Answer: Long-term investments
Wilson Steel paid $34,000 for a 3.2% stake in Barnes Metal.
Wilson Steel has invested in Barnes with the intention of selling this stock after two years. It has no other business interest in it. <u>Hence, we can consider this as a long-term investment.
</u>
Long-term investments are a part of the assets of a company. Hence, in the balance sheet, long-term assets will show an increase of $34,000.
Answer: A. deductible
Explanation: It can not be premium, as that is what you pay monthly for insurance. Credit limit is the maximum amount of money your allowed to spend monthly on a credit card. A copayment is what is spent out of pocket on a service that is typically covered by insurance. Deductible is what you must pay before receiving insurance coverage.
Answer:
The advertising spend would reduce income taxes by $2.8 million
Explanation:
The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by $2.8 million ($8 million *35%)
This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million
Answer:
Dr cash $310,831
Dr discount on bonds payable $29,169
Cr bonds payable $340,000
On 30th June 2021
Dr interest expense $ 15,542
Cr cash $15,300
Cr discount on bonds payable $242
On 31st December 2021
Dr interest expense $ 15,554
Cr cash $15,300
Cr discount on bonds payable $254
Explanation:
The bond issued at a discount is the first bond whose cash proceeds of $310,831 were less than face value of $340,000.
Discount=face value -cash proceeds=$340,000-$310,831=$29,169.00
Find attached bond amortization schedule.
Answer:
$84
Explanation:
The computation of each unit of the company's inventory under absorption costing is shown below:
= Direct material used + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $12 + $18 + $25 + $29
= $84
We simply added the first four-unit cost through which total unit cost would come
All other information which is given is not relevant. Hence, ignored it
