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nevsk [136]
3 years ago
15

Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an in

ventory understatement by $670,000. Assume that Berkshire has a 35% income tax rate and that this was the only error it made. If undetected, what is the effect of this error on Berkshire's December 31,2017 balance sheet?
a. Assets understated by $670,000 and shareholders' equity understated by $670,000.
b. Assets understated by $435,500 and shareholders' equity understated by $435,500.
c. None of these answer choices are correct
d. Assets understated by $670.000, liabilities understated by $234,500 and shareholders' equity understated by $435,500
Business
1 answer:
ziro4ka [17]3 years ago
8 0

Answer:

d. Assets understated by $670.000, liabilities understated by $234,500 and shareholders' equity understated by $435,500

Explanation:

Assets in Inventory will be understated by $670.000, this will also understate the tax payable to authorities by $234,500 because profits will be understated and equity will be understated by $435,500.

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3 years ago
Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends
Fittoniya [83]

Answer:

The implication is that the Illinois Department of Child Services is a unionized workplace.

Mortimer will derive better benefits that surpass the costs of membership.  He is covered in all collective bargains, even when he resigns his union membership.  Unions negotiate for better working conditions, higher pays, and improved benefits.

When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.

Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.

Explanation:

Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker.  For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not.  The unionized workers are not easy to replace with other workers.

8 0
4 years ago
During the past six months, Ben sold goods that cost $43,500, his
cupoosta [38]

Answer:

for this problem the answer would be A. 3.08

Explanation:

Add the expenses and freight (3,500+1,750)

Subtract that from 43,500 (43,500-5250 which equals 38,250). Divide 38,250 by 12,400.

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6 0
3 years ago
Interest-on-Interest Consider a $1,500 deposit earning 4 percent interest per year for 7 years. How much total interest is earne
valentina_108 [34]

Answer:

<em>Interest earned </em>     =   $420

Explanation:

T<em>he total worth of the investment after the the investment period compounded at certain rate  is called the Future Value.</em>

Future Value= Principal + compounded interest i.e

FV = P × (1+r)^n

r- rate, FV- future value , n- period

FV = ? , P -1,500, r- 4%, n-7 years

FV = 1,500  ×1.04^(7)

FV = 1973.897669

<em>Interest earned (compound intrest) = FV - Principal amount</em>

                         = 1973.897669 - 1,500

                        =  $473.89

Without interest earning interest.

The amount of interest earned will be computed on the principal only

Interest earned = $1,500× 4%× 7

                         = $420

7 0
3 years ago
A toy company creates a new toy that suddenly become very popular. The toys in the stores sell out immediately, and the factorie
shtirl [24]
Your answer would be B. The price will go up because supply is low.
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