Answer:
The correct answer is letter "B": processing cost.
Explanation:
Processing cost is a method of costing implemented in large institutions to track the costs per unit incurred in the business. This approach is mainly used when the company produces items in mass-scale that are very similar or equal and the costs tend to be assigned in mid-term periods -typically one month.
In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country B, the production of 1 bicycle requires using resources that could otherwise be used to produce 15 lamps. Which country has a comparative advantage in making bicycles?
Answer:
Country A
Explanation:
given data
country A give 11 lamp produce = 1 bicycle
country B give 15 lamps produce = 1 bicycle
solution
we know that country comparative advance is require giving up less of product for producing 1 bicycle
so as that country A has comparative advantage over country B
it is Because Country B has to sacrifice more in order to have 1 unit of the bicycle
so comparative advantage in making bicycles is Country A
During May, the cost of goods manufactured was $55,000. The beginning finished goods inventory for the month was $22,000, and the ending finished goods inventory was $34,000. What was the cost of goods sold for May?
Answer:
$43,000
Explanation:
The cost of goods sold refers to the direct expense incurred in producing goods sold by a company. The formula for calculating the cost of goods sold (COGS) is as follows
COGS=Beginning Inventory+Purchases −Ending Inventory. For a manufacturing firm, Purchases is replaced by manufactured goods.
In this case:
Beginning inventory is $22,000
Ending inventory is $ 34000
Cost of manufactured goods is $55,000
Therefore:
COGS = $22000+ $55000 -$34,000
COGS =$43,000
__________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input).
Answer:
Secondary Activities
Explanation:
Secondary activities inside an organization are those who support the primary activity. The primary activity consists in the production and distribution of goods and/or services to customers, while secondary activities are meant to improve aspects of the primary activity.
For example, the goal of human resources is to create good labor conditions so that employees are happier, and therefore, more productive. And the goal of the technology department is to engage in research to produce new goods or provide new services in the future.
The labor union of a machinery manufacturing company went on strike demanding an increase in their wages. Craig, the chief human resource officer of the company, called a meeting with the labor union leader and came to a consensus that the company would increase the wages of the workers who take the night shifts. In the context of managerial roles, which of the following decisional roles does Craig illustrate in this scenario?
Answer:
disturbance handler role
Explanation:
Disturbance handler refers to a managerial role that handles unforeseen incidents and complexities. Disturbance Handler works as problem solver in leadership. ' Anomalous conditions ' within the control structure which may affect the network performance. Thus, from the above explanation we can conclude that the given case depicts disturbance handler role.
Groundswell Industries, a U.S.-based large conglomerate, competes in the hospitality, education, telecommunications, entertainment, airlines, and chemical industries. It currently operates in about 30 nations, and is planning to expand its portfolio by investing in rapidly developing countries. Which of the following strategies is Groundswell Industries pursuing?(A) zone pricing(B) niche marketing(C) product-market diversification strategy(D) process diversification strategy
Answer:C. Product-market diversification strategy
Explanation: Product-market diversification strategy is a business strategy where a company invests in different product lines like FOOD,MEDICALS, ENGINEERING,CEMENT etc and in different markets. This will make the Business organisation to be very versatile and able to over come certain harsh economic conditions. Many international and multinational companies have pursued this strategy to enhance their overall business growth and development.
Changes in tariffs and quotas are A) a means of slowing outsourcing. B) corporate strategies designed to maximize profits. C) business actions stimulating imports. D) efforts to stimulate choices among government agencies. E) government actions that reduce competition from international firms.
Answer:
E) government actions that reduce competition from international firms.
Explanation:
Quotas place a limit on the amount of goods that can be imported.
A tariff is a tax levied on imported goods.
Tariffs and quotas are imposed by the government and they limit the amount of import flowing into a country. This reduces the amount of competition from international firms.
I hope my answer helps you
Changes in tariffs and quotas are a form of protectionism, a policy adopted by governments to shield domestic producers and workers from foreign competition by making imported goods more expensive.
Explanation:Changes in tariffs and quotas are primarily means implemented by a government to reduce competition from international firms, making the correct answer E) government actions that reduce competition from international firms.
This is part of a concept known as protectionism. Governments engage in protectionism to safeguard their domestic producers and workers from foreign competition.
The key tools in protectionism are tariffs, import quotas, and non-tariff barriers. For example, a government may place tariffs on goods imported from abroad to make them more expensive and thereby encourage consumers to buy domestic products instead.
