Answer:
c. May be able to avoid liability to the extent she had no reason to know of the deficiency (and did not have actual knowledge) when filing the return. The burden of proof will be on her.
Explanation:
The doctrine of innocent spouse relief might apply here. Mrs. Jones will have to prove that:
the income that was omitted was earned by her husband, not her.she must prove that when she signed the tax filings, she was not aware of the omission. after examining all the facts surrounding the omission, the IRS must decide that blaming her would not be fair.What happens to the coupon rate of a $1,000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%
Answer:
C) The coupon rate remains at 8%
Explanation:
Here are the options to this question :
A) The coupon rate decreases to 8%
B) The coupon rate increases to 10%
C) The coupon rate remains at 8%
D) The coupon rate remains at 9%
A bond is a debt instrument. Bond holders receive fixed coupon payments.
the coupon payments do not vary with market interest rate. It remains fixed based on the rate set on the bond indenture.
If the coupon payment is $80 and the face value of the bond is $1000, the coupon payment is 8%. the coupon rate remains fixed at 8%
Installment notes payable that require periodic payments of accrued interest plus equal amounts of principal result in:
Answer: Periodic total payments that gradually decrease in amount
Explanation:
When periodic payments include both accrued interest and an equal repayment of principal, the total payment will reduce overtime.
This is because as the principal is repaid, the accrued interest amount will gradually decrease because the interest is being charged on a smaller amount of principal with each payment.
you have calculated the pro forma net income for a new project to be 45,930. the incremental taxes are 22,260 and incremental depreciation is 16,230. what is the operating cash flow
Answer:
$62,160
Explanation:
Calculation for the operating cash flow
Using this formula
Operating cash flow=Pro forma net income+Incremental depreciation
Let plug in the formula
Operating cash flow = $45,930 + 16,230
Operating cash flow = $62,160
Therefore the operating cash flow will be $62,160
Monopolistic competition means that Group of answer choices firms differentiate their output, which makes them price makers, but barriers to entry are low or nonexistent. firms are in a monopoly, but they compete. oligopoly firms collude until they become monopolies. firms are in perfect competition, but they collude similar to monopolies. firms have downward-sloping demand.
Answer:
firms differentiate their output, which makes them price makers,but barriers to entry are low or non-existent
Explanation:
Markets that are imperfectly competitive are usually monopolistic or oligopoly.
Monopolistic Competition is simply a market with many firms or organizations that sell goods and services that are similar, but slightly different. Its products have alternative or substitutes that are close but not perfect.
In a monopolistically competitive market, firms can behave like monopolies in the short run, including by using market power to give profit.
SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the year.
Beginning Inventory Ending Inventory
Finished goods (units) 22,000 32,000
Raw material (grams) 52,000 42,000
Each unit of finished goods requires 3 grams of raw material. The company plans to sell 170,000 units during the year. How much of the raw material should the company purchase during the year?
a. 552,000 grams
b. 540,000 grams
c. 530,000 grams
d. 582,000 grams
Answer:
c.530,000 grams
Explanation:
Calculation for How much of the raw material should the company purchase during the year
First step is to prepare the Production Budget
PRODUCTION BUDGET
Budgeted unit sales 170,000
Add desired ending finished goods inventory
32,000
Total 202,000
(170,000+32,000)
Less beginning finished goods inventory (22,000)
Required production in units 180,000
(202,000-22,000)
Second step is to prepare Materials Budget
MATERIALS BUDGET
Raw materials required for production 540,000
(180,000*3 grams)
Add desired ending finished goods inventory
42,000
Total raw materials needed 582,000
(540,000+42,000)
Less beginning finished goods inventory (52,000)
Required material purchases 530,000 grams
(582,000-52,000)
Therefore the amount of the raw material that the company should purchase during the year is $530,000 grams
Melinda signs a three year contract for employment as a legal studies lecturer. Does this type of contract fall within the scope of the statute of frauds
Answer: Yes, because it is a contract whose terms prevent possible performance within one year
Explanation:
The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.
Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.
The advantage of a Gantt chart over other charts is its feasibility. practicality. simplicity. linearity.
Answer:
Practicality
Explanation:
With a Gantt chart, the Production Supervisor would easily add dependencies and predecessor Activities and show production plans which makes it practical and easy to understand.
Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the required rate of return of the stock increases, the price of the stock will:
Answer:
decreased
Explanation:
As we know that there is a negative relationship between the rate of return i.e. required and the price of the stock. That means if the required rate of return rises, than the price of the stock reduced and vice versa
As in the given situation it is mentioned that the required rate of return increase so the price of the stock is decreased
The same is to be considered
Barbara is a single taxpayer who had a 2020 adjusted gross income of $25,000 and contributed $4,000 to her traditional IRA. Assuming she has a $2,000 income tax liability for the year, what is her maximum retirement contribution savings credit
Answer:
$200
Explanation:
The retirement contribution savings credit is designed to benefit low and middle income tax payers that contribute to retirement accounts.
The maximum credit ranges from $200 to $1,000 per taxpayer.
Since Barbara earned below $32,500, she applies for this tax credit.
Since her AGI is over $21,251, she can only deduct 10% of the first $2,000 contributed to her IRA account = $2,000 x 10% = $200
Lana earned $100 interest from a California municipal bond and $30 from an Arizona municipal bond. What amount is taxable income for her California tax return that is not taxable on her Federal return
Answer:
Lana
$30 is taxable income for her California tax return, but not taxable on her Federal tax return.
Explanation:
a) Data:
Interest earned from California municipal bond = $100
Interest earned from Arizona municipal bond = $30
b) Lana is a confirmed resident of California, based on the facts of this case. Lana's income from investing in municipal bonds is generally exempt from Federal and state taxes for residents of the issuing state. This implies that her income from the California bond is tax-exempt. But her income from the Arizona municipal bond of $30 is not tax-exempt in California. At the federal level, all two sources of her income are tax-exempt.
Answer:
$30
Explanation:
On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The net realizable value of unit A was now $685 while the net realizable value of unit B was $550. The adjustment associated with the lower-of-cost-or-net realizable value method on April 30 will be:
You want to buy XYZ public company. The company currently has a dividend of $3.12, but has indicated they will increase the dividend by 3.1% each year. You expect an investment return of 9%. How much is this stock worth
Answer:
$54.52
Explanation:
The formula for determining share price is as stated below based on the Gordon Constant Dividend Model:
Share price=current dividend*(1+g)/(Ke-g)
current dividend=$3.12
g=constant dividend growth rate=3.1%
Ke=required return on the investment=9%
Share price=$3.12*(1+3.1%)/(9%-3.1%)
Share price=$3.12*1.031/5.9%
Share price=$3.21672 /5.9%
share price=$54.52
How is productivity different in a goods-producing occupation and in a service-
providing occupation?
Answer:
Productivity for goods-producing tend to have a more simple variables for measurement. This might not be the case for service-providing occupations.
For goods producing occupation, productivity usually measured by two standards alone: The numbers of goods produced and the numbers of defect. A company will be considered to have good productivity if it has High number goods produced and the low defects.
For service-providing occupation, this measurement can be a bit more complicated.
Services usually depended on the type of costumers. A service that considered as 'satisfactory' by one costumers will not necessarily perceive the same way by the other customers. (For example, let's say that you work work as a barber and give 1 same hair style to two different customers. One customers might completely love your work while the other might completely hate it. Even if you're producing one same hair style )
This make measuring productivity for service industries become harder compared to manufacturing industry.
Which two of these are essential for completing an initial mortgage loan application?
Home purchase price
Proof of income
Current debts and credit history
Name of insurance agent
$2,500 in savings
Answer:
2 and 3
Explanation:
Proof of income and Current debts and credit history
Wet for the Summer, Inc., manufactures filters for swimming pools. The company is deciding whether to implement a new technology in its pool filters. One year from now the company will know whether the new technology is accepted in the market. If the demand for the new filters is high, the present value of the cash flows in one year will be $14.3 million. Conversely, if the demand is low, the value of the cash flows in one year will be $8 million. The value of the project today under these assumptions is $12.9 million, and the risk-free rate is 6 percent. Suppose that in one year, if the demand for the new technology is low, the company can sell the technology for $9.4 million. What is the value of the option to abandon?
