that corresponded to the place where marginal cost equals marginal revenue, but make a small loss.

Answers

Answer:

c) c) shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs.

Explanation:

The question seems not to have a correct format, googling a little bit you can find that it is composed by several options that in this case were not specified. Then, the question would look like this:

If the price that determined where marginal revenue equaled marginal cost were below the bottom of the average variable cost curve, then the profit- maximizing, monopolistically competitive firm would:

a) produce an output amount where marginal cost equals marginal revenue and make a small profit.

b) produce an output amount that corresponded to the place where average total cost equals average variable cost and incur a small loss.

c) shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs.

d) produce an output amount that corresponded to the place where marginal cost equals marginal revenue and break even.

e) produce an output amount that corresponded to the place where marginal cost equals marginal revenue, but make a small loss.

And the correct answer is c). It is necessary for the company to close production in order to recover losses from fixed costs, because the price is  lower than average variable cost.

In other words, the company loses less by closing (fixed costs), than by operating (fixed costs + variable costs).

Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.a. Calculate each country's productivity and real GDP per person.b. Which country is better off?

Answers

Answer:

a) Productivity of country A = 20 goods per hour

Productivity of country B = 25 goods per hour

Real GDP per person for country A = 128 goods per person

Real GDP per person for country B = 135 goods per person

b) Country B is better off

Explanation:

Data provided in the question:

For country A

Population = 1,000

Number of workers = 800

Number of working hour per day = 8

Final goods = 128,000

For country B

Population = 2,000

Number of workers = 1,800

Number of working hour per day = 6

Final goods = 270,000

Now,

(a) The Productivity is given as

= [ Total Output ÷ Total Productive Hours ]

Thus,

Productivity of country A

= [ 128,000] ÷ [ 800 × 8 ]

= 20 goods per hour

Productivity of country B

= [ 270,000 ] ÷ [ 1800 × 6 ]

= 25 goods per hour

and,

Real GDP per person = [ Final goods ] ÷ [ Population ]

Real GDP per person for country A

= 128000 ÷ 1000

= 128 goods per person

Real GDP per person for country B

= [ 270000 ] ÷ 2000

= 135 goods per person

(b) Since,

The Real GDP per person for country B is greater than the Real GDP per person for country A

Therefore,

Country B is better off

Final answer:

The productivity and real GDP per person for Country A and Country B were calculated and compared. It was found that County B has a higher productivity and real GDP per person making it the better off country based on these metrics.

Explanation:

Productivity is calculated as the total output divided by the total input. For Country A, we calculate productivity as 128,000 final goods divided by (800 workers * 8 hours), which results in a productivity of 20 goods produced per man-hour. For Country B, we use the same method, and calculate productivity as 270,000 goods divided by (1,800 workers * 6 hours) which gives us a value of 25 goods produced per man-hour. Therefore, Country B is more productive on a per hour basis.

Real GDP per person is calculated as the total output divided by the population. For Country A, real GDP per person is calculated by dividing 128,000 goods by 1,000 residents, which equals 128 goods per person. For Country B, we calculate real GDP per person by dividing 270,000 goods by 2,000 residents, which equals 135 goods per person. Again, Country B is better off.

So, based on these calculations, Country B is more productive and has a higher real GDP per person. However, it's important to note that this calculation doesn't take other factors such as income inequality, environmental factors, etc into account.

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Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:

Answers

Answer:

The correct answer is Option (3): The number of additional competitors is very small.

Explanation:

Competitors can come together to engage in price fixing, which is either a verbal or written agreement between the firms to either raise, lower or maintain prices of products at a given time. Some government laws encourage firms to set their own prices by themselves without any form of agreement with another firm in the same or similar line of business.  Sometimes, these competitors can fix prices of goods in secret and these government bodies do term the act illegal.  

These price fixing activities are usually being carried out effectively “in secrete” when other competitors are very small.  

Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people attended the class. From the midpoint method, the price elasticity of demand for Zumba is:
A. 0.50.B. 3.33.C. 2.50.D. 0.20.E. 0.20

Answers

The price elasticity of demand calculated using the midpoint method in this scenario is -0.50. Nonetheless, it's significant to note that elasticity is often considered in terms of absolute value for its magnitude's relevance; hence, the answer might need to be reassessed.

