Answer:
Matrix organization
Explanation:
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Answer: delivery trucks
Explanation: I took the test
Answer and Explanation:
The Journal entries are shown below:-
Interest expense Dr, $316,800
Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)
To Interest payable $336,000 ($4,800,000 × 7%)
(Being interest expense and bond premium amortization is recorded)
Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities
Answer:
$210,000
Explanation:
In this question, we are asked to calculate the amount to which the value of the firm
Will increase to.
Basically what we need to know here is the proposition and how it will affect the value of the firm.
According to MM proposition II , the value of the firm will increase by the debt tax shield when an all equity financed firm is restructured to include debt in the capital structure. This is called Adjusted present value.
Mathematically, this value can be calculated using the formula as follows; (Debt * Interest rate * Tax rate)/ Interest rate
We identify the interest rate as 7% and the tax rate as 21%
=( 1 M * 7% * 21%) /7% = $ 210,000
Answer:
(a) $9,000 per employee
(b) $252,000; $198,000
Explanation:
Given that,
Fringe benefits cost during 2018 = $450,000
Employees assigned to division A = 28
Employees assigned to division B = 22
(a) Allocation rate:
= Total cost to be allocated ÷ Cost driver
= $450,000 ÷ 50
= $9,000 per employee
(b) Cost assigned to A:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 28
= $252,000
Cost assigned to B:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 22
= $198,000
