The above answer can be explained as under -
The journal entry to record estimated warranty expense is -
Warranty Expense Dr. ............. $ 17,800
Estimated Warranty Liability .......... Cr. $ 17,800.
The estimated warranty liability is calculated on the basis of the credit sales of the year and percentage estimated. Here, the credit sales of the year is $ 356,000 and the estimated percentage is 5 % of credit sales. Thus, estimated warranty liability is = $ 356,000
Answer:
A
Explanation:
A tax is a complusory sum levied byb the government or an agency of the government on goods and services.
Taxes increases the price of goods and services
Types of taxes
1. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
A progressive tax ensures vertical equity.
The British system of taxation is an example of a progressive tax. This is because the more windows your house has, the wealthier the individual is. Individual with more windows, would pay a higher tax rate
2. Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
A graduated income tax is also known as progressive tax
3. A proportionate tax taxes everyone the same regardless of the amount earned.
4. A sales tax is an example of consumption tax. It is levied on the sales of goods and services
Answer:
$6.48
Explanation:
div 1 = $0.27
div 2 = $0.32
div 3 = $0.47
div 4 = $0.77
div 5 = $0.77 + 2.3%
required rate of return = 12%
first we must determine the stock price in 4 years = ($0.77 + 1.023) / (12% - 2.3%) = $8.12
now we must determine the stock price including all dividends up to year 4:
stock price = $0.27/1.12 + $0.32/1.12² + $0.47/1.12³ + $0.77/1.12⁴ + $8.12/1.12⁴ = $0.24 + $0.26 + $0.33 + $0.49 + $5.16 = $6.48
Answer:
$42,500
Explanation:
Red carpet had retained earnings of $537,500 and a net income of $135,000
On the previous balance sheet the retained earnings that was reported was $445,000
The first step is to calculate the change in retained earnings
= $537,500-$445,000
= $92,500
Therefore the amount of dividend paid by the firm can be calculated as follows
=Net income-change in retained earnings
= $135,000-$92,500
= $42,500
Hence the dividend paid by the firm during 2019 is $42,500