Answer:
$131,283
Explanation:
Upstate Price = Present Value of Cash Flows if Demand is High / Value of Project = $14.3 million / $12.9 million = 1.10853
Downstate Price = Present Value of Cash Flows if Demand is Low / Value of Project = $8 million / $12.9 million = 0.62016
Now, the computation of Probability of Demand being High
Risk Free Rate = (Probability of Rise) * (U-1) + (1 - Probability of Rise) * (d-1)
0.06 = (Probability of Rise) * (1.10853 - 1) + (1 - Probability of Rise) * (0.62016 - 1)
0.06 = (Probability of Rise) * 0.10853 + (1 - Probability of Rise)*(-0.37984)
0.06 = 0.10853 Probability of Rise + 0.37984 Probability of Rise - 0.37984
0.06 + 0.37984 = 0.10853 Probability of Rise + 0.37984 Probability of Rise
0.43984 = 0.10853 + 0.37984 Probability of Rise
0.43984 = 0.48837 Probability of Rise
Probability of Rise = 0.43984 / 0.48837
Probability of Rise = 0.9006286217417122
Probability of Rise = 0.9006
Probability of Fall = 1 - 0.9006
Probability of Fall = 0.0994
Value of the option to abandon = Probability of Fall * (Selling Price - Cash Flow if Demand is Low)/(1 + Risk Free rate)
Value of the option to abandon = 0.0994 * ($9,400,000-$8,000,000) / (1 + 0.06)
Value of the option to abandon = 0.0994 * $1,400,000/1.06
Value of the option to abandon = $139,160 / 1.06
Value of the option to abandon = $131283.0188679245
Value of the option to abandon = $131,283
Consider the effects of inflation in an economy composed of only two people: Jacques, a bean farmer, and Kyoko, a rice farmer. Jacques and Kyoko both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
What matters more to Jacques and Kyoko?
Answer:
Consider the effects of inflation in an economy composed of only two people: Jacques, a bean farmer, and Kyoko, a rice farmer. Jacques and Kyoko both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
Since the inflation rate was 100% and affected both products in the same manner, Jacques and Kyoko will be unaffected by inflation.
Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Since the inflation rate of beans was 100% and the inflation rate of rice was 20%, Jacquues will benefit from it and he will be better off. Kyoko will be worse off.Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Since the price of beans increased by 100%, while the price of rice decreased by 60%, Jacques will be extremely benefited while Kyoko will be hit extremely hard and will be much worse.What matters more to Jacques and Kyoko?
Relative prices matter than general inflation level.Shelby Cabinets, Inc. produces custom cabinets. The following inventory balances appeared on its balance sheet.
12/31/2012
12/31/2011
Raw materials inventory
$ 8,000
$ 10,000
Work-in-process inventory
600,000
550,000
Finished goods inventory
350,000
410,000
Shelby Cabinets had $1,265,000 in sales for the year ended December 31, 2012. The company also had the following costs for the year:
Selling
$ 90,000
General and administrative
$240,000
Raw materials purchases
$100,000
Direct labor used in production
$125,000
Manufacturing overhead
$630,000
Of the total raw materials placed in production for the year, $12,000 was for indirect materials and must be deducted to find direct materials placed in production.
Using the above information, what was Shelby’s Cost of Goods Sold?
(Hint: You must first calculate the Cost of Goods Manufactured before calculating Cost of Goods Sold.)
Group of answer choices
$795,000
$845,000
$855,000
$1,395,000
Answer:
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Answer:
$855,000
Explanation:
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:
January 1, 2018 $334,000
September 1, 2018 $498,000
December 31, 2018 $498,000
March 31, 2019 $498,000
September 30, 2019 $334,000
Dreamworld had $6,600,000 in 12% bonds outstanding through both years. Dreamworld's average accumulated expenditures for 2018 was:________
a. 500,000
b. 668,000
c. 583,500
d. 334,000
Answer:
Dreamworld's average accumulated expenditures for 2018 was:________
a. 500,000
Explanation:
a) Data and Calculations: Weights:
January 1, 2018 $334,000 12/12 $334,000
September 1, 2018 $498,000 4/12 166,000
December 31, 2018 $498,000 0/12 0
March 31, 2019 $498,000
September 30, 2019 $334,000
Average accumulated expenditure for 2018 $500,000
b) To calculate the average accumulated expenditures for 2018, weights relative to the fraction representing the capitalization period in terms of years is applied to the actual amount of expenditure as above.
