Answer:
C) I, II, and III only.
- I. May demand payment of the full amount immediately from the sureties when the corporation defaults on the loan.
- II. May demand payment of the full amount immediately from the sureties even if Reuter does not attempt to recover any amount from the collateral.
- III. May attempt to recover up to $200,000 from the collateral and the remainder from the sureties, even if the remainder is more than $300,000.
Explanation:
The bank has several options in this case, depending on the financial position and net worth of the sureties and the corporation. It can decide to collect all the debt directly from them, or collect part of the debt through the collateral property, or it can go after the assets of the corporation, or any type of combination. In this case the bank has three options from which it can collect the debt and it is up to them to decide how they proceed.
Answer:
The answer is $215,000
Explanation:
Cost of goods sold equal:
Opening/beginning inventory plus purchases minus closing/ending inventory
To find beginning inventory at January 1, 2018, lets rearrange the formula:
Cost of goods sold minus plus purchases plus closing/ending inventory.
Cost of sales is $470,000
Purchases is $415,000
Ending inventory is $160,000
Therefore, beginning inventory at January 1, 2018 is
$470,000 - $415,000 + $160,000
=$215,000
Answer:
$38,750 Favorable
Explanation:
Fixed overhead absorption rate:
= Fixed Overhead Costs for March (static budget) ÷ Production(static budget)
= $387,500 ÷ 31,000
= 12.5 per unit
Fixed overhead production−volume variance:
= Amount actually applied - Amount budgeted
= (12.5 × 34,100) - $387,500
= $426,250 - $387,500
= $38,750 Favorable
Answer:
The depreciation expense for the first two years is $72,000.
Explanation:
Under straight-line method, depreciation expense is (Cost - Residual value) / No of years = ($400,000 - $40,000) / 10 years = $36,000 yearly depreciation expense.
Using this method, the depreciation expense for the first two years is $36,000 x 2 years = $72,000. This amount is regarded as the accumulated depreciation at the end of Year 2 while the net book value would be $400,000 - $72,000 = $328,000.
Answer:
equity = $19500
Explanation:
Given data:
current assets $3900
net fixed assets $26,500
current liabilities $3400
debt = $7500
Total liabilities = current liabilities + long term debt
= 3400 + 7500 = $ 10,900
Total assets = current assets + net fixed assets
= 3900 + 26,500 = $30,400
We know
total assets = total liabilities + equity
30400 = 10900+ equity
equity = $19500
