Renata Corporation purchased equipment in 2018 for $244,800 and has taken $110,160 of regular MACRS depreciation. Renata Corporation sells the equipment in 2020 for $146,880. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $fill in the blank 1 of which $fill in the blank 2 is treated as ordinary income due to § 1245 recapture

Answers

Answer 1

Answer and Explanation:

The computation of the amount and the character of the renata gain or loss is shown below;

purchased equipment in 2018 $244,800

regular MACRS depreciation taken -$110,160

WDV as per MACRS method $134,640

Less: Sell the equipment  -$146,880

loss on sale of equipment -$12,240

There is a loss and that would be short term capital loss


Related Questions

Umbarra Company bonds have a stated coupon rate of 5% and pay interest on an annual basis. They mature in 18 years and have a par value of $1,000. The market rate of interest on similar debt is 8%. The value of Umbarra bonds is (round to the nearest dollar).

Answers

Answer:

Value of Bond =$718.8

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate  

Value of Bond = PV of interest + PV of RV

The PV of interest payment

A ×(1- (1+r)^(-n))/r

Interest payment = 5%× 1000 = 50

PV = 50× (1- 1.08^(-18))/0.08 = 468.59

PV of redemption value  

PV = RV× (1+r)^(-n)

PV = 1000× 1.18^(-18) = 250.24

The value of bond = 468.59 + 250.24= 718.84

The value of Bond = $718.84

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $265,000. The shareholders in this firm basically own a _____ option on the assets of the firm with a strike price of _____. Group of answer choices Put; $180,000 Put; $265,000 Warrant; $265,000 Call; $180,000 Call; $265,000

Answers

Answer: Call; $180,000

Explanation:

A Call option gives the holder the right to buy an asset if they want to at a certain set price.

In this scenario the shareholders of this firm can buy the assets of this company in order to pay off the debt of $180,000 which in essence makes $180,000 the strike price thereby making this a call option.

The greatest concern consumers may have regarding the convergence of the real and digital worlds is Multiple Choice the proliferation of ads and sponsored stories on social networking sites that reduce click-through rates. a decreased emphasis on measuring the marketing return on investment for social media initiatives. the elimination of traditional media; all media will become digital. the interference with personal privacy as personal data gets shared within and across social media. the absence of digital cash to complete the near field communication transaction process.

Answers

Answer:

The interference with personal privacy as personal data gets shared within and across the social media.

Explanation:

The concern with respect to the convergence of the real and digital worlds is that there is an interference in regard to the personal privacy as the personal data would be shared in the social media

So according to the given options, the above represent  the answer

The same would be considered and relevant

g Pix Company has the following production data for March: no beginning work in process, units started and completed 29,000, and ending work in process 3,300 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $7 and unit conversion cost is $10. The total costs to be assigned are $529,300, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Answers

Answer:

Pix Company

Production cost report - extract

Outputs

                                                             Units         Costs

Costs assigned to completed units 29,000     $493,000

Units Still in Process                            3,330       $36,630

Total                                                   32,330     $529,630

Explanation:

Step 1 : Equivalent Units of Production

Materials

To Finish Work in Process                                              0

Started and Completed (29,000 x 100%)                29,000

Ending Work in Process (3,330 x 100%)                    3,330

Equivalent units of Production in Materials             32,330

Conversion Costs

To Finish Work in Process                                             0

Started and Completed (29,000 x 100%)               29,000

Ending Work in Process (3,330 x 100%)                    1,332

Equivalent units of Production in Materials             30,332

Step 2 : Costs assigned to completed units and units still in process

Costs assigned to completed units = Units Completed x total units cost

                                                           = 29,000 x $17

                                                           = $493,000

Units Still in Process = Materials Cost + Conversion Costs

                                   = 3,330 x $7 + 1,332 x $10

                                   = $36,630

Corey is the city sales manager for RIBS, a national fast food franchise. Every working day, Corey drives his car as follows: Home to office Office to RIBS No. 1 RIBS No. 1 to No. 2 RIBS No. 2 to No. 3 RIBS No. 3 to home Miles 20 15 18 13 30 Corey renders an adequate accounting to his employer. As a result, Corey's reimbursable mileage is: a. O miles. b. 50 miles. C. 66 miles. d. 76 miles. e. None of these.