The question requires us to apply the midpoint method to calculate the price elasticity of demand which is an advanced principle of economics. The midpoint method calculates the percentage change in quantity and price using the average of the original and new quantity and price levels. Accordingly, we can calculate the price elasticity of demand as follows:

(% Change in Quantity demanded) / (% change in price). In the given scenario, we can calculate the price elasticity as follows:

(Change in Quantity / Average Quantity) / (Change in Price / Average Price)

( (20 - 10) / ((20 + 10) / 2) ) / ((5.50 - 4.50) / ((5.50 + 4.50) / 2))

After solving the above-made equation, it gives the price elasticity of demand as -0.50. The negative sign here indicates an inverse relationship meaning demand for Zumba classes decreases as the price increases, which generally happens in the case of normal goods. Given the options, however, this value is not valid; the correct answer should likely be expressed in terms of absolute value, as elasticity is typically considered as a positive figure given its magnitude importance. Do double-check the values provided.

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Key Company is considering the addition of a new product to its current lines. The expected cost and revenue data for the new product are as follows :Annual Sales : 2500 unitsSelling Price Per Unit : $304Variable Cost Per Unit :Production : $125Selling : $49Avoidable Fixed Cost Per Year :Production : $50,000Selling : $75,000Allocating common corporate cost per year : $55,000If the new product is added, the combined contribution margin of the other , existing product lines is expected to drop $65,000 per year, the common corporate costs would be unaffected by decision of whether to add the product. If new product is added next year, the increase in net operating income from this decision would be :A) 325,000 B) 200,000 C) 145,000 D) 135,000 E) None

Answers

Answer:

D) 135,000

Explanation:

The increase in net operating income would be

= Contribution margin per unit × number of units sold - production fixed cost - selling fixed cost - expected drop in contribution margin

= $130 × 2,500 units - $50,000 - $75,000 - $65,000

= $325,000 - $50,000 - $75,000 - $65,000

= $135,000

The contribution margin per unit would be

= Contribution margin per unit = Selling price per unit - Variable expense per unit

= $304 - $125 - $49

= $130

Which of the following statements is right about facility location analysis?

A. Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.
B. Facility location analysis considers the competitive imperative of lowest total cost.
C. Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.
D. Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels. All of the above.

Answers

Answer:

The correct answer is letter "A": Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Explanation:

Facility location is part of the research and computational geometry in charge of determining the localization of a company's branches to be closest as possible to the firm's target customers, workers, and suppliers by minimizing the costs. Other factors such as free trading zones or environmental policies are also taken into consideration.

The Fed’s monetary policy tools directly impact the supply of money in a major way through their ______________.

Answers

Answer:

open market operation

Explanation:

Open market operation is the mechanism of Fed to alter money supply. To increase the money supply, Fed will buy financial securities such as Treasury bills from large banks or security dealers so there is more money deposit in the account of those who buy securities from Fed. Thus, there is more money available for loan hold by the banks resulting in an increase in the money supply. Fed does otherwise to reduce the money supply.

Suppose that the MPC is 0.7, there is no investment accelerator, and there are no crowding-out effects. If government expenditures increase by $30 billion, then aggregate demand a. shifts rightward by $100 billion. b. shifts rightward by $51 billion. c. shifts rightward by $170 billion. d. shifts rightward by $72.8 billion.

Answers

Answer:

a. shifts rightward by $100 billion

Explanation:

Step 1. Given information.

MPC = 0.7

Step 2. Formulas needed to solve the exercise.

Impact in the aggregate demand = 1 / (1-mpc) * total increase expenditures.

Step 3. Calculation.

Impact in the aggregate demand = 1 / (1-0.7) * 30 million = 100 billion

Step 4. Solution.

What actually occurs is that if government increases its expenditures, this means that the output levels in the economy will increase.

Thus, aggregate demand curve will shift right  the overall increase by 100 billions.

The diamond framework is NOT LIKELY to answer which of the following questions about competing on an international basis? A. Where will the foreign entrants come from?B. Which countries have the weakest foreign rivals?C. What are the attributes of a country's business environment?D. What location of value chain activities is most beneficial?E. What are the disadvantages of allowing foreign competition?E. What are the disadvantages of allowing foreign competition?

