Networking is the most effective search method for finding job leads.<br><br> T<br> F

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started

MAVERICK [17]

Answer:

$500 gain and $185 tax

Explanation:

Sale of share = No. of NQOs × No. of shares × Selling price per share

= 10 × 10 × $20

= $2,000

Basis = No. of NQOs × No. of shares × share price @$15

= 10 × 10 × $15

= $1,500

Gain realised = Sale of share - Basis

= $2,000 - $1,500

= $500

The tax is calculated as follows:

= Gain realised × marginal tax rate

= $500 × 37%

= $185

4 0

4 years ago

Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re

romanna [79]

Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)

So Prog A is more effective as it gives a Positive NPV

8 0

4 years ago

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the

hram777 [196]

Answer:

Salaries and wages payable...................Dr $20,000

Salaries and wages expense $20,000

Explanation:

As per accrual system, an expense is incurred when it is accrued irrespective of when it is paid. So, $20,000 was accrued in December 31, salary and wages expenses would have been debited then amounting to $20,000.

In order to rectify the mistake of double counting, the entry passed by the accountant would be reversed to nullify the effect.

Adjusting Journal entry:

Particulars Debit Credit

Salaries and wages payable $20,000

Salaries and wages expense $20,000

(Being double counting of salaries and

wages expense rectified)

4 0

3 years ago

Selected financial information for Feemster Company for 2012 follows. Sales $ 2,000,000 Cost of goods sold 1,400,000 Merchandise

olganol [36]

Answer:

The merchandise inventory turnover during 2012 is 8 times.

Explanation:

The following information is given:

Sales - $ 2,000,000

Cost of goods sold - $1,400,000

Merchandise inventory Beginning of year - $ 155,000

Merchandise inventory End of year - $ 195,000

After considering these information, it is easy to calculate the merchandise inventory turnover. The formula is shown below:

Merchandise Inventory Turnover = COGS ÷ Average inventory

where average inventory = (opening inventory + ending inventory) ÷ 2

So,

Average inventory = ( $ 155,000 + $ 195,000) ÷ 2

= $175,000

Now, we can compute easily

Merchandise Inventory Turnover = 1,400,000 ÷ $175,000

= 8 times

Thus, the merchandise inventory turnover during 2012 is 8 times.

3 0

4 years ago

Katie’s Cleaning Service has cleaning contracts for 15 apartments, 45 family homes, and 25 office buildings. She estimates that

Tomtit [17]

Answer:

correct option is B: $29,000

Explanation:

given data

apartments = 15

family homes = 45

office buildings = 25

pay for cleaning staff = $12.50/hour

solution

we get here Total Budgeted hours that is

type Number Hrs/Clean No of Cleans Total Hours

Apartments 15 4 4 240

Homes 45 6 4 1080

Office 25 10 4 1000

Total Budgeted hours need per month 2320

Budgeted cost per month that is 12.50/hrs so it will 29000

so correct option is B: $29,000

3 0

4 years ago

Networking is the most effective search method for finding job leads. T F