Answers

Answer: e. None of these

Explanation:

Based on the information given, Corey's reimbursable mileage will be:

= 15 miles + 18 miles + 13 miles

= 46 miles.

We should note that the mileage that she used for driving from her home to office and the one that she also used from driving from the last worksite to her home isn't deductible.

Since the answer of 46 miles isn't among the options given, then the answer is "None of these"

Which of the following statements concerning the use of support department and joint cost allocations for performance evaluations is not true?
A. A manager may not be responsible for the allocation of support department costs if he or she cannot control the square footage of the areas upon which cost allocations are based.
B. A manager may miss a performance target because direct materials costs are too high.
C. A manager may miss a performance target because he or she has no control over the joint processes prior to his or her department which is after the split-off point.
D. It is rare to need further investigation beyond a preliminary analysis when a manager misses a performance target.

Answers

Answer:

d.It is rare to need further investigation beyond a preliminary analysis when a manager misses a performance target.

Explanation:

Performance evaluation can be regarded as process whereby manager pass evaluation or examination on employee on the work behavior of employee through comparison with preset standards.

In the use of support department and joint cost allocations for performance evaluations ;

✓A manager may not be responsible for the allocation of support department costs if he or she cannot control the square footage of the areas upon which cost allocations are based.

✓A manager may miss a performance target because direct materials costs are too high.

✓A manager may miss a performance target because he or she has no control over the joint processes prior to his or her department which is after the split-off point.

Black Horse Transportation's sales budget for the first quarter follows: January$125,000 February 300,000 March290,000 All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts. The March cash receipts are:

Answers

Answer:

$260,000

Explanation:

Cash Receipts Calculation - March

March Credit Sales ($290,000 x 50%)          $145,000

February Credit Sales ($300,000 x 30%)      $90,000

January Credit Sales ($125,000 x 20%)         $25,000

Total                                                                $260,000

Therefore,

The March cash receipts are $260,000

Tina specializes in newspaper print layout. Unfortunately, her newspaper transformed into a digital-copy only and she was laid off because her print-laying skills were no longer needed. Is Tina's scenario is an example of ____________________ unemployment. Select the correct answer below: voluntary frictional cyclical structural

Answers

Answer:

Structural

Explanation:

It is correct to say that Tina's scenario is an example of structural unemployment, that there are structural economic changes, which can have several different reasons, in the case of the above question, the structural change was caused by a technological change that made the newspaper where Tina worked if she scanned, and Tina's skills were not sufficient to keep up with such changes, which resulted in her resignation.

This is a type of long-term unemployment, which can negatively impact a society, with a large number of people unemployed and disqualified for current job openings, to reduce this problem, it is necessary that companies invest in training programs and effective qualifications so that its employees can follow the structural changes that occurred in their jobs.

The following information is available for Conger Company for the month of January: expected cash receipts $59,000; expected cash disbursements $67,000; and cash balance on January 1, $12,000. Management wishes to maintain a minimum cash balance of $9,000.
Prepare a basic cash budget for the month of January.

Answers

Answer:

Basic cash budget for the month of January

Cash Receipts :

Receipts                               $59,000

Expenditures :

Disbursements                     $67,000

Net Cash                               ($8,000)

Beginning Balance               $12,000

Ending Balance                      $4,000

Loan amount                          $5,000

Explanation:

A Cash Budget gives an estimate of cash receipts and expenditures. It can also tell when and how much additional cash may be required to meet  minimum cash balances.

Karen owns a designer clothing store in a small town. Since her store is the only store that offers designer outfits, she charges high prices for them. In the same town, another store deals in similar apparels but offers them at cheaper rates. Karen wants to maintain the exclusivity of her store. She is planning to slash prices. This move may incur losses. However, she is determined to give a tough competition to her competing store and ensure that it goes out of business.

Answers

Answer:

Antitrust law

Explanation:

The government uses Antitrust laws to prevent creation of monopolies. These laws ensure that no single firm prevents competition unreasonably. So, Karen's action of cutting down prices to eliminate the competitor will come under government scrutiny.

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.9%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.9% over the next 4 years, calculate the price of the bonds at each of the following years to maturity.

Years to Maturity Price of Bond C Price of Bond Z
4 $ $
3 $ $
2 $ $
1 $ $
0 $ $

Answers

Answer:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Explanation:

Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.

