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allsm [11]
3 years ago
5

True or false: when both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect

on the undetermined equilibrium object.
a. True
b. False
Business
1 answer:
Stella [2.4K]3 years ago
4 0
I believe the correct answer is A or True. If this answer helped you and was correct you can name me "Brainliest." ty :) 
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Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the compa
Jlenok [28]

Answer:

The Answer is explanatory so it is given as under:

Explanation:

<u>Part 1. At the start of the year:</u>

The part of the salary includes $150,000 per year for the next 10 years and this must be recorded as an deferred compensation liability. All we have to do is to calculate the present value of the annual salary payments.

Present Value = Annual Payment * Annuity factor

And for Annuity factor we will use 5% rate of interest.

So

Annuity Factor = (1 - (1-r)^n) / r

Here

r = 5%

n = 10 years

Which means

Annuity Factor = (1 - (1 + 5%)^10)  / 5%   = 7.722

Hence

Present value = $150,000 * 7.722 = $1,158,260

So the journal entry would be as under:

Dr Deferred Compensation expense $1,158,260

Cr    Deferred Compensation Liability $1,158,260

<u>Part 2. At the end of the Year 1:</u>

At the first year end, the annual payment of $1,158,260 will be discounted back by using the following formula:

Discounted Back Amount = Annual Amount * (1- (1+r)^n)

Remember for the first year n is 10, for second n is 9 and so on.

Discounted Back Amount = 150,000 x (1 - 0.614) = $57,913

Dr Deferred Compensation Expense   $57,913

Cr    Deferred Compensation Liability        $57,913

Part 3. And when the first payment of the salary is made, the journal entry would be:

Dr Deferred compensation Liability $ 150,000

Cr                                       Cash Account    $150,000

Likewise we will till the year 10 and will record the part 2 and part 3 until at the end of the year 10, the whole of the deferred tax liability is reduced to zero.

The life insurance policy payments can not be offset against the deferred compensation liability because it will be accounted for as a different transaction and hence must not be treated as Riley desires.

So the Cash surrender value will be treated as an asset and annual increase in this asset would be treated as an income.

5 0
3 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0
3 years ago
Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs a
KiRa [710]

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000  + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

5 0
3 years ago
Tucker's Trucking is considering a project with a discounted payback period just equal to the project's life. The projections in
Vinil7 [7]

Answer:

Break-even quantity= 9520 units

Explanation:

Giving the following information:

The projections include a sales price of $39.

Variable costs per unit of $14.

Fixed costs of $238,000.

The operating cash flow is $24,300.

Break-even quantity= Fixed costs/contribution margin

Break-even quantity= 238000/(39-14)= 9520 units

4 0
2 years ago
Why do many companies find that providing employees a comprehensive benefits package that includes insurance, retirement investm
mash [69]

Answer: Few employers believe that offering employee benefits is a worthwhile or cost-effective strategy for attracting and retaining the best employees

Explanation:

Several companies find that providing theye workers a comprehensive benefits package which consist ofinsurance, retirement investment and other benefits is worth the cost associated because it helps them retain and also attract their best staffs.

When employees are given the required support needed and given work related benefits, this is usually source of motivation to the employees and can help bring out the best in them.

8 0
2 years ago
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