Answer:
The correct answer is B
Explanation:
Return of premium rider is the kind of policy where the add on that returns, the premiums paid if the insured person or outlives the terms and the conditions of the policy.
So, in this case, Insured person dies within the time period, and the beneficiary received the face amount and in addition all the premiums paid. It is the return of premium which is linked with the policy.
A self-employed taxpayer buys a new business automobile during the year. What method is permitted in computing car and truck expenses on Schedule C?
a. The actual cost method
b. The standard mileage rate method
c. Either the actual cost or the standard mileage rate method
d. The actual mileage method
e. None of the above
Answer:
The correct answer is letter "B": The standard mileage rate method.
Explanation:
Vehicle expense deductions are offered on Schedule C for self-employed taxpayers. If the vehicle expenses are itemized and are not part of a regular loan, part of the lease payment can be considered as a business expense. This is provided thanks to the standard mileage rate deduction. Parking and tolls can also be subject to deduction.
University Book Store buys women's polo T-shirts from a supplier, which is $16 per unit. The store sells 50,000 T-shirts per year. The annual carrying cost of T-shirts is 25% of its purchasing price, and the ordering cost is $40. If the book store operates for 250 days each year, and delivery of an order takes 2 working days. How low can the inventory get before the book store places an order? Group of answer choices 500 250 400 200
Answer:
It is 400 units
Explanation:
Re-order level= Maximum usage x Maximum lead time
Maximum usage per day = 50,000/250
= 200 units per day
Maximum lead time (as given) = 2 days
Hence, Re-order level =200* 2
=400 units
When inventories reach this level, it is important that an order should be placed to replenish inventories. The reorder level is determined by consideration maximum usage per day and maximum lead time
Maximum lead time is the is the time between placing an order with a supplier, and the inventory becoming available.
Note
In case it is required to find order size that would minimize the total cost ?
Answer
The order size that would minimize total cost is called Economic Order Quantity (EOQ)
EOQ = √(2*Co*D)/Ch
Where Co =Ordering cost per order =$40
Ch= Holding cost per unit= 25%*$16=$4
D= Annual Demand = 50,000 units
EOQ = √(2*40*50,000)/4
= 1000 units
The University Book Store should order new stock when the inventory level drops to 400 T-shirts. This calculation is based on the daily demand and the lead time for delivery.
Explanation:The student's question pertains to Order Point calculation in inventory management. The order point (also known as reorder point) signifies when new inventory should be ordered to avoid running out of stock. It takes into account the delivery lead time and the number of items required daily.
From the information provided, we know that the University Book Store operates for 250 days annually, and the delivery lead time for an order is 2 days. Therefore, the lead time demand or the number of items required during the lead time would be the daily demand multiplied by the lead time. The University Book Store sells 50,000 T-shirts per year, so the daily demand would be 50,000 / 250 = 200 T-shirts. Hence, during a lead time of 2 days, the expected demand would be 200 × 2 = 400 T-shirts. Thus, the inventory should reach this level before the University bookstore places a new order.
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sales rep need to generate multiple quotes for customer and track the information in sales force. What solution will you recommend?
Answer:
Customer Relationship Management (CRM) Software
Explanation:
Customer Relationship Management (CRM) Software makes use of company data insight and analytics in improving customer interaction. Sales rep can make use of CRM software to engage clients effectively in a way that improves bottom line.
Which of the following is a fixed cost?
a. payments to a electric utility
b. cost of raw materials
c. wages to hire assembly line workers
d. payment to hire a security worker to guard the gate to the factory around the clock
Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expenses to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a________________.
Answer: Master Budget
Explanation:
Master budget is basically refers to the business budget strategy in which the organization preparing all the financial plans and include all the financial related statement.
The master budget is one of the most expensive business strategy which include various types of promotional levels, expected sales in the future and the capital investment.
The main purpose of the master budget is that it provide specific details about the costs and the production target. Therefore, Master budget is the correct answer.