Answers

Answer:

E

Explanation:

The diamond framework is one of the five major strategic options for entering foreign markets and it is not likely to answer questions on What are the disadvantages of allowing foreign competition?

Final answer:

The diamond framework does not directly address the disadvantages of allowing foreign competition, as it is designed to analyze competitive advantages of nations. It focuses on where foreign entrants may originate, identification of weak foreign rivals, attributes of a country's business environment, and beneficial locations for value chain activities.

Explanation:

The diamond framework is a conceptual model that helps to analyze the competitive advantages of nations, focusing primarily on four aspects: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. When considering the diamond framework, it is not likely to answer the question about the disadvantages of allowing foreign competition (E). This is because the framework is designed to assess and identify the competitive advantages of a country in the global marketplace, rather than focusing on the negative aspects of foreign competition.

Questions that the diamond framework can typically address include identifying where foreign entrants may come from, which countries have the weakest foreign rivals, the attributes of a country's business environment, and where along the value chain activities should be located to be most beneficial. Additionally, it might address overall patterns of international competition and trade, such as the attraction of capital and labor, and the economic impact of free market economies.

A single stock futures contract on a nondividend-paying stock with current price $180 has a maturity of one year.


a. If the T-bill rate is 4.0%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price $

b. What should the futures price be if the T-bill rate is still 4.0% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

c. What if the interest rate is 6.5% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

Answers

Answer:

a. $187.20.

b. $202.48.

c. $217.43.

Explanation:

Please find the below for detailed explanations and calculations:

We have the formula for determining the future price of the non-dividend-paying stock as below:

Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.

Thus, apply the general formula above, we have the below calculations:

a. Future price = 180 x (1+4%)^1 = $187.20;

b. Future price = 180 x ( 1+4%)^3 = $202.48;

c. Future price = 180 x (1+6.5%)^3 = $217.43.  

Purple, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Purple also owns 40% of Green, a domestic corporation. Purple receives no distributions from any of these corporations. Which of these entities' net income is included in Purple's GAAP income statement for current-year financial reporting purposes?
a.Purple, Blue, and Yellow.
b.Purple, Yellow, and Green.
c.Purple, Blue, Yellow, and Green.
d.Purple, Blue, and Green.

Answers

Answer: a.Purple, Blue, and Yellow.

Explanation: he does not have a controlling interest in green yet because it's percentage of control is still below 50% so it cannot report green's income.

Annual demand for a new assembled product is expected to be 80,000 units. Work content time for the product is 22.7 min. The assembly line operates 50 wk/yr, 40 hr/wk. Expected line efficiency is 95%. With one worker per station, determine (a) average hourly production rate, (b) cycle time, and (c) ideal minimum number of workers.

Answers

Answer:

average hourly production = 40 units

cycle time = 1.425 min

ideal minimum number of work = 16 worker

Explanation:

given data

annual demand for product = 80,000 units

Work content time = 22.7 min

work for week = 50 wk/yr

no of hr/week = 40 hr/wk

efficiency = 95% = 0.95

to find out

average hourly production rate and cycle time and ideal minimum number of worker

solution

we get here average hourly production rate that is express as

average hourly production = [tex]\frac{Da}{50H}[/tex]  ........1

average hourly production = [tex]\frac{80000}{50*40}[/tex]  

average hourly production = 40 units

and

cycle time is

cycle time = [tex]\frac{60*efficiency}{average\ hourly\ production}[/tex]

cycle time = [tex]\frac{60*0.95}{40}[/tex]

cycle time = 1.425 min

and

ideal minimum number of work is

W = minimum integer ≥ [tex]\frac{time}{cycle\ time}[/tex]

W = minimum integer ≥ [tex]\frac{22.7}{1.425}[/tex]

ideal minimum number of work = 15.93 = 16 workers

Piercing the corporate veil means revealing to shareholders the internal rules of corporate management.

a. True
b. False

Answers

False because piercing the corporate veil means removing the limited liability from a corporation

Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) Current Year Prior Year Short-term investments $ 380,834 $ 240,061 Accounts receivable 103,020 106,337 Notes payable 0 94,802