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JBC Customs only hires people who are curious and eager to learn as its managers believe that those are the two traits every employee needs to have if they want to contribute anything of value to the company. Every applicant is carefully screened, and only those applicants who have these two traits are chosen to proceed further in the hiring process. In this scenario, JBC Customs is using _____
A) concertive control
B) adaptive control
C) bureaucratic control
D) normative control
Answer: (D) Normative control
Explanation:
The normative control is refers to the process of governing the behavior and the values of the different types of standards and the norms. It basically handle all the financial, bureaucratic, financial and the quality related controls in an organization.
According to the given question, the normative control basically used by the JBC custom for the hiring process and the every applicant are carefully screen by an organization.
Therefore, Option (D) is correct answer.
In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon’s expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.(A) Global outsourcing (B) Acquisition (C) Licensing (D) Joint venture
Answer:
In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon’s expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy Licensing
Explanation:
Jerzy and Leon thought they could be licensed to start the business since both of them are expertise in design and navigatingspanish management and business practices. These should give them the edge to be licensed and kickj start the business of shoe manufacturing
Consider the following statement:
Local government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use.
Which of the following best characterizes the statement?
a. The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects.
b. The statement shows that all environmental regulations have benefits that exceed the costs.
c. The statement demonstrates that normative economics is often confused with positive economics.
d. The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria.
Answer:
a. The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects.
Explanation:
The government had good intentions by banning plastic grocery bags for environmental concerns, but this led to harmful E. coli infections.
The take-away is that when policies are implemented, apart from the primary effect the secondary long term effect should also be considered.
A profit-maximizing decision must be made about whether to keep a bed & breakfast operating. Until the place sells, the mortgage of $3000/month must be paid, since it is a sunk cost. If the restaurant operates, costs rise by $4000 per month, but revenue will be only $6000 per month. Until the building can be sold,
a.it is best to shut down the bed & breakfast since it is taking a loss.
b.it is best to ignore sunk costs and keep the bed & breakfast operating.
c.it is best to shut down the bed & breakfast even though it is making a profit
d.it is best to keep the bed & breakfast operating because it is profitable.
Answer:
b.it is best to ignore sunk costs and keep the bed & breakfast operating.
Explanation:
The owner of the store will face the mortgage cost wether the bed and breakfast is open or closed therefore it should be ignore in the short-term for the decision wether or not to keep the business open.
The business revenues are 6,000 while their cost 4,000 thie means there is a contribution of 2,000 then we subtract the mortage to get a loss 1,000
If closed the losses will increase to 3,000 asthe mortage expense would not disappear.
We should keep it open and look for ways to either sale or rent the space for a better gain than 2,000
Final answer:
In the short term, the bed & breakfast should keep operating since the revenue of $6000 per month covers the variable costs of $4000, contributing $2000 towards the fixed mortgage cost.
Explanation:
When considering whether to keep a bed & breakfast operating we must apply the shutdown rule. This rule advises that even if a business cannot cover all its fixed costs, it should continue to operate in the short term if it can cover its variable costs with the revenue generated. In this scenario, the bed & breakfast's variable costs rise by $4000 per month, but there is $6000 per month in revenue. While the mortgage is a sunk cost and remains unchanged whether the business operates or not, the revenue exceeds the variable costs by $2000, meaning that, in the short run, the bed & breakfast should continue operating as it contributes towards the fixed costs.
MPI Incorporated has $7 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 8%, and its return on assets (ROA) is 3%. What is MPI's times-interest-earned (TIE) ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
Times interest earned (TIE) = 2.67
Explanation:
EBIT = $7 bllion x 8% = $560,000,000
ROA = net income / total assets
3% = net income / $7,000,000,000
net income = $7,000,000,000 x 3% = $210,000,000
earnings before taxes = net income / (1 - tax rate) = $210,000,000 / 60% = $350,000,000
if EBIT = $560,000,000 and EBT = $350,000,000, then interests = EBIT - EBT = $560,000,000 - $350,000,000 = $210,000,000
Times interest earned (TIE) = EBIT / interest expense = $560,000,000 / $210,000,000 = 2.67
MPI's Times Interest Earned (TIE) ratio is 2.50.