The price of each bond of the bond can be calculated using the following excel function:

Bond price = -PV(rate, NPER, PMT, FV) ........... (1)

Where;

rate = Yield to maturity of each of the bonds

NPER = Years to maturity

PMT = Payment = Coupon rate * Face value

FV = Face value

Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Do internet search enhance our knowledge in animal/fish raising?​

Answers

Yes it does because it helps us to be aware on the things that we should know on how to raise the animals with care.

Bad Wolf Enterprises is recalling and reissuing an outstanding bond offering. The reissued bond offering will be 10 year 5% coupon bonds. The present value of the coupons savings of the new offering is $588,365, the future value of the extra principal payment of the new offering is $350,000, and the administrative fees associated with the recall and reissue are $112,394. Calculate the net benefit ( ) or cost (-) of the call and reissue for Bad Wolf Enterprises

Answers

Answer:

Bad Wolf Enterprises

The net benefit of the call and reissue for Bad Wolf Enterprises is:

= $261,071.

Explanation:

Data and Calculations:

Bond maturity period = 10 years

Coupon rate = 5%

Present value factor at 5% for 10 years = 0.614

Present value of the coupons savings of the new offering = $588,365

Future value of the extra principal payment of the new offering = $350,000

Present value of the extra principal payment = $214,900 ($350,000 * 614)

Administrative fees associated with the recall and reissue = $112,394

Total cost = $327,294 ($214,900 + $112,394)

The net benefit of the call and reissue = Total benefits minus total costs

= $261,071 ($588,365 - $327,294)

Neap, spring, high, and low are all types of ____________________.

Answers

Pretty sure the answer is tides :))

At the end of 2017, Buckeyes Industries had a deferred tax asset account with a balance of $28 million attributable to a temporary book-tax difference of $70 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $75 million. Buckeyes has no other temporary differences. Taxable income for 2018 is $200 million and the tax rate is 40%
Prepare the journal entry(s) to record income taxes assuming it is more likely than not that one-fourth of the deferred tax asset will not ultimately be realized.

Answers

It’s 200 in tax but it’s also 70 million and then I’m 2018 it’s

     Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Since ancient times, paying taxes to governments or officials has been a fundamental aspect of civilisation.

Deferred tax assets and liabilities are categorized in what ways on the balance sheet?

          If a reporting firm submits a classified balance sheet, deferred tax assets, liabilities, and any associated valuation allowance shall be classified as noncurrent.

        Asset/liability strategy : Financial Accounting Standard (FAS) 109 Accounting for Income Taxes (FASB, 1992) outlines the current accounting for deferred taxes and mandates that firms account for taxes using the asset/liability model.

      A delayed tax liability typically arises when the government's accounting practices diverge from those of a conventional business. One frequent illustration is the depreciation of fixed assets. Companies often use a straight-line depreciation approach to disclose depreciation in their financial accounts.

      A "temporary difference" is the distinction between the carrying value and the tax base. The temporary difference is multiplied by the tax rate to determine the deferred tax liability. The only thing left to do is to calculate the difference once the deferred tax due has been established.

      Answer : Taxes total 200, however there are additionally 70 million and in 2018 there is also.

To Learn more about  Tax, Refer:

https://brainly.com/question/26316390

#SPJ2

An employee earns $28 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 46 hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $200 was withheld. a. Determine the gross pay for the week. $fill in the blank 1 b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent. $fill in the blank 2

Answers

Answer and Explanation:

a. The computation of the gross pay for the week is shown below

Regular pay ($28 ×40 hours) $1,120

Overtime pay (6 hours × $28 × 1.5) $252

Total gross pay $1,372

b. The computation of the net pay for the week is given below:

Gross pay $1,372

Less:

FICA ($1,372 × 7.5%) $103

Federal income tax $200

Net pay $1069.10

You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is:

Answers

Answer:

Profit-maximizing output = 6 units

Explanation:

Given:

Demand curve =  P = 63 − 5Q

Cost C = 10 + 3Q

Find:

Profit-maximizing output

Computation:

In monopoly maximum profit stand where;

MR = MC

So,

TR = P x Q

TR = (63 - 5q)Q

TR = 63Q - 5Q²

MR = d(TR) / dQ

So,

MR = d[63Q - 5Q²] / dQ

MR = 63 - 10Q

MC = dC / dQ

MC = d(10+3Q) / dQ

MC = 3

So,

Profit-maximizing output

MR = MC

63 - 10Q = 3

Q = 6

Profit-maximizing output = 6 units

A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually increase its currency exposure. faces no exchange rate risk and should never hedge since this could actually increase its currency exposure. faces no exchange rate risk. faces exchange rate risk to the extent that it has international competitors in the domestic market.

