Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
Answer:
1.
Dec 31 Rent expense $3450 Dr
Prepaid Rent $3450 Cr
2.
Oct 1 Prepaid Rent $13800 Dr
Cash $13800 Cr
3.
Year end balances at 31 December:
Rent Expense = $3450
Prepaid Rent = $10350
Explanation:
Assumption: The year end for the business in on 31 December.
1.
The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.
2.
The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.
3.
The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450
The balance in the prepaid rent account after adjusting the rent expense will be,
Prepaid rent = 13800 - 3450 = $10350
Answer and Explanation:
The computation is shown below:
Total material variance = Actual quantity × Actual rate - Standard quantity × Standard rate
= 29000 × $6.3 - (16,000 units × 2) × $6
= $182,700 - $192,000
= - $9,300 favorable
Material price variance = Actual quantity × Actual price - Actual quantity × Standard price
= (29,000 units × $6.3) - (29,000 units × $6)
= $182,700 - $174,000
= $8,700 unfavorable
Material quantity variance = Standard quantity × Actual quantity - Standard rate × Standard quantity
= $6 × 29,000 units - $6 × (16,000 units × 2)
= $174,000 - $192,000
= -$18,000 favorable
The favorable is when the standard cost is more than the actual one while the unfavorable is when the standard cost is less than the actual one
Answer:
The answer is: D) Crimson’s dividends received deduction is $21,000
Explanation:
The dividends received deduction (DRD) allows a company that earns dividends from another company, to deduct those earnings (dividends) from its income tax.
The three tiers of possible deductions are:
- If the company owns ≤20% of the second company, it can deduct 70% of the dividends received.
- If the company owns ˃20% but ≤80% of the second company, it can deduct 80% of the dividends received.
- If the company owns ˃80% of the second company, it can deduct 100% of the dividends received.
Since Crimson owned 15% of the second company, then it can deduct 70% of the dividends it received, which equals $21,000 ($30,000 x 70%).
Classification systems have undergone several changes over a period of time to get proper categorization of the organism.
<h3>What is classification?</h3>
Classification can be told as the difference that can be between the plants and the animals which can be a based on various factors like the cell, discoveries, and the species.
Aristotle gave the first classification. He divided plants into three categories, RBC existence or disappearance was used to categorize animals. The recognized species cannot all be categorized using this technique.
Linnaeus created a two-kingdom categorization. Plant and Animalia are their constituent parts. But, there would have been numerous species that fell outside the realms.
Ernest Henkel divided on the basis of cells into a distinct dynasty, and so created a categorization of three kingdoms.
Copeland divided all prokaryotic creatures into a distinct kingdom called Monera, leading to the development of the Four-Kingdom.
R.H. Whittaker developed a five-kingdom method of categorization in 1969.
Learn more about classification systems, here:
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