To calculate the Times Interest Earned (TIE) ratio, we need to use the following formula:
TIE = EBIT / Interest Expense
First, we need to calculate Earnings Before Interest and Taxes (EBIT):
ROA = EBIT / Total Assets
So, EBIT = ROA × Total Assets
EBIT = 0.03 × $7 billion
EBIT = $210 million
Next, we need to calculate Interest Expense:
Interest Expense = EBT × Tax Rate
Interest Expense = (EBIT - Interest Expense) × Tax Rate
Interest Expense = ($210 million - Interest Expense) × 0.4
Interest Expense = $84 million
Now, we can calculate the TIE ratio:
TIE = $210 million / $84 million
TIE = 2.50
termountain Healthcare is a very large organization with thousands of employees. List at least four methods it uses to communicate with employees. Why do you think this organization feels the need to use so many different methods to communicate?
Answer:
1) ELECTRONIC MAILS(Email)
VERBAL COMMUNICATION( 2)MEETINGS AND FORUMS)
3)PRINT MEDIA( NOTICE BOARDS,HAND BILLS)
4)WRITTEN LETTERS
THE NEED FOR COMMUNICATION
(1) To ensure effective growth and development of its employees.
(2) To ensure effective performance of the entire Team.
(3) To ensure everyone works in line with its STRATEGIC OBJECTIVE.
Explanation: Communication is key to effective performance of Organisations, proper communication helps to ensure that an organization is in constant interaction with its employees. Most Global Organisations will have to device several means of communication with its team to help it's business because Communication is needed for successful Business.
Sunset Resort, a successful 100-year-old hotel and resort, entered into a co-marketing arrangement with Sleepytime Hotels, a five-star hotel chain. Both companies benefit from the new relationship. Pleasant is now able to market its facility and services through Sleepytime's marketing team, and Sleepytime Hotels now offers access to an upscale resort that it can recommend to its customers who are looking for a resort experience. Sleepytime Hotels and Sunset Resort can be considered strategic allies.
Answer:
Yes its true that both companies are strategic allies.
Explanation:
In strategic alliance, two companies work together to achieve their combined objectives. For example if we talk about Sony Ericson K510i cellphone, it was one of best selling cell phones at its time because two companies Sony and Ericson worked together to increase their sales and earn profit. One of these had display and camera capabilities and the other had cellphone designs, etc. These were the things that made the product differentiated from the rest of the cellphones and we see that both companies earned a lot from it.
Sunset Resort and Sleepytime Hotels have entered into a co-marketing arrangement, making them strategic allies to benefit from each other's services.
Explanation:Sunset Resort and Sleepytime Hotels can be considered strategic allies as they have entered into a co-marketing arrangement whereby both companies benefit from the new relationship. Sunset Resort is able to market its facility and services through Sleepytime's marketing team, while Sleepytime Hotels can recommend Sunset Resort to its customers looking for a resort experience. This partnership allows both companies to expand their offerings and reach a wider customer base.
_______ are special-purpose printers that use output from graphics tablets or other graphical input devices that are typically found in architectural and engineering environments.
Answer:
The correct word for the blank space is: Plotters.
Explanation:
Plotters are high precision printing and cutting devices. They are used to print plans and projects. They are considered external devices that allow drawing o scheme diagrams and graphs. There are monochromatic plotters and other versions of four, eight, and twelve colors.
The correct answer which can be used to complete the given sentence is:
Plotters
Based on the given question, we can see that we need to find the name of a special purpose printer which makes use of output from graphical input devices.
With this in mind, we can see that a plotter is the correct answer because they make use of high precision to print building plans and are considered as external devices because they are not like the conventional printers which makes use of papers.
Therefore, the correct answer is plotters
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In January you made your final payment on your car loan and in July you got a small home equity loan to replace windows and add a deck. How would you classify these activities in your cash flow statement?
Answer:
financing activities
Explanation:
Cash flows include:
operating activities financing activities: the net amount of money an individual or an organization receives through external funding operations (debts and loans basically). They include money received through new loans or money repaid to creditors. investing activitiesOrganizational markets is another name for _____. A. single-sourcing markets B. outsourcing C. business-to-business markets D. government markets E. resellers
Option C
Organizational markets is another name for business-to-business markets
Explanation:B2B (business-to-business) marketing is retailing of goods to companies or another businesses for aid in making of goods, for application in usual business processes, or resale to different users, so as a wholesaler marketing to a retailer.
Business to business commits to trade that is carried within organizations, preferably than within a firm and personal customers. While buyers accept goods based not solely on cost but on reputation, rank, and additional sensitive triggers, B2B customers obtain judgments on value and gain inherent simply.
Which of the following is a reason for product failure in a firm?a. Resorting to radical innovation with the new products process b.Avoiding the use of the ready—fire—aim approach in the product development process c.Chasing a moving target d.Paying too much attention to customer needs
Answer:
Seemingly the most suitable answer is D. Paying too much attention to customer needs.