Answers

Answer:

faces exchange rate risk to the extent that it has international competitors in the domestic market.

Explanation:

Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.

So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.

For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:

Accounts Debits Credits
Cash $3,800
Accounts Receivable 8,800
Supplies 2,800
Equipment 22,000
Accumulated Depreciation $5,200
Accounts Payable 3,200
Utilities Payable 4,200
Deferred Revenue 0
Common Stock 16,000
Retained Earnings 8,800
Totals $37,400 $37,400

The following is a summary of the transactions for the year:

1. January 24 Provide plumbing services for cash, $13,000, and on account, $58,000.
2. March 13 Collect on accounts receivable, $46,000.
3. May 6 Issue shares of common stock in exchange for $12,000 cash.
4. June 30 Pay salaries for the current year, $31,600.
5. September 15 Pay utilities of $4,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $7,200.
7. December 30 Pay $1,600 cash dividends to stockholders.

Required:
Prepare each of the summary transactions listed above.

Answers

Answer:

January 24

Debit  : Accounts Receivables $58,000

Debt   : Cash $13,000

Credit : Service Revenue $71,000

March 13

Debit  : Cash $46,000

Credit : Accounts Receivable $46,000

May 6

Debit  : Cash $12,000

Credit : Common Stock $12,000

June 30

Debit  : Salaries $31,600

Credit : Cash $31,600

September 15

Debit  : Utilities Payable $4,200

Credit : Cash $4,200

November 24

Debit  : Cash $7,200

Credit : Deferred Service Revenue $7,200

December 30

Debit  : Dividends $1,600

Credit : Cash $1,600

Explanation:

When payment for goods or services does not happen immediately, raise an Account Receivable or Account Payable otherwise recognize a Cash change.

) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in units 60,000 80,000 90,000 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Prestwich pays for 60% of the purchases in the month of purchase and 40% in the following month. a. What would be the budgeted purchases of material A in pounds for the second quarter

Answers

Answer:

165,000 pounds ($495,000)

Explanation:

To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :

Materials Purchases Budget

                                                                                                    Pounds

Materials Required for Production (80,000 x 2)                     160,000

Add Closing Materials Inventory (90,000 x 2 x 25%)              45,000

Total Materials                                                                          205,000

Less Opening Materials Inventory (80,000 x 2 x 25%)          (40,000)

Material Purchases                                                                    165,000

Cost per unit                                                                                       $3

Budgeted Materials Cost                                                       $495,000

Bearcat Construction begins operations in March and has the following transactions.

March 1 Issue common stock for $16,500.
March 5 Obtain $8,100 loan from the bank by signing a note.
March 10 Purchase construction equipment for $20,500 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $17,100 on account.
March 27 Receive $12,100 cash on account from March 22 services.
March 28 Pay salaries for the current month of $5,100.

Required:
Record each transaction.

Answers

Answer:

Mar. 1

Dr Cash $16,500

Cr Common stock $16,500

Mar. 5

Dr Cash $8,100

Cr Notes payable $8,100

Mar. 10

Dr Equipment $20,500

Cr Cash $20,500

Mar. 15

Dr Advertising expense .$1,100

Cr Cash $1,100

Mar. 22

Dr Accounts receivable

$17,100

Cr Service revenue $17,100

Mar. 27

Dr Cash $12,100

Cr Accounts receivable $12,100

Mar. 28

Dr Salaries expense $5,100

Cr Cash $5,100

Explanation:

