Answer:
Correct option is (c)
Explanation:
Market interest rate and price of the bond are inversely related.if market interest rate falls and is lesser than stated interest rate (coupon rate), then the bond becomes attractive and its price increases. So, bond can be solved at present higher than the maturity value. This is the reason bond is redeemed before maturity.
On the other hand, if market rate increases, bond becomes less attractive as investors can earn more by investing at market interest rate. So price of bond falls and there is no point redeeming it before maturity.
Answer:
Sam must report $700,000 distribution from Silver on his Income report.
Explanation:
The sale of the land is made by the corporation and the corporation is a tax payer therefore any gains and losses are for the company to pay tax on.
The deficits in the E&P are for Silver to take into account when about to pay taxes.
The basis of $200,000 is not income but cost and subtracted on the distribution income as is for Sam.
Answer:
Option D is correct
Under costed by $53.76
Explanation:
Using activity based costing, the job would be costed using the different cost driver rates as provided in the question.
Overheads allocated= (12× 22) + (32×3)= 360
Using traditional costing system, the overhead would be charged using direct labor hours only.
Total overheads = (100,000 × 12) + (6000 × 32) =1,392,000
Predetermined overhead absorption rate
= 1,392,000/100,000 labour hours
=$13.92 per hour
Allocated overheads= OAR × labour hours required
= $13.92 × 22 =306.24
Using traditional costing, the job would be under costed by
= 360 - 306.24
=$53.76
Answer:
Instructions are below.
Explanation:
Giving the following information:
5,200 units remained in the finished goods inventory.
direct materials $35
direct labor $16.80
fixed company overhead $5.60
variable factory overhead $4.90
<u>The difference between the variable costing method and the absorption costing is that the last one includes the fixed overhead as a product cost.</u>
A) Absorption costing:
Unit product cost= 35 + 16.8 + 5.6 + 4.9= $62.3
Ending inventory= 62.3*5,200= $323,960
B) Variable costing:
Unit product cost= 35 + 16.8 + 4.9= $56.7
Ending inventory= 56.7*5,200= $294,840
The last one that says software error