An ethical _________ represents employee's perceptions about the extent to which work environments support ethical behavior.

Boxer Corporation buys equipment in January of the current year with a seven-year class life for $15,000. The corporation expens

djyliett [7]

The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is: $3,000.

Explanation:

E&P refers to accumulated earnings and profits in accounting term. The term was commonly related with the stockholders of corporations. Accumulated earnings and profits are generally calculated by obtaining the net profit of the company after paying dividends to the stockholders.

The economic ability of the corporation can be measured through E&P. In the above scenario, the Boxer Corporation purchases equipment for $15000 with seven-year of class life. This purchase comes under the Sec.179. The deduction in the year of purchase for E&P purposes will be $3000 for Boxer Corporation.

7 0

3 years ago

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had

harkovskaia [24]

The journal entry, to record the sale of the treasury shares on February 1, would include:

a) debit to a loss account for $112,500

b) credit to Treasury Stock for $90,000

c) credit to a gains account for $112,500

d) debit to Treasury Stock for $90,000

Answer:

Option D Debit to Treasury Stock for $90,000

Explanation:

The journal entry of repurchase of treasury stock is as under:

Dr Treasury Stock $90,000

Cr Cash $90,000

As the treasury stock has been purchased for cash, the cash has been decreased and the decrease in treasury stock is credit in nature. Hence the decrease in stock is shown as debit and decrease in cash is shown as credit.

The rate as which the stock is purchased is the price at which treasury stock will be debited = Treasury shares purchased × Fair Value per Share

= 3,750 shares × $24

= $90,000

5 0

3 years ago

Prepare adjusting entries for the following transactions.

kramer

Answer:

that is the correct amout because that is what it adds up to

3 0

3 years ago

The manufacturing cost of Calico Industries for three months of the year are provided below:

Delvig [45]

Answer:

b. $0.40 per unit and $8,000

Explanation:

High low method separates the fixed cost and variable cost using net of Highest activity level and Lowest activity level and net of their relevant costs.

According to High low method

Variable cost per unit = ( Highest activity cost - Lowest activity cost ) / ( Highest Activity - Lowest activity )

Variable cost per unit = ( $120,000 - $74,000 ) / ( 280,000 - 165,000 )

Variable cost per unit = $46,000 / 115,000

Variable cost per unit = $0.4

Fixed operating cost = Total cost - Total Variable cost = $120,000 - ( 280,000 x $0.4 ) = $8,000

4 0

4 years ago

1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported

Serggg [28]

Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost = 20% of $500

= $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

= 109,500 motorcycles

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}$

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}$

$=\sqrt{\frac{219,000,000}{100} }$

$\sqrt{2,190,000}$

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

5 0

3 years ago