Preparation of the journal entries

Mar. 1

Dr Cash $16,500

Cr Common stock $16,500

Mar. 5

Dr Cash $8,100

Cr Notes payable $8,100

Mar. 10

Dr Equipment $20,500

Cr Cash $20,500

Mar. 15

Dr Advertising expense .$1,100

Cr Cash $1,100

Mar. 22

Dr Accounts receivable

$17,100

Cr Service revenue $17,100

Mar. 27

Dr Cash $12,100

Cr Accounts receivable $12,100

Mar. 28

Dr Salaries expense $5,100

Cr Cash $5,100

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 51,000 units per month is as follows:
Direct materials $48.10
Direct labor $9.20
Variable manufacturing overhead $2.20
Fixed manufacturing overhead $19.50
Variable selling & administrative expense $4.00
Fixed selling & administrative expense $19.00
The normal selling price of the product is $108.10 per unit.
An order has been received from an overseas customer for 3,100 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.30 less per unit on this order than on normal sales.
Direct labor is a variable cost in this company.
Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,250 units for regular customers.
The minimum acceptable price per unit for the special order is closest to: (Round your intermediate calculations to 2 decimal places.)
a. $92.10 per unit
b. $108.10 per unit
c. $69.10 per unit
d. $79.18 per unit

Answers

Answer:

See below

Explanation:

Direct material = $48.10

Direct labor = $9.20

Variable manufacturing = $2.20

Fixed manufacturing = $19.50

Variable admin expenses = $4.0

Selling price = $108.10

Profit =

Contribution per unit =

New order = $3,100 units

Direct material = $48.10

Direct labor = $9.20

Variable manufacturing = $2.20

A process with no beginning work in process, completed and transferred out 84300 units during a period and had 50300 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:

Answers

Answer:

$94,360

Explanation:

Calculation to determine what The equivalent units of production for the period for conversion costs were

Equivalent units of production=[$84,300+ ($50,300 * 20% ]

Equivalent units of production=$84,300+$10,060

Equivalent units of production=$94,360

Therefore The equivalent units of production for the period for conversion costs were $94,360

5 types of challenges in the business environment

Answers

Answer:

Uncertainty about the future.

Financial management.

Monitoring performance.

Regulation and compliance.

Competencies and recruiting the right talent.

Explanation:

The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5% of sales on account will be uncollectible. Required:
(A) Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
(B) Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.
(1) Uncollectible accounts expense is an estimate of current receivables that may eventually be uncollectible.
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.

Answers

Answer:

Quality Book Sales

1) Uncollectible accounts expense for Year 2 = $890

2) Net realizable value of receivables at the end of Year 2 = $69,650

B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:

(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.

Explanation:

a) Data and Calculations:

Accounts Receivable Balance, January 1, Year 2 =  $78,500

Allowance for Doubtful Accounts, January 1, Year 2 = 4,710

Sales on Account, Year 2  = 550,000

Collections of Accounts Receivable, Year 2  = 556,000

Uncollectibles written off = $2,850

Allowance for Uncollectible accounts = 0.5% of Sales ($550,000 * 0.5%)

= $2,750

1) Uncollectible accounts expense for Year 2 = $890 ($2,850 + $2,750 - $4,710)

2) Net realizable value of receivables at the end of Year 2 = $69,650

B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:

(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.

Accounts Receivable Account

Account Titles                   Debit     Credit

Beginning balance           $78,500

Sales                                550,000

Cash                                              $556,000

Allowance for Uncollectibles              2,850

Ending balance                                 69,650

Allowance for Uncollectible Accounts

Account Titles                   Debit     Credit

Beginning balance                         $4,710

Accounts receivable      $2,850

Uncollectible Accounts Expense      890

Ending balance                2,750

Find the final amount in the following retirement​ account, in which the rate of return on the account and the regular contribution change over time. ​$322 per month invested at ​4%, compounded​ monthly, for ​5 years; then 440​$ per month invested at ​5%, compounded​ monthly, for 5 years.

Answers

Answer:

Total value of the investment= $57,320.73

Explanation:

First, we need to calculate the future value of the first part of the investment. We will calculate the future value for the monthly deposit for five years and then the lump sum for another five years.

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

i= 0.04/12= 0.003333

n= 5*12= 60 months

FV= {322*[(1.003333^60) - 1]} / 0.003333

FV= $21,348.05

For the lump sum:

FV= PV*(1+i)^n

n= 12*5= 60

i= 0.05/12= 0.004167

FV= 21,348.05*(1.004167^60)