Amachine costing $176,000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machine was $80,000. An insurance check for $200,000 was received based on the replacement cost of the machine. The entry to record the insurance proceeds and the disposition of the machine will include a ______.(A) gain on disposal of $24,000. (B) credit to the Equipment account for $120,000(C) credit to the Accumulated Depreciation account for $80,000.(D) gain on disposal of $104,000.
Final answer:
In accounting, when an asset is disposed of, a gain or loss is recognized based on the difference between the asset's book value and the proceeds received. In this case, the machine had a book value of $96,000 and the insurance proceeds were $200,000, resulting in a gain of $104,000, so the correct entry is (D).
Explanation:
The question involves understanding accounting transactions related to the disposal of an asset and recognizing gains or losses on such disposals. The machine had an original cost of $176,000, and its accumulated depreciation was $80,000. The book value (cost less accumulated depreciation) at the time of its destruction was therefore $176,000 - $80,000 = $96,000. The insurance settlement received was $200,000, which resulted in a gain because the proceeds exceeded the book value of the asset.
The correct journal entry to record the transaction would be:
Debit Accumulated Depreciation for $80,000Debit Cash (for the insurance proceeds) for $200,000Credit Machinery (for the original cost) for $176,000Credit Gain on Disposal of Machinery for the difference: $200,000 (proceeds) - $96,000 (book value) = $104,000Thus, the correct answer is (D), a gain on disposal of $104,000.
Wozniacki and Wilcox form Jewel LLC, with Wozniacki receiving a one-half interest in the capital and Wilcox receiving a one-half interest in the capital of the LLC. (Ignore any profits interest for this problem.) Wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the LLC. Wilcox contributes $50,000 cash. The value of a one-half capital interest in the LLC (for each member) is $50,000.
a. How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
b. How much is Wozniacki’s basis in the LLC interest?
c. How will Jewel treat this amount?
Answer and Explanation:
a. $50,000 compensation income (As it is already mentioned that Wozniacki receives the money for tax planning service prior to the formation of the LLC as compensation.
b. $50,000 (For each member it is $50,000. Therefore, for Wozniacki it will be also be $50,000)
c. As a business deduction (due to partnership) Wozniacki and Wilcox have formed Jewel LLC, therefore, distribution is a business deduction in the form of payments to both the partners.
Match the description in the right column with the information characteristic in the left column.
1. Relevant a. The report was carefully designed so that the data contained on the report became information to the reader
2. Reliable b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.
3. Complete c. The data on a report was checked by two clerks working independently
4. Timely d. An accounts receivable aging report that included all customer accounts
5. Understandable e. A report checked by 3 different people for accuracy
6. Verifiable f. An accounts receivable aging report used in credit granting decisions
7. Accessible g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit
This question is about matching descriptions of information characteristics with their corresponding statements in the context of reports.
Explanation:The statements can be categorised as -
1. Relevant – b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.
2. Reliable – c. The data on a report was checked by two clerks working independently.
3. Complete – d. An accounts receivable aging report that included all customer accounts.
4. Timely – g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit.
5. Understandable – a. The report was carefully designed so that the data contained on the report became information to the reader.
6. Verifiable – e. A report checked by 3 different people for accuracy.
7. Accessible – f. An accounts receivable aging report used in credit granting decisions.
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In 2019, Pine Corporation had losses of $20,000 from operations. It received $180,000 in dividends from a 25%-owned domestic corporation. Pine’s taxable income is $160,000 before the dividends-received deduction. What is the amount of Pine’s dividends-received deduction?
Answer:
Consider the following calculations
Explanation:
Net income per books $65,000
Add back:
Federal income taxes 9,700
Excess contributions 3,000
Life insurance premiums 10,000
$87,700
Subtract:
Tax-exempt interest (1,500)
Excess depreciation (4,500)
Taxable income $81,700
Dividend received deduction = 160000 x 80% = 128000 (full DRD doesn't create loss).
DRD will be 80% of taxable inome because percent partnership is 25% which is between 20 to 80%.
Suppose that real GDP is currently $ 13.8 trillion and potential real GDP is $ 14.0 trillion, or a gap of $ 200 billion. The government purchases, multiplier is 5.0, and the tax multiplier is 4.0
Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP?