Answers

Answer:

Explanation:

The computation is shown below:

                                           (A)                        (B)                  (A - B)

                                        Current Year       Prior Year        Dollar change

Short-term investments  $380,834            $240,061         $140,773

Accounts receivable      $103,020              $106,337        -$3,317

Notes payable                 $0                         $94,802        -$94,802

Now the percentage change would be

= (A - B) ÷ (B) × 100

For Short-term investments = 58.64%

For Accounts receivable = - 3.12%

For Notes payable = - 100%

Final answer:

To calculate the annual changes, subtract the prior year value from the current year value. Then divide that number by the prior year value and multiply by 100 to get the percent change. Results show increases in Short-term investments and decreases in Accounts receivable and Notes payable.

Explanation:

To compute the annual dollar changes and percent changes for each account, we subtract the prior year value from the current year value to get the dollar change. Then, we divide the dollar change by the prior year value and multiply by 100 to get the percent change.

For Short-term investments, the dollar change is $380,834 - $240,061 = $140,773. The percent change is ($140,773 / $240,061) * 100, which gives approximately 58.6%.For Accounts receivable, the dollar change is $103,020 - $106,337 = -$3,317 (a decrease). The percent change is (-$3,317 / $106,337) * 100, which gives approximately -3.1%.For Notes payable, the dollar change is $0 - $94,802 = -$94,802 (a decrease). Since there was no balance in the current year, the percent change is not applicable here.

On January 1, 2017, Larkspur Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Larkspur Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Larkspur Company sold the bonds for $409,094 after receiving interest to meet its liquidity needs.

Prepare the amateur eyes is your schedule for the bonds.

Answers

Answer:

Period Carrying    coupon Interest Amortization End Carrying

July 2017  407,614  22000 24456.84  2456.84 410,071

Dic  2017   410,071  22000 24604.25  2604.25 412,675

July 2018  412,675  22000 24760.51    2760.51 415,436

Dec 2018  415,436  22000 24926.14    2926.14 418,362

Loss on sale 9,268

Explanation:

The interest expense will be determinate as the market rate times carrying value

Then, it will amortize between the difference in the actual cash payment and the interest expense calculate with the market rate

The carrying value will increase over time as it needs to match the face value at maturity.

Then after Dec 31 2019 we sale the bond and we determinate the loss on sale:

418,362 - 409,094 = 9,268

Using cost analysis to analyze the money being spent by a firm is analogous to using ____________ to analyze the money coming into the firm.A. sales analysis
B. traditional accounting reports
C. performance analysis
D. the iceberg principle
E. TQM methods

Answers

Answer:

A. sales analysis

Explanation:

A sales analysis is a common breakdown of sales, where a company can see how many products or services has it sold over a given period of time.

Like cost analysis is useful for determining which costs can be cut down and which ones are justified, a sales analysis determines which product segment brings in the most revenue, creating an incentive for improvement.

During 2020, Harvey Industries reported cash provided by operations of $670,000, cash used in investing of $1,039,000, and cash used in financing of $145,000. In addition, cash spent for fixed assets during the period was $404,000. No dividends were paid. Based on this information, what was Harvey's free cash flow?

Answers

Answer:

$266,000

Explanation:

The formula to compute the free cash flow is shown below:

Free Cash flow = Operating cash flow - capital expenditure

                         = $670,000 - $404,000

                         = $266,000

The operating cash flow is come from cash provided by operations and capital expenditure is the cash spent for fixed assets

All other information which is given is not relevant. Hence, ignored it

Commerce Corporation has a high probability of operating at 46,000 activity hours during the upcoming period, and lower probabilities of operating at 36,000 hours and 56,000 hours. The company's flexible budget revealed the following: 36,000 Hours 46,000 Hours 56,000 Hours Variable costs $ 162,000 $ 207,000 $ 252,000 Fixed costs 880,000 880,000 880,000 Commerce’s flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is: (Round intermediate calculations to 2 decimal places.)

