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PIT_PIT [208]
3 years ago
9

A company failed to record unrealized gains of $21 million on its trading security investments. Its tax rate is 40%. As a result

of this error, total shareholders' equity would be:______.
a) Understated by $12.60 million
b) Understated by $21.00 million
c) Understated by $8.40 million
d) Unaffected
Business
1 answer:
castortr0y [4]3 years ago
8 0

Answer:

A) Understated by $12.60 million

Explanation:

Given that,

Unrealized gains = 21 million

Tax rate = 40%

Total shareholders equity therefore

= 21,000,000 × (1 - 0.40)

= 21,000,000 × 0.60

= $12,600,000

Therefore, total equity will be understated by $12.60 million

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What was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement
Stolb23 [73]

Answer:

Sometimes our justice system can really surprise us. How can a person sue another individual based on arguments that are known to be false? Shouldn't the courts just say no to this kind of lawsuits?

It's plain common sense that the court would dictate that the agreement should be annulled or rescinded based on the mother's fraud attempt or maybe mutual mistake between Michael Jordan and her. Even if they were both convinced that he was the father, after it was proven that he wasn't, the court shouldn't have even wasted its time (and taxpayers money) with this case.

6 0
3 years ago
he idea of increasing opportunity cost is reflected in the A. bowed in shape of the production possibilities frontier. B. positi
wel

Answer:

E) bowed out shape of the production possibilities frontier.

Explanation:

The production possibilities frontier curve is usually has a bowed out shape because as the production of one of the products increases, the opportunity cost of producing the other product also increases.

As shown in the attached image, as the production of Y increases, the opportunity cost of producing X will also increase, giving the curve a bowed shape. The same happens to the opportunity cost of producing Y when the production of X increases.

5 0
3 years ago
Degregorio Corporation makes a product that uses a material with the following direct material standards:
dimaraw [331]

Answer:

Materials quantity variance = $2,350 F

Explanation:

Given:

Standard quantity = 3.7 kilos per unit

Standard price = $5 per kilo

Unit produced = 6,300

Total material = 23,780

Computation:

Materials quantity variance = (Actual quantity × Standard price) - (Standard quantity × Standard price)

Materials quantity variance = (23,780 × $) - (6,300  × 3.7  × $5)

Materials quantity variance = $118,900 - $116,550

Materials quantity variance = $2,350 F

3 0
3 years ago
The main elements of market structure are _____. perfect competition, monopolistic competition, monopoly, and oligopoly perfect
Bess [88]

Answer:

First one:

perfect competition, monopolistic competition, monopoly, and oligopoly

Explanation:

Hope this helps!!:)

6 0
2 years ago
In the long run, fiscal policy influences a. saving, investment, and growth; in the short run, fiscal policy primarily influence
Studentka2010 [4]

Answer:

The correct option here is A) .

Explanation:

Fiscal policy is a tool which is used by a government to influence the economy , through the changes in spending and taxation ( of governments ). This policy affects the economy in both short run and long run. Fiscal policy has its effect on aggregate demand for goods and services and is very much capable of influencing savings, investment and growth in the economy through its contractionary and expansionary fiscal policies. So thus from the above information it can be said that the option A is correct.

3 0
3 years ago
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