Answer:
1. Jim Marley is the sole owner of Marley's Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence This liability was not recorded in the records of Marley's Appliances
- ECONOMIC ENTITY PRINCIPLE: the activities of a business must be kept separate form the activities of its owners
2. Apple Inc. distributes an annual report to its shareholders
- TIME PERIOD PRINCIPLE: companies must report their financial statements over standard or fixed periods of time, e.g. monthly, quarterly or annually
3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives
- EXPENSE RECOGNITION: expenses must be recorded during the time periods that they actually occur
4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value
- HISTORICAL COST PRINCIPLE: assets must be recorded at purchase cost and the only adjustment can be accumulated depreciation
5. delivered to customers, even though the cash has not yet been
- THIS PART IS INCOMPLETE, BUT I BELIEVE IT REFERS TO THE REVENUE RECOGNITION PRINCIPLE: revenue must be recognized once the earning process has been completed and not necessarily when the cash is received.
6. Liquidation values are not normally reported in financial statements of $200,000 Honeywell International Inc. records revenue when products are received even though many companies do go out of business
- GOING CONCERN PRINCIPLE: this principle assumes that the business will continue to operate in the foreseeable future
7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense
- MATERIALITY: a company must record all the transactions that may affect the decision making processes. In this case, a tool will not make any difference on a multibillion dollar company.
Answer:
Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%
Explanation:
Hi, the formula to find the after-tax rate of return of any taxable income is as follows.
Therefore, in the case of the municipal bond.
So, the after-tax rate of return of the municipal bond is 3%.
And for the corporate bond is.
And the after-tax rate of return of the corporate bond is 4.5%.
It means that taxes on municipal bonds are:
In the case of municipal taxes:
1% taxes for municipal bonds
In the case of corporate taxes:
1.5% taxes for corporate bonds
Best of luck.
Answer:
a. $826,000.
Explanation:
The computation of the total manufacturing overhead is given below;
= (Indirect materials + indirect labor + factory supplies) ÷ expected machine hours × budgeted + (Depreciation + taxes + supervision)
= ($280,000 + $400,000 + $40,000) ÷ 200,000 × 160,000 + ($120,000 + $30,000 + $100,000)
= $826,000
Hence, the correct option is a.
Answer: 6%
Explanation:
Based on the information given, when the flotation costs is ignored, the company's cost of preferred stock will be calculated thus:
Cost of preferred stock = Dividend on preferred stock / Price of preferred stock
Cost of preferred stock = 4.5/75 = 0.06 = 6%
Therefore, the cost of preferred stock is 6%.
It is not encouraged to rely on estimates of the intercept when a person is making analysis because intercept is the mean of variable Y when all predictors have become zero.
<h3>What is economic analysis?</h3>
This is the term that is used to refer to the analysis that is done with the given data that has been established in a statistical test. The economic analysis helps to make the predictions that would be used to bring about new policies in government.
Economic analysis is not done with the the intercept because it would require all the other predictor variables to have zero value hence their impact cannot be seen.
Read more on economic analysis here: brainly.com/question/14300080
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