FV= $27,397.75

Now, the future value of the second part of the investment:

n= 60

i= 0.0041667

A= 440

FV= {440*[(1.004167^60) - 1]} / 0.004167

FV= $29,922.98

Total value of the investment= 27,397.75 + 29,922.98

Total value of the investment= $57,320.73

Cherry Valley Lumber's (CVL) lumber mill produces boards of various sizes and quality specifications for the home construction industry. CVL incurs joint costs in the initial phases of processing raw timber, such as transporting the logs to the mill, removing the bark from the logs, and cutting rough-cut boards. After the split-off point, CVL incurs costs in the Planing Department to finalize the finished boards of various grades and sizes. Which of the following statements regarding the costs at CVL is true?

a. The costs to finish the boards after the split-off point will not be traced directly to the finished boards according to the various grades and sizes produced. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will be traced to the final finished boards.
b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.
c. It will be impossible for CVL to directly trace any costs to the finished boards of various grades and sizes.
d. CVL will be able to directly trace all costs before and after the split-off point to the finished boards of various grades and sizes.

Answers

Answer:

Cherry Valley Lumber's (CVL)

The statement regarding the costs at CVL that is true is:

b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.

Explanation:

This is why the costs at split-off are usually apportioned to the different categories of products based on some chosen criteria, e.g. sales value, size, etc.  However, after split-off, costs that are incurred can easily be traced to the various grades and sizes of boards produced.  This simply means that after split-off, costs become traceable and direct to each board category.

Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended November 30, 2020 Sales revenue $7,465,900 Cost of goods sold Beginning inventory $1,868,500 Purchases 4,450,600 Goods available for sale 6,319,100 Ending inventory 1,331,800 Total cost of goods sold 4,987,300 Gross profit 2,478,600 Operating expenses 1,120,500 Net income $1,358,100 Additional information: 1. Accounts receivable increased $205,900 during the year, and inventory decreased $536,700. 2. Prepaid expenses increased $179,800 during the year. 3. Accounts payable to suppliers of merchandise decreased $345,700 during the year. 4. Accrued expenses payable decreased $105,800 during the year. 5. Operating expenses include depreciation expense of $95,300. Prepare the operating activities section of the statement of cash flows using the direct method

Answers

Answer:

Cash Flow From Operating Activities

Cash Receipt from Customers                       $7,260,000

Cash Paid to Suppliers and Employees       ($6,294,700)

Cash Provided by Operating Activities            $965,300

Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold                                         $4,987,300

Add Operating expenses                                $1,120,500

Total                                                                 $6,107,800

Adjustments :

Depreciation expense                                        $95,300

Decrease in Inventory                                     ($536,700)

Increase in Prepaid Expenses                          $179,800

Decrease in Accounts Payable                        $345,700

Decrease in Accrued Expense Payable          $105,800

Cash Paid to Suppliers and Employees       $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue                                                $7,465,900

Less Increase in Accounts receivable          ($205,900)

Cash Receipt from Customers                      $7,260,000

Minns Co. purchased a put option on Justin common shares on July 7, 2017, for $400. The put option is for 400 shares, and the strike price is $70. (The market price of a share of Justin stock on that date is $70.) The option expires on January 31, 2018. The following data are available with respect to the put option:

Date Market Price of Minns Shares Time Value of Put Option

September 30, 2017 $77 per share $250
December 31, 2017 $75 per share $75
January 31, 2018 $78 per share $0

Required:

Prepare the journal entries for Minns Co. for the following dates.

a. July 7, 2017—Investment in put option on Justin shares.
b. September 30, 2017—Minns prepares financial statements.
c. December 31, 2017—Minns prepares financial statements.
d. January 31, 2018—Put option expires.

Answers

Answer:

a. 7-Jul-17

Dr Put Option $400

Cr Cash $400

b. September 30, 2017

Dr Unrealized Holding gain or loss on income $150

Cr Put option $150

c. December 31, 2017

Dr Unrealized Holding gain or loss on income $175

Cr Put option $175

d. January 31, 2018

Dr Loss on settlement of put option $75

Cr Put option $75

Explanation:

Preparation of the journal entries for Minns Co. for the following dates.

a. Preparation of July 7, 2017 journal entry to record Investment in put option on Justin shares

7-Jul-17

Dr Put Option $400

Cr Cash $400

(Being to record Investment in put option)

b. Preparation of September 30, 2017 journal entry to record Minns preparation of financial statements.