1.Government spending will need to be increased by $ _________ billion (enter your response rounded to the nearest whole number).
2. Holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential GDP?
Taxes will need to be cut by $ _________ billion (enter your response rounded to the nearest whole number).
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Final answer:
To bring the economy to equilibrium at potential GDP, government spending will need to be increased by $40 billion, while taxes will need to be cut by $50 billion.
Explanation:
The multiplier effect in economics refers to how an initial change in spending can have a larger impact on the equilibrium level of real GDP. To determine how much government spending needs to be increased to bring the economy to equilibrium at potential GDP, we can use the formula:
Change in GDP = Change in government spending * Government purchases multiplier
In this case, the gap between real GDP and potential GDP is $200 billion. The government purchases multiplier is 5.0. Therefore, the government spending will need to be increased by $200 billion / 5.0 = $40 billion to bring the economy to equilibrium at potential GDP.
To calculate how much taxes will have to be cut, we can use the formula:
Change in GDP = Change in taxes * Tax multiplier
In this case, we are trying to reach potential GDP, so the change in GDP is $200 billion. The tax multiplier is 4.0. Therefore, taxes will need to be cut by $200 billion / 4.0 = $50 billion to bring the economy to equilibrium at potential GDP.
The quantity theory of money is based upon the equation of exchange and assumes that V and Q are both ________ over time..
Answer:
stable
Explanation:
The quantitative theory of money is an economic theory that aims to explain the causes of inflation, that is, the variations in prices and the value of money in a country. To explain inflation, the quantitative theory of money relates the money supply to the general price level.
Suppose the reserve requirement is 10%.
a. If the Federal Reserve decreases the reserve requirement, banks can lend out:
A. fewer reserves, thus decreasing the money multiplier and decreasing the money supply.
B. more reserves, thus increasing the money multiplier and increasing the money supply.
C. fewer reserves, thus increasing the money multiplier and increasing the money supply.
D. more reserves, thus decreasing the money multiplier and decreasing the money supply.
b. The Federal Reserve:
A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.
B. needs permission from the president before making changes to the reserve requirement.
C. does not have the ability to change the reserve requirement since banks determine the amount of reserves to lend.
D. changes the reserve requirement frequently in order to make adjustments to the money supply.
Answer:
1)
B. more reserves, thus increasing the money multiplier and increasing the money supply.
In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.
If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.
2)
A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.
The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).
Explanation:
Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets.Mark appears to be suggesting that Lite Bite use a(n):
A. corporate distribution system.
B. franchise arrangement.
C. manufacturer-sponsored marketing chain.
D.administered distribution system.
Answer:
D.administered distribution system.
Explanation:
Administered Distribution System is a system in which producer manages all the marketing functions at the retail outlets.
The idea of Manifest Destiny included all of the following beliefs EXCEPT:
a. Commerce and industry would decline as the nation expanded its agricultural base.
b. The use of land for settled agriculture was preferable to its use for nomadic hunting.
c. Westward expansion was both inevitable and beneficial.
d. God had selected America as a chosen land and people.
e. The ultimate extent of the American domain was to be from the tropics to the Arctic.
Answer:
(A). Commerce and industry would decline as the nation expanded its agricultural base.
Explanation:
"Manifest destiny" (coined by John Sullivan in 1845) is an idea that God has destined the United States to expand its territories and dominate the whole North American continent from the Atlantic to the Pacific.
Expansion of territory led to availability of more lands for farming and as such, agricultural expansion and increase in food supply. It also brought about an increase in commerce and industry.
Final answer:
The belief that commerce and industry would decline with national expansion is not a part of Manifest Destiny; rather, Manifest Destiny encompassed the expansion of American democratic institutions and commerce from coast to coast, the Americanization of new territories, and the divine right to expand.
