Answer:
a. $17,978
b. $300,000
Explanation:
Conditions
- The cotton country of lancaster, california has owned his home for ten years
- purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
- the replacement cost of the home is now $300,000
a. hence,
the proportion of the house insured = 
%
= 89.89%
Percentage amount covered by the policy
= proportion of the house insured = 89.89%
Amount covered by the policy in dollars
= $20,000 × 89.89%
= $17,978
b
Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss = current value of the home
= $ 300,000
Answer:
The answer is letter d. The primary key is the unique identifier throughout a database table. It could be a social security number, license number, or telephone number. This makes a person to be easily identified especially when there's a lot of people with the same name in the database.
Answer:
Cash proceeds is $201,250.00
Explanation:
The cash proceeds derived from issuing the bonds can be computed as follows:
cash proceeds=87.5%*$230,000=$201,250.00
Total interest expense on the bond is $212,519 as contained in the attached bond amortization schedule
The first payment=$201,250*10%*6/12=$10,063 as it also found in the attached
Answer:
1. Journalize the transactions for Rose's investment in Sprouts' stock:
<u>March 1 2018</u>
Dr Trading securities - Sprouts's stock 12,000
Cr Cash 12,000
(to record the purchase of Sprout's stock)
<u>October 1 2018</u>
Dr Cash 350
Cr Dividend Income 350
(to record the dividend receipt from Sprout's stock)
<u>October 31 2018</u>
Dr Cash 12,250
Cr Gain on disposal of short-term investment 250
Cr Trading securities - Sprouts's stock 12,000
(to record disposal of Sprout's stock)
2. Net effect of the investment on Rose's net income for the year ended December 31, 2018: $600.
Explanation:
1. As this investment is short-term investment and is held for sell, fair value methodology should be applied to record this transaction. The detailed journal entries are as in answer part.
2. As fair value methodology is applied, the net income of Rose will include: dividend income + gain on disposal of short-term investment = $350 + $250 = $600.
Answer:
Results are below.
Explanation:
<u>First, we will determine the net income for tax purposes:</u>
Sales= 800,000
Expenses other than depreciation= (350,000)
Gross profit= 450,000
Depreciation= (200,000)
EBT= 250,000
Tax= (250,000*0.34)= (85,000)
Depreciation= 200,000
Net income= 365,000
<u>Now, for reporting purposes:</u>
Gross profit= 450,000
Depreciation= (130,000)
EBT= 320,000
Tax= (320,000*0.34)= (108,800)
Depreciation= 130,000
Net income= 341,200