Data for Corporation and its two divisions, Domestic and Foreign, appear below:
Sales revenues, Domestic $541,000
Variable expenses, Domestic $314,000
Traceable fixed expenses, Domestic $64,800
Sales revenues, Foreign $418,300
Variable expenses, Foreign $238,700
Traceable fixed expenses, Foreign $54,200
In addition, common fixed expenses totaled $146,900 and were allocated as follows: $76,300 to the Domestic division and $70,600 to the Foreign division.
Required:
What is the segment margin for the Domestic division?
Answer:
the segment margin for the Domestic division is $162,200
Explanation:
The calculation of the segment margin is shown below:
Segment Margin is
= Domestic Sales Revenues - Domestic Variable Expenses - Domestic Traceable Fixed Expenses
= $541,000 - $314,000 - $64,800
= $162,200
Therefore the segment margin for the Domestic division is $162,200
Supply and demand is:
A. an advertising principle that the value of a product is directly
proportional to how many public figures and celebrities use it.
B. an advertising method supporting the idea that if you show several
products being used in an ad, more people will want to buy them.
C. an economic idea that the value of something is determined
how much of it exists in relation to how much consumers want it.
D. an economic principle supporting the idea that the quicker
something is made, the sooner it can be sold on the open market.
Answer:
C.
Explanation:
Consumers wanting it is the demand.
So if fewer want it, it might be made less.
if more want it, it might be made more often.
If it's in high demand, it might also cost more to get, as more people want it.
Latiker, Inc., manufactures and sells two products: Product Y9 and Product W0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Y9 100 8 800
Product W0 100 10 1,000
Total direct labor-hours 1,800
The direct labor rate is $15.40 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials Cost per Unit
Product Y9 $253.00
Product W0 $278.80
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools Activity Measures Overhead Cost Product Y9 Product W0 Total
Labor-related DLHs $61,488 800 1,000 1,800
Machine setups setups 50,687 400 300 700
Order size MHs 155,754 5,000 5,200 10,200
$267,929
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
a. $31.15 per setup
b. $26.27 per setup
c. $29.95 per setup
d. $72.41 per setup
Answer:
d. $72.41 per setup
Explanation:
The computation of the activity rate for the machine setup activity pool is as follows;
The Activity rate for the Machine setups activity cost pool is
= Estimated overhead cost ÷ Total machine setup
= $50,687 ÷ 700
= $72.41 per setups
Hence, the activity rate for the machine setup activity pool is $72.41 per setup
Therefore the option d is correct
help ASAP TRUE OR FALSE QUESTION
Answer:
true I think.
Explanation:
You receive results from the team engagement survey. According to the survey, your team members feel that the feedback they provide to management is not being taken into consideration quickly enough. Assuming all options are possible, what would you be most and least likely to do?
Answer:
Most: Discuss the issue with your team. Ask team members for suggestions on how to better incorporate their.
Least: Talk to your peers who received similar feedback and brainstorm together on how to better engage the team.
Explanation:
When you are like the average managers, you probably wish you could get more feedback from your workers. Quality feedback will help you all work together, enhance your leadership style, and make sure you catch issues before they become major problems.
Although your team members must be the ones to come up with the ideas, there are many things you can do to make creating them better and more profitable.
A portfolio consists of 400 shares of stock and 200 calls on that stock. If the hedge ratio for the call is 0.6, what would be the dollar change in the value of the portfolio in response to a $1 decline in the stock price
Answer: -$520
Explanation:
From the question, we are informed that a portfolio consists of 400 shares of stock and 200 calls on that stock and that the hedge ratio for the call is 0.6.
The dollar change in the value of the portfolio in response to a $1 decline in the stock price will then be:
= -$400 + [-$200(0.6)]
= -$400 - $120
= -$520.
A company headquartered in the United States has operations in 27 countries. The company purchased a subsidiary to expand operations into another country last year. According to COSO, what provides the strongest mechanism for monitoring control in this new foreign venture?
Answer: An internal audit is being performed.
Explanation:
Internal Audit is a department or entity that provides structures, corporate organizations, and procedures for persons inside an organization with unbiased, objective assessments.
According to the Chartered Institute of Internal Auditors, the role of internal audit is to provide objective assurance that an organization's risk management, governance and internal control processes are operating effectively.
Corporation had the following performance in the last period:
Net operating income, $400,000;
Turnover, 6;
ROI 23%.