Explanation:
The idea of Manifest Destiny included several core beliefs but did not suggest that commerce and industry would decline as the nation expanded its agricultural base. This notion contradicts the widely-held beliefs of the time that American expansion was about spreading and enhancing commerce and industry, not diminishing it. According to the beliefs intrinsic to Manifest Destiny, the nation's domain was to extend "from sea to shining sea", expanding democratic institutions and American values across the continent. It was believed that God had conferred upon America the right and destiny to expand its territory and influence, Americanizing the diverse populations encountered. Moreover, this expansion was seen as a way to spread freedom, with the idea that the settled agricultural use of the land was superior to nomadic hunting.
A company earned net income of $ 80 comma 000 during the year ended December 31, 2016. On December 15, the company declared the regular dividend on its 2% preferred stock (13 comma 000 shares with total par value of $ 130 comma 000) and a $ 0.75 per share dividend on its common stock (65 comma 000 shares with total par value of $ 650 comma 000). The company paid the dividends on January 4, 2017. Did Retained Earnings increase or decrease during 2016? By how much?
Answer:
Retained Earnings increased $28,650 in 2016.
Explanation:
The total increase in Retained Earnings account = Net income = $80,000;
The total decrease in Retained Earnings account = Dividend paid to common shares + Dividend paid to preferred shares = Dividend per common share x Number of common share outstanding + % dividend on preferred stock x par value of preferred stock x number of preferred stock outstanding = 0.75 x 65,000 + 2% x (130,000 / 13,000) x 13,000 = $51,350;
So, Net effect on Retained Earnings Account = $80,000 - $51,350 = $28,650 ( increase).
Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the bank each year and the property taxes they pay each year. First create a separate worksheet from the amortization schedule. Title this worksheet Analysis. In this worksheet, create a column titled Income starting at $90,000 and increasing at 3% for 20 years. What is their income after 20 years
Answer:
Their income after 20 years would be 72,550 dollars.
Explanation:
The income after 20 years can easily de determin by using compounding
formula
Future Value = Present Value (1 + I)^ 20
= 90,000 (1 + 0.03)^ 20
= 162,550 dollars
Income can be determing by subtracting Pv from Fv i.e
Income = 162,550 - 90,000 = 72,550
Calculation on excel sheet
A B C D
1 90,000 1.03 = A1 * 1.03 = C1-A1
2 = D1 1.03 = A2 * 1.03 = C2-A2
20 = D19 1.03 = A20 * 1.03 = A20 - C20
* In work sheet colunm D will show income on investment.
1) Why might investors prefer floating rate notes over a fixed rate bond?
2) Why might Hologen prefer to issue fixed rate bonds rather than floating rate notes?
Answer:
These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.
Explanation:
1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.
2)
For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.
Diaz Company has developed the following standards for one of its products:Direct materials 3.50 pounds × $4 per poundDirect labor 1 hour × $12 per hourVariable manufacturing overhead 1 hour × $6 per hourThe following activity occurred during the month of April:Materials purchased 2,000 pounds costing $22,500Materials used 1,600 poundsUnits produced 250 unitsDirect labor 550 hours at $12.50 per hourActual variable manufacturing overhead: $2,500The company records materials price variances at the time of purchase.The total variable standard cost is:_______
Answer:
$8000
Explanation:
Total variable cost per unit (standard):
= Direct materials + Direct labor + Variable manufacturing overhead
= [3.5 pounds × $4 per pound] + [1 hour × $12 per hour] + [1 hour × $6 per hour]
= $14 + $12 + $6
= $32 per unit
Total variable standard cost:
= Per unit cost × Units produced
= $32 × 250
= $8000
Martha and Lew are married taxpayers with $400 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $400 as a foreign tax credit. Their tax bracket is 24 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A?
Martha and Lew should claim the foreign tax credit instead of the deduction, as it would provide a greater tax benefit given their 24 percent tax bracket.
Explanation:Martha and Lew need to decide between taking the foreign tax credit or claiming a deduction for foreign taxes paid on their Schedule A. Given that they are in the 24 percent tax bracket and itemize deductions, the better choice would usually be to claim the foreign tax credit. This is because a credit reduces their tax liability dollar-for-dollar, making it more valuable than a deduction which only reduces the amount of income subject to tax. Therefore, if they have enough foreign income to claim the full $400 as a credit, it would typically provide a greater tax benefit than a deduction.
