Answer:
a. Mortgage fraud
b. Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Explanation:
a.
Fraud in basic terms means a deliberate omission or misrepresentation of facts for the purpose of deceives others. Mortgage fraud there for means a deliberate misrepresentation or omission of facts by a lender to a borrower with malicious financial intent to the borrowers. Any form of mortgage fraud is a criminal offense that is punishable in a court of law, since it usually involves huge amounts of money. An example is the mortgage scam that occurred in Sacramento, Calif where seven people were convicted in a $10 million mortgage scam in early 2019. Most people who fall victim to mortgage scams are not financially literate and there for they easily agree to the loan agreement without necessarily reading and understanding the loan agreement.
Financial literacy can be defined as a proficiency in financial principles like; financial planning, debt management and financial investments with the aim of being financially stable. Financial illiteracy can be defined as lacking financial principles and skills to make sound financial decisions.
In our case, Maria being financially illiterate fell victim to mortgage fraud since she signed a loan agreement that she did not quite understand. The lenders also committed a fraud since they knew that Maria did not understand the agreement but they did not educate her properly to ensure that she knew exactly what she was signing up for. This was a clear act of misrepresentation with the aim of fraud.
b.
Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Answer:
Cash Disbursement for selling and administrative expense = $42,370
Explanation:
Provided information,
Units to be sold in the month of March = 3,100 units
Variable selling and administrative cost per unit = $3.60
Fixed selling and administrative cost = $35,810
Depreciation included in fixed selling and administrative cost = $4,600
Cash fixed cost of selling and administrative cost = $35,810 - $4,600 = $31,210
Total cash cost of selling and administrative cost = Variable + Cash Fixed cost
Total variable cost = $3.60 
3,100 units = $11,160
<u>Total cash disbursement = $11,160 + $31,210 = $42,370</u>
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Answer:
$3,500 Unfavorable
Explanation:
The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-
Variable overhead efficiency variance
= (Standard labor hours - actual labor hours) × (Standard variable overhead rate)
= (3,500 × 2 - 7,500) × $7
= (7,000 - 7,500) × $7
= $3,500 Unfavorable
Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.
Answer:
$19,708,745
Explanation:
We first have to calculate the present value of the bonds:
Nper = 20 (10 years x 2 payments per year)
R = 11% / 2 = 5.5%
Payment = 83 / 2 = 41.50
Future value = 1,000
PV = ?
To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67
Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.
To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding
= $838.67 x 23,500 = $19,708,745
