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weqwewe [10]
3 years ago
9

Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 1

00 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. a) Which of the following is not a feasible purchase combination? A) 0 big shelves and 200 medium shelves B) 0 big shelves and 0 medium shelves C) 150 big shelves and 0 medium shelves D) 100 big shelves and 100 medium shelves
Business
1 answer:
Ghella [55]3 years ago
5 0

Answer:

The answer is D

Explanation:

Solution:

Recall that:

Malloy Furniture purchases two products: Big shelves B and Medium shelves M

The cost of big shelf is =$500

The space required = 100 cubic feet

The cost of each medium shelf is =$300

Storage space = 90 cubic feet,

Now,

Since the values 100 and  90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves

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Cinci Co. leased equipment for its entire 10-year useful life, agreeing to pay $50,000 at the start of the lease term on Decembe
Sedaia [141]

Answer:

The amount that Allen should report as capital lease liability in its December 31, Year 2, balance sheet is $266,746.

Explanation:

From the question, it can be seen that 10% is used by the lessee. The reason is that the 10% is what is known by the lessee and it is also lower than 12%. Therefore, we have:

Balance of the lease liability after the first payment = Present value on December 31 of Year 1 - Amount of the first payment = $337,951 - $50,000 = $287,951

It should noted that there is no interest in the amount of the first payment as it was an immediate payment.

Interest expense in Year 2 = 10% * Balance of the lease liability after the first payment = 10% * 287,951 = $28,795

Lease liability paid in Year 2 = Cash paid - Interest expense in Year 2 = $50,000 - $28,795 = $21,205

The journal entries at December 31, Year 2 will then be as follows:

<u>Accounts Title                                 Debit ($)               Credit ($)     </u>

Lease liability                                    21,205

Interest expense                              28,795

Cash                                                                                  50,000

<em><u>(To record lease payment.)                                                               </u></em>

Therefore, we have:

Capital lease liability on December 31 of Year 2 = Balance of the lease liability after the first payment - Lease liability paid in Year 2 = $287,951 - $21,205 = $266,746

Therefore, the amount that Allen should report as capital lease liability in its December 31, Year 2, balance sheet is $266,746.

3 0
3 years ago
Disposal of Plant Asset
antiseptic1488 [7]

Answer and Explanation:

The Journal entry is shown below:-

a. Depreciation expense - Airplane Dr, $75,000

         To Accumulated depreciation - Airplane  $75,000

(Being depreciation expense for 8 months is recorded)

b. Cash Dr, $250,000

Accumulated depreciation - Airplane Dr, $750,000

       To Airplane $1,000,000

(Being the sale of airplane is recorded)

c. Cash Dr, $300,000

Accumulated depreciation - Airplane $750,000  

      To Airplane $1,000,000

       To Gain on sale of airplane $50,000

(Being the sale of airplane is recorded)

d. Cash Dr, $220000

Loss on sale of airplane Dr, $30,000

Accumulated depreciation - Airplane Dr, $750,000

         To Airplane $1,000,000

(Being the sale of airplane is recorded)  

e. Insurance settlement Dr, $210,000

Loss of insurance settlement Dr, $40,000

Accumulated depreciation - Airplane $750,000

         To Airplane $1,000,000

(Being insurance claim on airplane destroyed by fire is recorded)

Working Note:-

Under Straight-line method:

Depreciation per annum = (Cost of asset - Salvage value) ÷ Useful life

= ($1,000,000 - $100,000) ÷ 8 years

= $112,500

So, the Ben company will depreciate the airplane for 8 years by $112,500 every year.

Accumulated depreciation for six years = $112,500 × 6 years

= $675,000

a.  Depreciation expense for 8 months = $112,500 × (8 ÷ 12)

= $75,000

b.  Accumulated depreciation up to the date of disposal = Accumulated depreciation + Depreciation expense

= $675,000 + $75,000

= $750,000

Hence,

The Book value at the date of disposal = $1,000,000 - $750,000

= $250,000

c.  Gain on sale of airplane = (Accumulated depreciation + Cash) - Cost of asset

= ($750,000 + $300,000) - $1,000,000

= $50,000

d.  Loss on sale of airplane = Cost of asset - (Accumulated depreciation + Cash)

= $1,000,000 - ($750,000 + $220,000)

= $30,000

e.  Loss of insurance settlement = Cost of asset - (Accumulated depreciation + Insurance settlement)

= $1,000,000 - ($750,000 + $210,000)

= $40,000

5 0
4 years ago
Pluto Company owns 80 percent of the common stock of Star Corporation. During the year, Pluto reported sales of $1,000,000, and
yuradex [85]

Answer:

$1,420,000 is the correct answer.

Explanation:

4 0
3 years ago
(CO I) Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. Six month Canadian securities have an annualized r
Natali5045456 [20]

Answer:

U.S. dollar-Canadian dollar exchange rate is $1.5961

Explanation:

given data

1 U.S. dollar = 1.60 Canadian dollars

annualized return = 6%

annualized return = 6.5%

time = 180 day

to find out

what is the U.S. dollar-Canadian dollar exchange rate

solution

we know that 1 U.S. dollar equal to 1.60 Canadian dollars

and

exchange rate for 180 days is

exchange rate = Canadian dollar ×( 1 + canadian interest rate )  / ( 1+ US interest rate)   .....................1

put here all these value

exchange rate = Canadian dollar ×( 1 + canadian interest rate )  / ( 1+ US interest rate)

exchange rate = 1.60 ×( 1 + 0.03 )  / ( 1+ 0.0325)

exchange rate = 1.5961

U.S. dollar-Canadian dollar exchange rate is $1.5961

6 0
3 years ago
Joe must pay liabilities of 2000 due one year from now and another 1000 due two years from now. He exactly matches his liabiliti
sweet [91]

Answer:

The value of X+Y=2,769

Explanation:

According to the given data we have the following:

x=present value of 2,000

=2,000/(1+0.06)=1,886.79

y=present value of 1,000

=1,000(1+0.07)∧2=873.44

x+y=1,886.79+873.44

=2,760.23

=2,769

The value of X+Y=2,769

3 0
3 years ago
Read 2 more answers
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