Vehicles begin to arrive at a parking lot at 6:00

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corpo

Gnesinka [82]

Answer: 2016= $13,000; 2017= $25,000

Explanation:

for 2016

Income to be recognised in 2016 for 12 months term= Total proceeds x period of service provided (july -december )/ Total contract term

Income to be recognised in 2016= 14,000 x 6months /12months

= 14,000 x 1/2= $7,000

Income to be recognised in 2016 for 24 months term= Total proceeds x period of service provided (july -december )/ Total contract term

Income to be recognised in 2016= 24,000 x 6months /24months

= 24,000 x 1/4= $6,000

income to be recognized in taxable income in 2016= $7,000 + $6,000= $13,000

for 2017

Income to be recognised in 2017 for 12 months contract term= Total proceeds x remaining period of service provided from jan. to june 2017 / Total contract term

Income to be recognised in 2017= 14,000 x 6months /12months

= 14,000 x 1/2= $7,000

Income to be recognised in 2017 for 24 months contract term= Total proceeds x remaining period of service provided fromjuly 2016 -dec 2017/ Total contract term

Income to be recognised in 2016= 24,000 x (24-6) 18months /24months

= 24,000 x 3/4= $18,000

income to be recognized in taxable income in 2017= $7,000 + $18,000= $25,000

7 0

4 years ago

A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive pr

raketka [301]

Answer:

He would receive $15 under incentive plan.

Explanation:

The given values are:

Average observed time

= 280 seconds per unit

Performance rating

= 105%

i.e.,

= 1.05

Allowance factor

= 13%

i.e.,

= 0.13

So,

⇒ $Standard \ time = \frac{(Average \ observed \ time\times Performance \ rating)}{1-Allowance \ factor}$

On putting the estimated values, we get

$=\frac{(280\times 1.05)}{(1-0.13)}$

$=\frac{294}{0.87}$

$= 337.93 \ seconds$

The available time will be:

= $(8 \ hours\times 60 \ min/hr\times 60 \ sec/min)$

= $28800 \ seconds$

Now,

The Standard production per day will be:

= $\frac{Available \ time}{Standard \ time}$

= $\frac{28800}{337.93}$

= $85.22 \ units$

Since he generates 100 units, he consumes about 15(00-85,22) units per day well above normal production.

So that he's going to get:

= $15\times 1$

= $15$ ($)

8 0

3 years ago

The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50

Lelu [443]

Answer:

Times interest earned (TIE) = 7.4 times

Explanation:

The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,

Times Interest Earned (TIE) = EBIT / Total Interest expense

Where,

EBIT is the earnings of the company before interest and tax

To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:

EBIT = Net income + tax + interest expense

EBIT = 240000 + 80000 + 50000

EBIT = $370000

Times interest earned (TIE) = 370000 / 50000

Times interest earned (TIE) = 7.4 times

6 0

4 years ago

The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, i

Effectus [21]

Answer:

Relevance and faithful representation

Explanation:

The is a general consensus that accounting information must possess certain basic characteristics for it to be useful to the users of financial statement. The International Accounting Standards Board (1ASB) gave voice to this assertion when it prescribes some basic characteristics of accounting information which are 1. Understandability 2. Relevance 3. Reliability 4. Comparability. 5. Materiality. 6. <em>Faithful representation.</em> 7. Substance over Form. 8. Neutrality. 9. Prudence. 8. Timeliness. 9. Completeness.

Faithful representation is the requirement that financial statement must be accurate and must show a true and fair view of the position of the business.

8 0

3 years ago

Nicole and her team of skillful systems analysts have been hired to create a database system for an educational software package

zhuklara [117]

Answer:

True.

Explanation:

The type of database that Nicole's team would recommend is a relational database.

Relational database can be described as the arrangement of formally described tables from which data can be got in many different ways without having to reorganize the tables.

The relational database is critical in that it enhances easy accessibility to information. Also, it streamlines processes and procedures and allow for specific investigation of data and record. Nicole's team is therefore making a good stance and decision by recommending the Relational Database to its client.

8 0

4 years ago