Answers

Answer:

Y = $4.50 AH + $880,000

Explanation:

Hours                            36,000      46,000        56,000

Var. Cost                      $162,000   $207,000   $252,000

Var. Cost per hour (*)     $4.50         $4.50          $4.50

Fixed cost                    $880,000  $880,000   $880,000

---------------------------------------------------------------------------------

(*) Var. Cost per hour = Var. Cost / Hours

Y = $4.50 AH + $880,000

Hope this helps!

Following her 18th birthday, Madison began investing $24 at the end of each week in an account earning 7% per year compounded weekly. She plans to continue making weekly investments until she turns 68. If she had waited until she turned 47, how much would she have to invest weekly in order to have the same retirement nest egg at age 68? Round to the nearest cent. (Hint: Find the size of the retirement nest egg, then use that to solve for CF under the shorter investment scenario)

Answers

Answer:

The answer is $26.80.

Explanation:

*Some inputs for the calculation as below:

One year period has 52 weeks

=> At the time she turns 68, she will have: (68-18) x 52 = 2,600 equal weekly cash flows; At the time she turns 47, she will have: (47-18) x 52 = 1,508 equal weekly cash flows.

* Present value of the investment plan lasting until she turns 68:

[ 24 / (7%:52) ] x [ 1 - (1+ (7%/52)^(-2,600) ] = $17,289.

* To have the same retirement nest egg at age 68, the present value of the investment plan lasting until she turns 47 should be equal to $17,289. Denote x is the weekly investment under the shorter investment scenario, we have:

[x / (7%:52) ] x [ 1 - (1+ (7%/52)^(-1,508) ] = $17,289 <=> x = $26.80.

A company has 525 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $61 per share. It also has 21,000 shares of common stock outstanding, and the total value of its stockholders' equity is $716,625. The company's book value per common share equals: $33.29.


$31.80.


$32.88.


$34.13.


$32.60.

Answers

Answer:

$32.60

Explanation:

The formula and the computation is shown below:

Book value per share = (Total equity - preferred stock) ÷ (outstanding number of shares)

where,

Total equity is $716,625

Preferred stock would be

= 525 shares × $61

= $32,025

And, the outstanding number of shares is 21,000 shares

So, the book value per share would be

= ($716,625 - $32,025) ÷ (21,000 shares)

= ($684,600) ÷ (21,000 shares)

= $32.60

Outsourcing:

A. transfers traditional internal activities to outside vendors.

B. utilizes the efficiency that comes with specialization.

C. allows the outsourcing firm to focus on its key success factors.

D. All of these are true of outsourcing.

E. None of these is true of outsourcing.

Answers

Answer: Option D  

           

Explanation: Outsourcing is an arrangement where one organization employs another organization to be responsible for an in-house planned or ongoing operation and sometimes requires the transition of staff and properties from one organization to another.

There are number of reasons why company outsource their activities some of which could be lesser cost, focus on core activities and use of specialization etc.

Outsourcing is generally performed by organisations that are operating their business at a very high scale and the management is unable to monitor and perform all jobs efficiently.

Jobs that are grouped into the same pay grade should
a. be paid at different wage rates because the worth of these jobs to the organization may differ.
b. be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade.
c. all receive the same wage rate in order to achieve equality.
d. be paid within a range that does not overlap with bordering job grades so that distinctions between grades are maintained.

Answers

Answer:

The correct answer is letter "B": be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade.

Explanation:

It is important within the work frame that job positions around almost the same level of wages consider the level of experience or the employees. Workers whose experience is greater should receive more compensations not only in gratitude for their years of collaboration but also as a way to motivate them to keep their work up. The wage should be equal or as close as the wage that the next grade employees perceive, new or not.

Final answer:

Pay grades are often designed to overlap with adjoining job grade ranges, enabling experienced employees to earn as much or more than newer employees in a higher grade. This approach encourages professional growth and job loyalty.

Explanation:

Jobs that are grouped into the same pay grade should generally be paid within a range that may overlap with adjoining grades (option b). This allows for an employee with experience to earn as much or even more than a newer employee with a higher grade. This system helps to reflect the value of work experience and skill development and promotes employee loyalty and longevity.

Options a, c, and d can apply in certain situations, but they are not as commonly used or as flexible. Option A tends to undervalue certain roles, Option C might discourage professionalism and personal development, and Option D could potentially inhibit mobility within the company.

