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kogti [31]
3 years ago
12

During the year, Apex Co. sold an unprofitable component of the company. The component had a net loss from operations during the

period of $150,000 and its assets sold at a loss of $100,000. Apex reported income from continuing operations before taxes of $128,387. All items are taxed at 30%. How would this item appear in the income statement?
Business
1 answer:
natita [175]3 years ago
6 0

Answer: In the Apex income statement,

Income from continuing operations before taxes $128,387

Taxation $36,483.9

Profit for the year from continuing operations $164,870.9

Loss from discontinued

operations ($175,000)

Loss for the year ($10,129.1)

Explanation: First, there was a tax expense on the profit from continuing operations to the tune of $38,516.1 (30% of $128,387) because the company made a gain. Subsequently, there was a deferred tax asset on the loss sustained on discontinued operations of $75,000 therefore resulting in tax asset of $36,483.9.

There is usually a need to report the profit from continuing operations separately from that of discontinued operations so that actual profit and cash flows from continuing operations can be easily recognizable from that of discontinued operations. In that way, the users of the financial statements would be able to distinguish between the two profit lines.

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Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In​ May, Nexus anticipat
Mama L [17]

Answer:

$33,700 (Favorable)

Explanation:

Note: Figures are not inputted. The missing figures have been figured out as below.

"<em>Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead cost were $23000.  What was nexus fixed manufacturing overhead volume variance in May</em>?"

Solution:

Budgeted fixed overhead costs = Units * Direct labor cost * Standard Direct Labor hours per unit

= 2,700 units * $8.40 * 2.5

= 2,700 units * 21

= $56,700

Fixed manufacturing overhead volume variance = Actual fixed overhead cost - Budgeted fixed manufacturing overhead costs

When Actual fixed overhead = $23,000 ,  Budgeted fixed overhead costs = $56,700

Fixed manufacturing overhead volume variance = $23,000 - $56,700

= $33,700 (Favorable) .

8 0
3 years ago
Mona sets up a business consulting firm in which the employees are motivated because they find their work interesting and creati
gayaneshka [121]

Answer:

Letter C is correct. <em>A firm that relies on high output controls to tap into intrinsic motivation.</em>

Explanation:

By carefully selecting the employees of his consulting firm, Mona ensures that each employee's expected competency and skills profile has been met through rigorous selection, which enhances the chances that operational strategies will be more widely deployed and accepted effective.

By setting the expected results, but letting the employees themselves define how to achieve them, it generates an intrinsic motivation, one that generates internal feelings in the individual to want to achieve personal goals, objectives and projects that motivate and stimulate them.

4 0
3 years ago
Label the statements as increasing GDP in either Canada or the United States.
Sidana [21]

Answer:

Increasing Canadian GDP:

-Toyota, a Japanese company, manufactures cars in Toronto, Ontario.

-ATI Technologies, a Canadian company, operates in Alberta.

Increasing American GDP:

-Toyota, a Japanese company, manufactures cars in San Antonio, Texas.

-Starbucks, a U.S. company, opens stores in New York state.

-Tim Horton's, a Canadian company, opens coffee shops in New England.

Explanation:

Gross domestic product (GDP) is the sum of all final goods and services produced in an economic space for a certain period, usually one year, excluding the intermediate consumption used in production. Until the 1980's, the use of Gross National Product (GNP) was preferred, a measure almost identical to GDP but incorporating goods and services produced by external factors. The variation in this macroeconomic magnitude is often used to measure economic growth.

5 0
3 years ago
Digicon Inc. is a firm with mindshare in the category of digital cameras. With reference to this information, which of the follo
kherson [118]

Answer:

d.The digital cameras manufactured by the firm are seen as the standard for competitors to match.

Explanation:

Mindshare is a term that measures the amount of popularity and consumer awareness in a certain category. To say that Digicon Inc. has a mindshare in the category of digital cameras means that the company sets the bar for the digital cameras market and, therefore, should be seen as the standard that competitors should try to match.

Thus, the answer choice that better fits the description is d.The digital cameras manufactured by the firm are seen as the standard for competitors to match.

3 0
3 years ago
Consider the following demand schedule: Price Quantity Demanded $25 20 $20 40 $15 60 $10 80 What is the price elasticity of dema
mojhsa [17]

Answer:

3.05

1.38

0.725

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Arc elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

Price $25-$20

change in quantity demanded  = 40 - 20 = 20

average of both demands = (40 + 20) /2 = 30

Midpoint change in quantity demanded = 20/30 = 0.67

midpoint change in price = change in price / average of both price

change in price = $25 - $20 = $5

average of both price = ($25 + $20) / 2 = 22.5

Price $20-$15

change in quantity demanded  = 60 - 40 = 20

average of both demands = (60 + 40) /2 = 50

Midpoint change in quantity demanded = 20/50 = 0.4

midpoint change in price = change in price / average of both price

change in price = $20 - $15 = $5

average of both price = ($15 + $20) / 2 = 17.5

midpoint change in price = 5 / 17.5 = 0.29

0.4/0.29 = 1.38

Price elasticity of demand = 0.67 / 0.22 = 3.05

change in quantity demanded  = 80 - 60 = 20

average of both demands = (80 + 60) /2 = 70

Midpoint change in quantity demanded = 20/70 = 0.29

midpoint change in price = change in price / average of both price

change in price = $15 - $10 = $5

average of both price = ($15 + $10) / 2 = 12.5

5/12.5 = 0.4

3 0
3 years ago
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