Answer:
d) a bond issued by the U.S. government
Explanation:
A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.
Answer:
I think C is correct answer
Answer:
The answer is given below;
Explanation:
Preference stocks 950*50 Dr.$47,500
Paid in capital in excess of par-preference shares Dr.$ 13,300
(64-50)*950
Common Stocks 1,900*10 Cr.$19,000
Paid in capital in excess of par-common stocks Cr.$41,800
(64*950)-(1900*10)
Answer:
<em>b. $ 90,000.</em>
Explanation:
Net realizable value(Market value) for apparel=Selling price minus associated selling expenses e.g sales commission.
Market value for Apparel= $ 120,000-(120,000*10%)
=$ 120,000-12,00
Market value for Apparel =$108,000
Apparel cost=$90,000
The lower of the above costs is $90,000.
Lower of cost or market is one of approaches of valuing and reporting inventory. Ending inventory is usually stated at historical cost. When original cost of the ending inventory is greater than the net realizable value, meaning that the inventory has lost value. The inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The method for reporting this is called current market value.
Answer:
It is more convenient to produce the sails in house.
Explanation:
Giving the following information:
Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.
Because there will not be an increase in fixed costs, we will not have them into account.
Variable overhead= 90 - (78,000/1,200)= 25
Unitary variable cost= 100 + 80 + 25= 205
It is more convenient to produce the sails in house.