September 30, 2017

Dr Unrealized Holding gain or loss on income $150

($400-$250)

Cr Put option $150

(Being to record Unrealized Holding gain or loss on income )

c. Preparation of December 31, 2017 journal entry to record Minns Preparation of financial statements

December 31, 2017

Dr Unrealized Holding gain or loss on income $175

($250-$75)

Cr Put option $175

(Being to record Unrealized Holding gain or loss on income )

d. Preparation of the journal entry to record January 31, 2018 Put option expires

January 31, 2018

Dr Loss on settlement of put option $75

Cr Put option $75

($75-$0)

(Being to record loss on settlement of put option)

LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month. rev: 09_23_2020_QC_CS-230013a. If LaMont receives one pass (worth $290) each month, how much of this benefit must he include in his gross income each year

Answers

Answer:

The IRS sets the limit on transportation benefits provided by an employer, for 2021, this limit is $270 per month, or $3,240 per year.

The total benefit received by LaMont should = 12 x $290 = $3,480

This means that he must include $3,480 - $3,240 = $240 as part of his annual gross income.

Other Questions
Refrigerant-134a enters an adiabatic compressor as saturated vapor at 0.18 MPa at a rate of 1.6 kg/s, and exits at 1 MPa and 60 degrees C. The rate of entropy generation in the turbine is(a) 0 kW/K(b) 0.47 kW/K(c) 3.34 kW/K(d) 1.26 kW/K(e) 14.1 kW/K 20 points if actually answer and within 5 minutes Type the five-syllable word from your spelling list that has two single vowels as separate syllables.exaggeration international organization superintendent A person eats food prepared on a kitchen counter covered with living infectious bacteria. Which of the following best describes an example of how the bacteria might resist the person's nonspecific immune defenses? Phagocytes that try to engulf the bacteria are soon destroyed by enzymes produced by the bacteria. B cells are blocked from binding to the bacteria antigens because of enzymes secreted by the bacteria. Infection would not be able to destroy the bacteria. Plasma cells that would normally mark the bacteria for destruction are avoided by the bacteria. through ________ pricing, a marketer pays for an advertisement based on how many times an advertisement appears on a webpage viewed by users. Method begins with a matrix or table describing the characteristics of a target population? a. probability b. snowball c. quota d. simple random sampling PLEASE PLEASE PLEASE HELPWITH 2D AND 3A ONLY, PLEASE SHOW YOUR WORKING can someone help me Im stuck on this and cant figure it out 1.ILL GIVE BRAINIEST FOR ANSWERChan invested $12,500 in a savings account that pays 2.5% simple interest. How much interest doeshe earn each year?F $350.50G $312.50H $322.50J $325.50 Cape Town is located in the .. hemisphere of Earth. The suitable word in the space would be PLSSSSSSSSS HELPWhy is the median income in Georgia below the national average?People do not need that much money to live.Public transportation and other conveniences are provided in Georgia.The people are less educated than in other parts of the country.The wages are kept low to attract more businesses. PLEASE HELP TAKING TEST NOW!!!!!!!!!!!!!! Many animals influence and contribute to ecosystem services. As pollinators, how do bees ultimately contribute to direct ecosystem services? (1 point)O Bees pollinate plant species that contribute to the carbon cycle.O Bees pollinate plant species that humans admire in nature.Bees pollinate plant species that produce oxygen that humans need.O Bees pollinate plant species that produce food. Youre having lunch at a nice restaurant with your Deaf friend and two hearing friends. What might you do to help communication? Clear any clutter you see on the table. Insist on being seated at a square table. Remove all the knives, forks, and spoons. Request that you be seated in a booth. Find a primitive root, for all positive integral m, modulo each integer below. (a) 7 (Hint: Using Corollary 5.15, find a common primitive root r modulo 7 and 72. The proof of Proposition 5.17 then guarantees that r is a primitive root modulo 7" for all positive integral m.) (b) 11m (c) 13m (d) 17m Has Mary poppins been made into a movie and if so when Help me please!!!!!! 3. What is the difference between contract for a piece of work and barter? provide an example. can someone please help me pls on the 3-days of their vacation the Davis family traveled 417 mi 45.3 mi and 366.9 mi how far did they travel all together Estimate the area under the graph of f(x) =10 sqrt x from x = 0 to x = 4 using four approximating rectangles and right endpoints. (Round your answers to four decimal places.)(a) Use four approximating rectangles and right endpoints.R4=______________________(b) Use four approximating rectangles and left endpoints.L4=_______________________ please help me do it