<u>Solution and Explanation:</u>
<u>The following is the incremental analysis for the make - or the buy decision to be made by the Parks corporation based on the data given in the question</u>
Incremental cost to buy -54000 = 3000 multiply with 18
Incremental savings on direct materials 9000 =3000 multiply with 3
Incremental savings on direct labor 21000 =3000 multiply with7
Incremental savings on variable overhead 12000 =3000 multiply with4
Incremental savings on fixed overhead 6000 =3000 multiply with2
Incremental net cost to buy -6000
Answer:
The answer is "Option A"
Explanation:
In this Act, the U.S. Congress in 2002 to financing offers against the risk of corporate accounting fraud. To enhance account statements on firms as well as reduce financial crimes, its Sarbanes Oxley Act (SOX) authorized information pertinent.
- The SOX has been introduced in the early 2000s throughout responding to its accounting irregularities.
- The Shareholder commitment within financial reports has been shattered by controversies in everything from Enron, Tyco, and WorldCom and a rewrite in regulatory requirements.
Answer:
$11,560
$5666.661
Explanation:
Given the following :
Bill received from accountant = $17,000
This year's marginal tax rate = 32%
Next year's marginal tax rate = 37%
After tax return on investment = 11%
After tax cost of bill is paid in December :
Billed amount * this year's tax rate
$17,000 * ( 1 - 0.32)
= $17,000 * 0.68
= $11,560
B) After tax cost of bill was paid in January:
Billed amount * next year's tax rate * PV factor
From the present value factor table;
PV factor (1 years, 11%) = 0.9009
Hence,
$17,000 * 0.37 * 0.9009 = $5666.661
Answer:
The correct option is E ,a gain of $2000
Explanation:
A carrying value of $203000 implies that Chang industries currently has obligation of paying bondholders $203000 sitting in the bond payable account.
From the above, to settle the obligation a cash outflow of $203,000,hence paying only $201000 means the company pays $2000 less than it ought to pay,then a gain of $2000 is recorded.
The double entries for this transaction is given below
Dr Notes payable account $203000
Cr cash account $201000
Cr gain on redemption $2000
The gain is written to profit or loss in the period of redemption as it is a realized gain.
Answer:
He will have to come up with a bigger down payment.
His monthly payments will be higher.
Good luck:)