What were Corporation's average operating assets?
Answer:
$1,739,130
Explanation:
Calculation for the Corporation's average operating assets
Using this formula
Average operating assets=Net operating income/ROI (Return on Investment)
Let plug in the formula
Average operating assets=$400,000/0.23
Average operating assets=$1,739,130
The Corporation's average operating assets will be $1,739,130
The lease payments from footnote disclosures of an operating lease
Year Lease payments ($)
1. 1,375
2. 1,210
3. 825
Year 4 and after 4,125
Assume a discount rate of 8%.
Required:
a. Calculate the PV of all the lease payments.
b. Assume a 10% discount rate and a tax rate of 25%, so that the PV of all the lease payments is $5,220. Complete the I/S figures .
Complete Question
The lease payments from footnote disclosures of an operating lease Year Lease payments ($) 1. 2. 3. Year 4 and after 1,375 1,210 825 4,125 Assume a discount rate of 8%.
Required:
a. Calculate the Pv of all the lease payments.
b. Assume a 10% discount rate and a tax rate of 25%, so that the Pv of all the lease payments is $5,220.
Complete the I/S figures Income Statement Effects
As Reported Adjustment Adjusted
NO PAT $1,500 - -
INT(1-tax rate) 475 - -
NI $1,025 - -
Answer:
Explanation:
from the question
from the question
present value of all lease payment
year lease payment
1 $1373
2 $1210
3 $ 825
4 and after $4125
To get or derive the of the lease payment after year 4 i.e future lease payment
= [tex]\frac{ annual\ lease\ payment\ for\ year\ 4\ and\ after}{ discount\ rate}[/tex]
= [tex]\frac{4125 }{ 0.08} = 51562.5[/tex]
[tex]PV = (1+i)^{-n}[/tex]
present value of all lease payment
year lease payment present value at 8%
1 $1375 $1273
2 $1210 $1037
3 $835 $654
4 $4125 $3032
$51562.5 $37899
Total $43895
calculation for PV
year
1 0.9259 × 1375
2 0.8573 × 1210
3 0.7938 × 835
4 0.7350 × 4125
after 0.7350 × 51562.5
As reported adjustment Adjusted
NO PAT $1500 $0 $ 1500
INT ( 1-Tax rate) $ 475 $392 $ 867
NI $1025 $0 $ 634
Calculation of adjustment and adjusted
adjustment adjusted
NO PAT $1500 + $0
INT (1-TAX RATE] 5220×0.10×(1 -0.25) $475 + $392
NI $1500 - $867
Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values next year: $150 million, $135 million, $95 million, or $80 million. These outcomes are all equally likely, and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free interest rate is 5% and assume perfect capital markets.
Required:
a. What is the yield-to-maturity of the debt?
b. What is its expected return?
Question Completion:
Suppose the Gladstone has zero-coupon debt with a $100 million face value due next year.
Answer:
Gladstone Corporation
a) The yield-to-maturity of the debt is:
9.5%
b) Its expected return is:
$5.474 million
Explanation:
Data and Calcualtions:
Zero-coupon debt = $100,000
Risk-free interest rate = 5%
Values from new product = one of $150 million, $135 million, $95 million, or $80 million outcomes equally likely = Total value = $460 million
Expected initial value without leverage = $460 million * 0.25 (1/4) = $115 million
Present value of expected initial value = expected initial value discounted by 5%
= $115 million * 0.952
= $109.48 million
Yield to maturity = (PV - Debt)/Debt = $9.48/$100 * 100 = 0.0948 = 9.5%
Expected return = $109.48 million * 5% = $5.474 million
Expected rate of return = $5.474/$100 * 100 = 5.5%
true or false question just help
Answer: True
Explanation:
Answer:it is true
Explanation: it’s true because it makes worker a little more at ease and that makes them want to help even more.
According to Classical economists, the permanent income hypothesis was an argument supporting their view that, during a recession, the economy would
Answer: tend to self correct and the decline would be cushioned.
Explanation:
The permanent income hypothesis is simply refered to as a theory that relates to consumer spending which states that individuals will spend money based on the disposable income that they expect in their lifetime.
According to Classical economists, the permanent income hypothesis was an argument supporting their view that, during a recession, the economy would tend to self correct and the decline would be cushioned.