Explanation:
Ever heard the impression too much of anything is too bad? That's the case here. When too much attention is given to the customer need, the process of development get stagnated in one point and the company loses the track of their ability to produce such a "perfect" product.
The company should consider their financial.capacity and resources availability as well.
According to the Comparative Analysis of Tools and Technologies for Policy-Making theory, there are 11 possible main categories of Information Communications Technology (ICT) tools and technologies that can be used for policy-making purposes.True / False.
Answer:
True
Explanation:
The eleven categories are
Visualization : for better understanding of dataArgumentation: visualize the structure of complex arguments using graphseParticipation : encourages participation in social and political processOpinion mining : interpret public comments written in different applicationSimulation :guides towards making decision concerning future actionsSerious games:Train usersPolicy making : to help in policy makingPersuasive tools : to convince users for change of attitudeSocial network analysis : analyse social network users behavioral patternBig data : supports helps in processing large dataSemantics and linked data: analyzing and publishing large dataWhich of the following does not describe a trial balance? a. Proves that all transactions have been recorded b. Proves the mathematical equality of debits and credits after posting c. Assists in the preparation of the financial statements d. May uncover errors in journalizing and posting
Answer:
Statement which doesn't describe a trail balance is: Option A: Proves that all transactions have been recorded.
Explanation:
A Trial balance lists the accounts and their balances. It is like an internal control made by the accountants to check general ledger's accuracy. It extracts the list of debit and credit balance from the ledger and adds them. They should be equal else some error has been made. These errors might be human. It doesn't prove that company has recorded all its transactions.
So, all statements are correct describing trial balance except Option A.
Benny spends all of his money buying wine and cheese. Diminishing marginal utility applies to both goods. The marginal utility of the last bottle of wine he bought is 60, and the marginal utility of the last block of cheese he bought is 30. The price of wine is $3, and the price of cheese is $2. Benny A. is spending too much money on wine and cheese. B. should buy more wine and less cheese C. should buy more cheese and less wine. D is buying wine and cheese in the utility-maximizing amounts QUESTION 28 3.85 pointsSave Answ Suppose ivy buys only two things, books and coffee, and receives the same satisfaction from the last book bought as she did from the last coffee bought. Books cost twice as much as coffe, and she has spent all of her money. Diminighing marginal utility applies to both goods. If she is trying to maximize her utility A vy should buy more books and less coffee B hy should buy more coffee and fewer books C vy should buy more coffee and more books. yis making the right choice
Answer:
B) should buy more wine and less cheese
Explanation:
Eula, a company that manufactures soda, offers its latest products at very low prices. Eula's strategy is based on the assumption that more customers will be willing to buy its products if they are offered at lower prices. Eula has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Eula has implemented the _________ strategy.A. high/low pricing
B. skimming pricing
C. penetration pricing
D. loss-leader pricing
Answer:
C. penetration pricing
Explanation:
Penetration pricing is a marketing strategy where price is set to a low amount in order to get a large portion of the market within a short time.
It is based on the logic that consumers will prefer to buy goods at lower prices.
Penetration pricing is used to get market share and profits are gained at scale. That is small profits on each sale, and when there is large sales turnover profit will be high.
Chaos State Bank has an old computer system which can go down for weeks at a time, leaving customers unable to access their accounts online. Many customers have left the bank for banks with more reliable computer systems. Which type of risk would this be an example of_____________A. Operational riskB. Legal riskC. Compliance riskD. Strategic riskE. Reputation risk
Answer: A. Operational risk
Explanation:
Operational risk is a possibility of loss that happens as a result of inefficient system or policies, it could also be a result of someone not following internal policies or due process. Operational risk can be as a result of factors such as natural disasters, unfavourable or weak financial policies, fraudulent acts, etc.
Which of the following are steps in the warehouse management process?a. Create goods receiptb. Confirm transfer orderc. Create stock transfer orderd. Create transfer requiremente. Post goods issue
Answer:
Create transfer order
Confirm transfer order
Explanation:
A warehouse management system (WMS) refers to the software and procedures allowing companies to track and oversee warehouse activities from the moment that goods or products reach a warehouse before they pass out. Warehouse activities involve stock management and process picking and auditing.
In developing the transfer order stage, process must decide all the containers in the storage that are impacted by the transfer of the products (source storage bin, destination storage bin, and possibly also the return storage bin) and adjust the processing bin data directly.
