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laiz [17]
3 years ago
12

On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial and income tax reporting purp

oses. The change resulted in a $900,000 increase in the January 1, 2018 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2018 ________.
a. retained earnings statement, as a $630,000 addition to the beginning balance
b. income statement, as a $630,000 cumulative effect of accounting change
c. retained earnings statement, as a $900,000 addition to the beginning balance
d. income statement, as a $900,000 cumulative effect of accounting change
Business
1 answer:
fiasKO [112]3 years ago
4 0

Answer:

a. retained earnings statement, as a $630,000 addition to the beginning balance

Explanation:

Data provided in the question

Change in increase in inventory = $900,000

Income tax rate = 30%

By considering the above information, the cumulative effect is

= Change in increase in inventory - Change in increase in inventory × income tax rate

= $900,000 - $900,000 × 30%

= $900,000 - $270,000

= $630,000

This $630,000 is a addition to the beginning balance

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with semen and a fertilized egg

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3 years ago
Madelyn’s parents paid for her first two years of college, but her dad lost his job, and now they can’t pay for her final year.
valentinak56 [21]

Answer:

Student loan.

Explanation:

Student loans are given to assist students pay for university education. Loans can cover turion, living expenses, and books.

Interest rate charged is very low and repayment can be deferred till after the student graduates.

The most common type of student loan are federal loans(offered by the federal government). They have a lower interest rate than student loans offered by private institutions like banks, schools and credit unions.

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2 years ago
Read 2 more answers
Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of
IRINA_888 [86]

Answer:

$0.15 hours per unit

Explanation:

Given that

Direct material cost = $16

Assume Direct labor cost = X

Manufacturing overheads = $18

Profit margin = 20%

Direct labor per hour cost = $28

The computation of direct labor-hour input is shown below:-

Total manufacturing cost = X + $34

Total cost of goods sold = (X + $34) × 1.7 = $66

Direct labor cost per unit

= (X + $34) = $38.82

= $38.82 - $34

= $4.32

Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost

= $4.32 ÷ $28

= $0.15 hours per unit

3 0
3 years ago
firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each
Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

                                              Common               Bonds

                                                  Stock

Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

Total market value             $4,000,000   $2,400,000

Total value of debt and equity = $6,400,000

Weight                                      62.5%                37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
2 years ago
Organizations use ______ in conjunction with work breakdown structures to help management teams identify and eventually analyze
olga_2 [115]

Answer:

Risk Breakdown Structure

Explanation:

According to my research on the different techniques or structures used within organizations, I can say that based on the information provided within the question the term being used is called Risk Breakdown Structure. This structure is a pyramid structure which organizes different project risks and arranges them by category.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
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