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Net income under variable costing is contribution margin less Select one: a. cost of goods sold. b. fixed manufacturing overhead and fixed selling and administrative expenses. c. fixed manufacturing overhead and variable manufacturing overhead. d. variable selling and administrative expenses and fixed selling and administrative expenses.

Answers

Answer:b fixed manufacturing overhead and fixed selling and administrative expenses.

Explanation:

Variable costing deducts variable costs from revenue to arrive at contribution margins from which all fixed cost are deducted to arrive at the net income.

The cost of goods sold, variable costs and other costs are not deducted from the contribution margin except the fixed cost in variable costing method.

Bristlebird Corporation (E&P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife, Roberta, owns 1,500 shares. Juan and Roberta each have a basis of $90,000 in their Bristlebird stock. In the current year, Bristlebird Corp. redeems 1,000 shares from Juan for $250,000. With respect to the distribution in redemption of the Bristlebird stock:

a. Juan has dividend income of $250,000

b. Juan has dividend income of $190,000

c. Juan has a capital gain of $250,000

d. Juan has a capital gain of $190,000

e. None of the above

Answers

Answer:

A: Juan has dividend income of $250,000

Explanation:

Related party = dividend (extent of E&P)

Juan has a capital gain of $190,000 because the redemption of stock is considered a sale, with the capital gain calculated as the difference between the selling price and his basis in the shares.

The correct option is 'd'.

To determine the nature of the transaction for Juan after Bristlebird Corp. redeems 1,000 of his shares for $250,000, we must consider the tax implications. Generally, a redemption of stock is treated as a sale or exchange, resulting in capital gain or loss, unless the redemption is essentially equivalent to a dividend, in which case it is treated as dividend income.

If the redemption qualifies as a sale, Juan's capital gain or loss is calculated as the difference between the selling price ($250,000) and the basis of the shares redeemed. Juan's basis in 1,000 shares would be (1,000/1,500) * $90,000 = $60,000. Thus, if the transaction qualifies as a sale, Juan would realize a capital gain of $250,000 - $60,000 = $190,000.

In this case, it is not stated that the redemption is treated as a dividend. Therefore, we assume the default treatment as a sale. So, based on the provided information, the correct answer would be 'd. Juan has a capital gain of $190,000'.

Use your knowledge of relative scarcity to rank the following items from least scarce (top) to most scarce (bottom):

a. Salt water,
b. Diamonds,
c. Drinking water

Answers

The scarcity order of the items least scarce (top) to most scarce (bottom) is:

Drinking waterSalt waterDiamond

Basically, scarcity means the state of being scarce or short in supply.

Hence, the scarcity order of the items least scarce (top) to most scarce (bottom) is drinking water, salt water, diamond.

Therefore, the Option is C, A, B in order

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Final answer:

From least to most scarce, the items rank as follows: salt water, drinking water, and diamonds. Salt water is most abundant, followed by unevenly distributed drinking water and rare, luxurious diamonds.

Explanation:

Relative scarcity refers to how rare or common an item is compared to the demand for it. To answer the question on ranking the given items from least scarce to most scarce, we consider the global availability of salt water, diamonds, and drinking water. Here's the list, starting with the least scarce:

Salt Water: Abundant in oceans, but not drinkable without desalination.Drinking Water: Although there's enough fresh water for everyone, its distribution is uneven and often inaccessible or polluted, leading to scarcity in many areas.Diamonds: Though valuable, they are considered a luxury and are less available, making them the most scarce item on this list.

The value of an item is often tied to its scarcity and the demand for it. While water is essential for life, the availability of drinkable water is less than that of salt water. Diamonds, due to their rarity and desirability, are considered more scarce than both forms of water.

The newshole ______. Group of answer choices

a. is news content (not space used by ads) that takes up about 35 to 50 percent of the space in a typical metropolitan daily newspaper
b. refers to those parts of the public agenda that are ignored by news media
c. refers to a story that is somewhat incomplete but printed anyway
d. is a form of yellow journalism
e. refers to the space for advertising left over after the news content goes into the paper

Answers

Answer:  Option A

                                                 

Explanation: A news hole refers to a concept of journalism that depicts to the amount of room in a newspaper that is accessible every day. Generally, the column space designated for news hole are the leftover spaces after paid commercials are packed in.