Within this step, the supervisor confirms a transition order or transfer order product and verify that the quantity of material required has actually been moved from one area to the next, and that the processing of the transfer order or item has also been finished.
The listed steps are part of the warehouse management process that ensures inventory accuracy and efficient flow of goods in a warehouse as part of the larger supply chain sequence from production to distribution.
The steps in the warehouse management process that you've listed are integral to ensuring a seamless flow in the supply chain. These steps fit into larger stages, which include the typical supply chain processes, such as:
Extraction of raw materialsAcquisition of componentsProductionInventoryTransportationWorking with wholesalersDistribution to retailersIn the context of a warehouse management system (WMS), the steps you have listed play specific roles:
Create goods receipt - This is the step where the warehouse takes account of the received goods and updates its inventory.Confirm transfer order - Here, a warehouse worker completes the task of moving goods within the warehouse as directed by the system.Create stock transfer order - This step involves creating an order for moving stock from one location to another internally.Create transfer requirement - This initiates the process of moving goods, usually based on a sales order or production requirements.Post goods issue - This is final step where the goods leave the warehouse, updating the inventory to reflect the goods that have been dispatched or sold.Each of these steps helps in developing the product, developing the process, and developing the controls that will ultimately be transferred to Operations as part of the overall warehouse management strategy.
In the implementation phase of the marketing process, ethics can be introduced by _______. a. including ethical statements in the firm's mission and vision b. statements policing the violation of human rights and child labor laws c. encouraging employees to exhibit ethical behavior d. putting systems in place to check ethical issues and react to changes
Answer:
The correct answer is C
Explanation:
In the phase of the implementation or execution of the strategy of the marketing, when the business or firms are recognizing the potential markets and the methods to deliver the 4Ps and the firms also need to consider the issues of the ethical.
Under this phase, the ethics is defined as encouraging or inspire or uplift the employees in order to exhibit the ethical behavior.
Genesis Technologies has adopted an SOA approach to systems development. A new "disruptive" technology, Senstor, has recently been launched in the market which promises to provide significant benefits to software companies that focus on collaborative process. In such a scenario, how is Genesis Technologies most likely to react?
Answer:
It will use resources efficiently to adapt itself to the new technology
Explanation:
SOA which means service oriented architecture is a pattern of designing new software where the other components depends on the application components through a network of communication protocols.
Being a new technology , it will take a period of time before Genesis can have a good understanding that will facilitate an effective use , therefore it has to use its resources efficiently during the early stage of the product adoption
When an organization has a strong talent pool available from which it can draw employees, the organization is positively influenced by the ______ in the external environment on the organization.
Answer: Labor force
Explanation: Labor force refers to the section of individuals within an environment who are employed and those who are seeking to get a job within an organization. The term labor force also called work force could refer to workers within a particular organization or those within a certain geographic location. An environment with a pool of talented labor force will no doubt have a highly positive on the organizations within that environment because these organizations will be able to recruit or hire brilliant minds which is a characteristic of the labor force in the environment.
The distinction between substitutes and complements is A. substitute goods are used together while complementary goods are used for the same purposes. B. when income increases, demand for a complementary good decreases while demand for a substitute good increases. C. substitute goods are used for the same purposes while complementary goods are used together. D. when income increases, demand for a substitute good increases while demand for a complementary good falls.
Answer:
C. substitute goods are used for the same purposes while complementary goods are used together
Explanation:
Substitute goods are goods that can be used in place of another good because they serve the same purposes. For example, butter and margarine can be substitutes. If the price of butter increases, the demand for butter falls and consumers shift to consuming margarine.
Complementary goods are goods that are consumed together. For example, gasoline and car are complementary goods. If the price of car falls, the demand for gasoline rises.
I hope my answer helps you
Substitute goods can be used interchangeably to fulfill similar purposes, while complementary goods are typically consumed together to complement each other.
Substitutes and complements are terms used to describe the relationship between two goods in economics. Substitute goods are products that can be used in place of each other to satisfy a particular need or want.
For example, if the price of tea increases significantly, people might switch to coffee as a substitute to fulfill their desire for a hot beverage. On the other hand, complementary goods are items that are often consumed together because they enhance each other's utility.
Classic examples are peanut butter and jelly or computers and software - when the price of one increases, the demand for the other tends to decrease.
Hence the correct option is (c).
