Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
Answer:
See Explanation
Explanation:
(a)
Journal entry to record the transaction is,
Particulars Debit Credit
Land and Building (460000 + 520000) $980,000
Cash Paid $360,000
Mortgage Payable (980,000 - 360,000) $620,000
We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.
(b)
First installment = Principal + Interest payable
= 31,000 + (620,000 * 0.04) = $55,800
(c)
Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560
Since the chart of accounts is not provided you can confirm the the account headings.
Hope that helps.
Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
It is called Affective commitment
Affective commitment is aimed to create positive emotional attachment from the employees toward the company.
Providing the access will make the low-level employees in the company feel much more comfortable in adressing their concern towards the high-level employees
<span>Why is organizational culture so difficult to change? Because it is difficult to change a group's shared values, attitudes, and beliefs. Organizational culture is defined as the values and behaviors that make an organization a unique environment. It is hard to change the way an organization works because you can't just change values and beliefs that someone beliefs in. </span>