As per the recent reports by some agencies, famous newspapers like economic timer or new York times gives 35 percent to 50 percent space in their publish for the news content.

Thus, from the above we can conclude that the correct option is A.

Final answer:

The newshole is the portion of a newspaper available for news content after advertising space is allocated, comprising about 35 to 50 percent of the newspaper's space.

Explanation:

The term newshole refers to the space in a newspaper or other publication that is available for news content after all the advertising content has been placed. The correct answer to the question is "The newshole is news content (not space used by ads) that takes up about 35 to 50 percent of the space in a typical metropolitan daily newspaper." Newspapers dedicate significant portions of their layout to advertisements, which finance their operations, and the remaining space, or newshole, is what's left for journalists to fill with news coverage. In the context of political coverage, factors such as pack journalism and a focus on campaign strategy over substantive reporting can influence the quality and depth of news content in this limited space.

Burns Corporation's net income last year was $98,300. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 20,500 Accounts receivable $ 13,400 Inventory $ (16,500 ) Prepaid expenses $ 4,400 Long-term investments $ 10,300 Property, plant, and equipment $ 74,900 Accumulated depreciation $ 32,200 Liability and Equity Accounts: Accounts payable $ (18,700 ) Accrued liabilities $ 17,100 Income taxes payable $ 4,300 Bonds payable $ (64,800 ) Common stock $ 42,800 Retained earnings $ 94,100 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,200. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.

Answers

Burns Corporation's net cash provided by operating activities is $132,900, net cash used in investing activities is $85,200, and net cash used in financing activities is $26,200. These are derived using the indirect method based on the changes in the balance sheet accounts provided. The overall change in cash flows is calculated by adjusting for these activities.

Here is how you can prepare Burns Corporation's Statement of Cash Flows for the year:

Operating Activities (Indirect Method):

Start with the net income for the year: $98,300

Add: Depreciation (balance sheet indicates this increased): $32,200

Adjust for changes in working capital:

Increase in Accounts Receivable: ($13,400)

Decrease in Inventory: $16,500

Increase in Prepaid Expenses: ($4,400)

Decrease in Accounts Payable: ($18,700)

Increase in Accrued Liabilities: $17,100

Increase in Income Taxes Payable: $4,300

Net cash provided by operating activities: $132,900

Investing Activities:

Increase in Long-term Investments: ($10,300)

Purchase of Property, Plant, and Equipment: ($74,900)

Net cash used in investing activities: ($85,200)

Financing Activities:

Decrease in Bonds Payable: ($64,800)

Common Stock issued: $42,800

Dividends Paid: ($4,200)

Net cash used in financing activities: ($26,200)

Which of the following statements is​ correct?

A. As a public transfer​ payment, Social Security benefit is available only to the poor.
B. Social Security benefits are received by people who had contributed to the fund during their active work years.
C. The Social Security program funnels transfers from retired individuals to the youngest children of​ low-income families.
D. Social Security is an entitlement which is available to​ everyone, including those who have not contributed to the fund during their active work years.

Answers

Answer:

B

Explanation:

Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.50 per hour Raw material: 20,000 pounds per day @ $1 per pound Energy: $5,000 per day Capital costs: $10,000 per day a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing? b) What is the multifactor productivity for these tires at Lakefront Manufacturing? c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?

Answers

Answer:

A) 2.5 bicycle tires per labor hour B) 0.025 dollars per bicycle tires C) It would mean an increase of 11.1% in the multifactor productivity.

Explanation: To calculate the productivity of labor per hour simply divide the total number of tires produced in 1 day with the total labor hour used (1000/400=2,5). To calculate the multifactor productivity, you have to sum the total cost of all resources labor, capital, raw material and energy, and divide the total output per the total cost of inputs (1000/40000=0.025). Finally, to calculate the impact of improvements in energy use, from 5,000$ per day to 1,000$, adjust the total cost of inputs by 4,000 (40,000-4,000=3,6000), divide production with the new cost (1,000/36,000=0.02777) and calculate the percentual change (0.0277-0.025/0.025=0.111)

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