A minimum wage above $10 per hour would prevent the labor market from reaching equilibrium.a. True b. False
Answer:
a. True
Explanation:
A minimum wage above $10 per hour is the binding minimum wage in the labour market so this would prevent the labor market from reaching equilibrium.
It is false that a minimum wage above $10 per hour would prevent the labor market from reaching equilibrium if the equilibrium wage is already above that level. The impact of a minimum wage on the labor market depends on its relation to the equilibrium wage, and significant increases can cause a surplus of labor and possible unemployment.
Explanation:It is false that a minimum wage above $10 per hour would necessarily prevent the labor market from reaching equilibrium. If the equilibrium wage is already above the minimum wage, such as at $10 per hour, then setting a minimum wage at this level would not impact the labor market. However, if the minimum wage is set significantly higher than the equilibrium level, such as $15 per hour when the equilibrium is $10 per hour, it could lead to a surplus of labor, where the quantity of labor supplied exceeds the quantity demanded, potentially causing unemployment to rise.
The impact of minimum wage increases on employment levels and the labor market is a complex issue with varying outcomes depending on the relative position of the minimum wage and the market equilibrium wage. Empirical evidence often does not align with simple economic models that predict large increases in unemployment from increases in minimum wage. This discrepancy suggests that other factors may be at play that mitigate the textbook predictions of unemployment.
When Terrance sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approximately $10,000 at the time. After she graduated, Terrance decided to keep the house for use as a rental. The fair market value at the time of the conversion was $160,000 and the price of the land had risen to $20,000. The basis for depreciation of the house is ___
A. $140,000
B. $105,000
C. $95,000
D. $85,000
The basis for depreciation of the house is Option D is $85,000.
The calculation is as follows:= Purchase value of the house - empty lots of area sold
= $95,000 - $10,000
= $85,000
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If a tax is imposed on a good where both supply and demand are somewhat elastic, but demand is more elastic than supply, the burden of the tax will be borne
A. by producers alone.
B. by consumers and producers equally.
C. by consumers alone.
D. mostly by producers but partially by consumers.
E. mostly by consumers but partially by producers.
Answer:
The answer is D - mostly by producers but partially by consumers.
Explanation:
Tax incidence depends on the relative price elasticity of demand and supply. When supply is more elastic than demand, buyers bear most of the tax burden but when demand is more elastic than supply, producers bear most of the cost of tax and consumers bear less.
If the accountant forgets to adjust the Prepaid Expenses account, there will be_____________.
Answer:
There will be an overstatement in income and an overstatement in current assets
Explanation:
In case an accountant forgets to adjust the prepaid expenses account for the period, the recognized expenses is understated because to adjust prepaid expenses we have to debit expenses (which will lead to an increase in recognized expenses) and credit prepaid expense account (a deduction to current asset). Failure to do so, income recognized for the period is overstated and prepaid expenses account is overstated as well.
LeMay Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from LeMay Frosted Flakes boxes and $1.
The company estimates that 60% of the boxtops will be redeemed. In 2012, the company sold 500,000 boxes of Frosted Flakes and customers redeemed 220,000 boxtops receiving 55,000 bowls.
If the bowls cost LeMay Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?
a. $150,000
b. $40,000
c. $60,000
d. $84,000
Answer:
The correct anwer is C. 60.000
Explanation:
First, you have to calculate tthe total expected bowls that LeMay has to buy. In this case is 500.000 * 60% / 4 = 75.000. Then, subtract the expected bowls against the already delivered. In this case 75.000 * 55.000 = 20.000. Finally, multiply by the cost per bowl, to get the outstanding premiums to record: 20.000 * 3 = 60.000
A corporation has a NLTG of $40,000 and a NSTL of $10,000 in the current year. It had capital gains/(losses) as follows
YEAR 3 $20,000
YEAR 2 (35,000)
YEAR 1 10,000
HOW MUCH MUST THE CORPORATION ADD TO ITS OTHER INCOME DUE TO CAPITAL GAINS TO DETERMINE TAXABLE INCOME IN THE CURRENT YEAR
A. 5000
B. 25000
C. 30000
D. 35,000
Answer:
C. 30000
Explanation:
net capital gain
= net long term capital gain in current year - net short term loss in current year
= $40,000 - $10,000
= $30,000
Therefore, THE CORPORATION ADD $30,000 TO ITS OTHER INCOME DUE TO CAPITAL GAINS TO DETERMINE TAXABLE INCOME IN THE CURRENT YEAR.
