Why does monetary policy usually involve a streamlined inside lag?

You can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it

yan [13]

Answer:

a. Project A

Explanation:

The computation of the expected return is shown below:

For Project A

= (0.6 × $200,000 + 0.4 × $50,000)

= $120,000 + $20,000

= $140,000

For Project B

= (0.7 × $150,000 + 0.3 × $30,000)

= ($105,000 + $9,000)

= $114,000

Since in the Project A, the value doubles means = $100,000 × 2

And, if the succeeding percentage is 0.6 then its failing percentage is 0.4

So as we that the project A has an high expected return than the Project B so the Project A should be invested

4 0

2 years ago

A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise.

elena-14-01-66 [18.8K]

Answer:

$259.35

Explanation:

The computation of the amount of cash paid is shown below:

= (Purchase value of merchandise - returned goods of merchandise - discount charges)

= ($9,100 - $455 - $259.35)

= $8,385.65

The discount charges is

= (Purchase value of merchandise - returned goods of merchandise) × discount rate

= ($9,100 - $455) × 3%

= $259.35

We simply applied the above formula

3 0

3 years ago

(c)

ladessa [460]

Answer:

The changes suggested increase income by 16,000 therefore is a good idea to made the changes

Explanation:

Your Mistake is that fixed expenses should remain constant with a sales increase

Current New

Sales $800,000 $ 912,000

Variable $ 480,000 $ 576,000

Contribution $ 320,000 $ 336,000

Fixed $ 270,000 $ 270,000

Net Income $ 50,000 $ 66,000

7 0

2 years ago

company manufactures pillows. the operating budget was based on production of pillows, with machine-hours allowed per pillow.

MatroZZZ [7]

a. The budgeted variable overhead is $468,750.

b. The variable overhead spending variance is $38,100 Favorable

c. The variable overhead efficiency variance is $30,000 Favorable

<h3>What is variable overhead?</h3>

Variable overhead is a cost of running a business that varies with operational activity. Variable overheads rise and fall in lockstep with production output. Overheads, such as administrative overhead, are often a set cost.

The variable manufacturing overhead controllable variance reflects how effectively the company stuck to its budget. The difference between the planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced is the fixed factory overhead volume variance.

a. The budgeted variable overhead for 2017 = Budgeted hours * Variable overhead rate per hour

= (25000*0.75)*$25 = $468,750

b. Variable overhead spending variance = (SR - AR) * AH = ($25 - $23) * 19050 = $38,100 Favorable

c. Variable overhead efficiency variance = (SH - AH) * SR = (27000*0.75 - 19050) * $25 = $30,000 Favorable

Learn more about budget on:

brainly.com/question/8647699

#SPJ1

4 0

1 year ago

On january 1, 2017, holland corporation paid $9 per share to a group of zeeland corporation shareholders to acquire 60,000 share

Illusion [34]

Answer:

Explanation:

a Consideration transferred by $540,000

Holland ($9.00 x 60,000 shares)

Fair value of the non-controlling 320,000

interest ($6.50 x 40,000 shares)

Total Zeeland fair value at January 1, 2017 $860,000

Zeeland book value at January 1, 2017 320,000

Excess acquisition-date fair over book value $540,000

To equipment (5-year remaining life) $50,000

To patent (10-year remaining life) 420,100 470,100

Goodwill $69,900

Goodwill allocation: Holland NCI

Acquisition-date fair value $540,000 $320,000

Share (60% and 40%) of identifiable * 474,060 316,040

net assets

Goodwill allocation $65,940 $3,960

*Zeeland identifiable net assets at acquisition-date fair value:

Current assets $15,700

Property and equipment ($329,700 + $50,000) 379,700

Patents ($212,100 + $420,100) 632,200

Liabilities (237,500)

Total fair value of net identifiable assets $790,100

b Investment in Zeeland

Initial value $540,000

Change in Zeeland’s RE × 60%

($439,400 – $220,000) × 60% 131,640

Excess amortization ($52,010 × 60% × 2 yrs.) (62,412)

Investment in Zeeland 12/31/18 609,228

HOLLAND CORPORATION AND ZEELAND CORPORATION

Consolidation Worksheet

For Year Ending December 31, 2018

Consolidation Entries Noncontrolling Consolidated

Accounts Holland Zeeland Debit Credit Interest Totals

Sales ($582,600) ($445,500) ($1,028,100)

Cost of 295,400 208,500 $503,900

goods sold

Depreciation 73,000 32,300 E 10000 115,300

expense

Amortization 15,700 19,300 E 42010 77,010

expense

Other operating 58,800 58,400 117,200

expenses

Equity in Zeeland -44,994 0 I 44994 0

earnings

Separate company ($184,694) ($127,000)

net income

Consolidated net income ($214,690)

Noncontrolling interest in CNI (29,996) 29,996

Controlling interest net income ($184,694)

Retained earnings ($821,900) ($342,400) S 342400 ($821,900)

, 1/1/18

Net income -184,694 -127,000 ($184,694)

Dividends declared 50,000 30,000 D 18000 12000 50000

Retained earnings, ($956,594) ($439,400) ($956,594)

12/31

Current assets $126,700 $98,500 $225,200

Investment in 609,228 0 D 18000 S 265,440

Zeeland, Inc

A1 250854

A2 65940

I 44994

Property and 854,000 276,000 A1 40000 E 10000 1,160,000

equipment (net)

Patents 152,400 168,500 A1 378090 E 42010 656,980

Goodwill 0 0 69900 69,900

Total assets $1,742,328 $543,000 $2,112,080

Liabilities -465,734 -3,600 -469,334

Common stock -320,000 -100,000 S 100000 -320000

Noncontrolling S 176960

interest

A1 167236

A2 3960 -348156 -366152

Retained earnings -956,594 -439,400 -956594

, 12/31

Total ($1,742,328) ($543,000) $1,045,394 $1,045,394 ($2,112,080)

liabilities and equities

6 0

2 years ago