Answer and Explanation:
The explanations are as follows:
a) If the goods held on consignment for someone else so the same would not be involved as it would be included in S Corp inventory
(b) It Should be included.
(c) It Should be included.
(d) It Should not be included.
(e) It Should not be included. It would be included in supplier inventory
(f) It Should be included.
(g) It should be included in the office supplies only
Answer: $7,500
Explanation:
In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.
Starting off we will calculate the amount of savings they will make by using the new machine,
= $12,000 x 5 years
= $60,000
Calculating the Incremental income therefore we have,
= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)
= $7,500
The incremental income of buying the new machine is $7,500.
If you need any clarification do comment.
Answer:
c) a credit to Work-in-Process Inventory for $432,000.
Explanation:
Based on the information given Harrington should make a journal entry on December 31 that includes: A credit to Work-in-Process Inventory for the amount of $432,000 Calculated as :
Opening WIP $68,000
Add Costs incurred throughout $450,000
Less ending WIP ($86,000)
$432,000
Dr Inventory $432,000
Cr Work-in-Process $432,000
Answer:
The general level of stock prices
The effect of the tax rate on the cost of debt in the weighted average cost of capital equation
The project should be accepted.
Division L’s project should be accepted, since its return is greater than the risk-based cost of capital for the division.
Explanation:
The company can determinate their payout ratio and the cost of capital of their equity the rest of the option are determined by either the market or the government.
It should be accepted as the return is based on the division which WACC is 8% therefore, it will make a good use of the capital as is above the expected capital cost
The real rate of return is 3.15%.
What is real rate of return?
The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.
1+real rate = (1+rate of return) / (1+inflation)
1 + real rate = (1+0.0645) / (1+0.032)
1 + Real Rate = 1.0315
Real Rate = 0.0315 = 3.15%
To learn more about real rate of return
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