How do organizations calculate various costs, and what do these calculations mean to business?
Answer:
See the explanation section
Explanation:
Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.
Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.
You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1400 from rent. You then expect to sell the house for $336,000 at the end of 53 months. If your discount rate on this investment is 9% (compounded monthly), how much is this property worth to you today? Assume that you receive rent at the beginning of each month and you receive the first rent the same day you purchase the property. Round to the nearest cent.
Answer:
$287,625.12
Explanation:
The market price of this property should be equal to the present value of all rental income plus the sales proceed from sales of the asset.
1. Present value of rental cashflow = 1,400 + 1,400/[1 + (9%/12)] + ... + 1,400/[1 + (9%/12)]^52 = 61,498.67
2. Present value of proceed from sales of the asset = 336,000/[1 + (9%/12)]^53 = 226,126.45
So, market price of this property should be equal to 61,498.67 + 226,126.45 = $287,625.12
Which of the following is NOT an example of a conflict of interest? Group of answer choices
a. Advising two clients at the same time who are competing to acquire the same company when the advice might be relevant to the parties' competitive positions
b. Accepting commissions in a financial planning engagement for a nonaudit client
c. Advising a client to invest in a business in which, for example, the immediate family member of the CPA has a financial interest in the business
d. Providing tax or personal financial planning services for several members of a family whom the CPA knows to have opposing interests
Answer:
Only b. Accepting commissions in a financial planning engagement for a nonaudit client.
Explanation:
This option is correct only if there is no evidence that this nonaudit client has CPA members interest. The other 3 options show evident connections with current clients or CPA members, which make a potential conflict of interest high probable. To avoid situations stated in options a, c and d is always the best things to do
Final answer:
Accepting commissions in a financial planning engagement for a non-audit client is not automatically a conflict of interest and is the correct answer to the question, which seeks to identify the option that is NOT an example of a conflict. ( Option B)
Explanation:
The concept of a conflict of interest arises when an individual or entity has multiple interests and serving one interest could involve working against another, typically in situations of professional or financial gain. Among the provided options, the one that is NOT an example of a conflict of interest is b. Accepting commissions in a financial planning engagement for a non-audit client. This situation does not automatically imply a conflict; it becomes a conflict only if the commissions could influence professional judgement or create bias.
In contrast, a, c, and d are direct examples of conflicts of interest since they involve situations where personal or overlapping professional interests could potentially compromise impartiality or create bias in judgment.
A company reported total assets at the end of 2017 of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of 2018 of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash in 2018.
Answer:
The net increase of cash in 2018 is of $9,000
Explanation:
We can lay out the information as follows:
2017
Cash $35,000
Accounts Receivable $20,000
Inventory $40,000
Total Assets $95,000
2018
Cash $44,000
Accounts Receivable $29,000
Inventory $37,000
Total Assets $100,000
Net cash = Cash in 2018 - Cash in 2017
= $44,000 - $35,000
= $9,000
Courtnie has been allergic to cats as long as she can remember; this requires her doctor to give her an allergy shot. On her 26th birthday she spends the day in a house with cats and has no reaction. Therefore the allergy shot has helped Courtnie overcome her reaction to cats. The explanation for why she had no reaction describes which of the following?
Answer:
The correct answer is: causal relation.
Explanation:
Causal relation describes the correlation between two events. It explains that the second event occurs as a result of the first one, though, sometimes the second event might not be the cause of the first one. The first event takes the name of the cause and the second event is called the effect.