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Eric Christie and Johnnie Pitt organize a partnership. Their partnership agreement states that Christie will receive two-thirds of the partnership income or loss and Pitt will receive the remaining one-third. On January 2, the two partners agree to accept Peter Morgan as a partner with a 10% interest if Morgan invests $50,000 cash. At the time of Morgan's admission, the partnership`s accounting records show that Christie has recorded equity of $210,000 and Pitt has recorded equity of $60,000. The bonus that will be allocated to Christie as a result of this transaction (rounded to the nearest dollar) is:_______
Final answer:
Eric Christie receives a bonus of $90,000 when Peter Morgan invests $50,000 for a 10% interest in the partnership based on the implied and book values of Christie's equity before and after the transaction.
Explanation:
The transaction of accepting Peter Morgan as a partner involves calculating the bonus allocation for the existing partners, Eric Christie and Johnnie Pitt. We begin by determining the total capital or equity before Morgan's investment, which is $210,000 for Christie and $60,000 for Pitt, resulting in a total of $270,000. When Morgan invests $50,000 for a 10% interest, it implies the total post-investment valuation of the partnership to be $500,000 ($50,000 is 10% of $500,000). Thus, the implied value of the existing partnership before the investment is $450,000 ($500,000 - Morgan's $50,000).
To determine the bonus to Christie, we calculate the difference between the implied value of his share before the investment and the book value of his equity. Before the investment, two-thirds of the implied $450,000 value is $300,000. Subtracting Christie's book equity of $210,000 from this amount gives us a bonus of $90,000. However, since Christie and Pitt must now share their combined bonus with Morgan (who doesn't get a bonus but instead pays for his share), Christie's bonus is his two-thirds share of the $90,000 (the combined bonus before deducting Morgan's investment).
The calculation of Christie's bonus is as follows:
Total equity before Morgan's investment: $210,000 (Christie) + $60,000 (Pitt) = $270,000Total post-investment valuation: $50,000 / 10% = $500,000Implied value of existing partnership: $500,000 - $50,000 = $450,000Christie's share of the implied value: 2/3 of $450,000 = $300,000Bonus to Christie: $300,000 (implied share) - $210,000 (book equity) = $90,000Therefore, the bonus allocated to Christie as a result of the transaction is $90,000.
Elba Company leased machinery to Conecuh Company on January 1, 2017, for a ten-year period expiring December 31, 2026. Equal annual payments under the lease are $300,000 and are due on January 1 of each year. The first payment was made on January 1, 2017. The rate of interest used by Elba and Conecuh is 9%. The cash selling price of the machinery is $2,100,000 and the cost of the machinery on Elba's accounting records was $1,860,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Elba, what amount of interest revenue would Elba record for the year ended December 31, 2017?A. $0
B. $162,000
C. $189,000
D. $81,000
Answer:
The interest charged for the year will be the amount that Conecuh has to pay at the start of the year. In this case the amount that Conecuh has to pay at the start of the year (January 1, 2017) is the amount left after his equal annual payment. The price at which Conecuh purchased is $2,100,000 of which $300,000 was paid at the start of the year. So the residue amount is:
Liability = $2,100,000 - $300,000 = $1,800,000
So the interest charge which is 9% is= $1,800,000 * 9% = $162,000
Option B is the correct answer.
Becky asks her friend Maggie to walk her dog for her, and Maggie agrees. While out walking, the dog gets away from Maggie and runs into Mr. Edwards' garden, digging up some expensive plants. Which statement best characterizes this situation?
a. Becky is liable for the damages to Mr. Edwards' garden, because she exercised control over her agent, Maggie.
b. Maggie is liable for the damages to Mr. Edwards' garden, because she was walking the dog at the time of the damage.
c. Both Becky and Maggie are equally liable for the damages to Mr. Edwards' garden--the dog belongs to Becky, but Maggie was walking him at the time of the damage.
d. Neither Becky nor Maggie is liable for the damages to Mr. Edwards' garden because no agency relationship existed between Becky and Maggie.
Answer:A. Becky is liable for the damages to Mr. Edwards' garden, because she exercised control over her agent, Maggie.
Explanation:This is a situation where a person is working under the instructions of another, Becky will take the full responsibility for the damage done by the Dog to Mr. Edwards garden.
This can be seen also in conditions where a principal gives instructions or job to an Agent, the actions of the agent will directly impact the Principal as the Agent is working according to the directives of the principal.
As per the text, Becky talks to friend Maggi to walk her dog and while walking the dog gets away. The Maggi runs into Mr. Edward garden to dig dome expensive plants.
The statement that would best characterize her would be Berkey is liable for the damages to Mr. Edward garden as she gave the control to her agent Maggi.Hence the option A is correct.
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