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True [87]
3 years ago
10

Shen purchased corporate stock for $20,000 on april 10, 2015. on july 14, 2017, when the stock was worth $12,000, shen died and

his son, mijo, inherited the stock. mijo sold the stock for $14,200 on november 12, 2017. what is the amount and character of mijo's gain or loss?
Business
1 answer:
Alinara [238K]3 years ago
4 0
Mijo made $2,200 profit. The initial investment had nothing to do with him therefore it is not considered his loss because the initial investment did not belong to him. Once he inherited the stock at $12,000 his personal profit/loss began to occur. Also the character of the profit would be not a fixed remuneration becauae of the flux of the markets, fees, etc.
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An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit
MatroZZZ [7]

Answer:

Required 1

<u>General Journal</u>

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

<em>Cash and Checks received as Donation Revenue</em>

<em />

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

<em>Wages to employee paid</em>

<em />

Note Payable $3,420 (debit)

Cash $3,420 (credit)

<em>Repayment of Short Term Loan</em>

<em />

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

<em>Purchase of Toys on cash and on credit</em>

<em />

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

<em>Donations revenue received in form of Toy Supplies</em>

Required 2

Net Income is $9,520

Explanation:

<u>Calculation of Charity’s preliminary net income.</u>

Donations Revenue ($8,500 + $4,020)  $12,520

Less Expenses :

Wages                                                       ($3,000)

Net Income/ (Loss)                                    $9,520

7 0
3 years ago
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Mama L [17]

Answer and Explanation:

The identification is as follows:

As we know that

M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc

While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc  

Since Susan has 2 year CD so it would be classified as a M2 money supply

Since larry withdraw from the bank so it would be included in M1 and M2

And, since raphael has $25,000 in money market  so  would be classified as a M2 money supply

7 0
2 years ago
Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhe
pychu [463]

Answer:

Primera Company

1. Plantwide predetermined overhead rate:

= $1,536,000/768,000

= $2.00 per direct labor hour

Overhead assigned to each product:

                                   Product 1    Product 2

Direct labor hours     480,000        147,200

Predetermined overhead

 rate  = $2 per direct labor hour

Total overhead =    $960,000    $294,400

2. Predetermined departmental overhead rates:

Department 1:    

Direct labor hours $2 ($1,536,000/768,000)

Department 2

Machine hours = $7.385 ($1,536,000/208,000)

Overhead assigned:

Product 1 = $960,000 (480,000 * $2)

Product 2 = $70,896 (9,600 * $7.385)

3. The applied overhead for the year:

Department 1 = $1,254,400 (627,200 * $2)

Department 2 = $1,512,448 (204,800 * $7.385)

Total   =            $2,766,848

Overapplied overhead for the firm = $1,134,848 ($2,766,848 - $1,632,000)

4. Debit Manufacturing overhead $1,134,848

Credit Cost of goods sold $1,134,848

To transfer the overapplied overhead to cost of goods sold.

Additional information needed if the variance is material is to determine the percentages to allocated to Work in process, Finished Goods, and Cost of Goods Sold.

Explanation:

a) Data and Calculations:

Estimates:

                            Department 1   Department 2      Total  

Direct labor hours    640,000            128,000        768,000

Machine hours            16,000            192,000        208,000

Overhead cost       $384,000       $1,152,000    $1,536,000

Actual results:

                            Department 1   Department 2      Total  

Direct labor hours     627,200             134,400       761,600

Machine hours             17,600            204,800      222,400

Overhead cost       $400,000       $1,232,000  $1,632,000

                       Product 1 Product 2        Total  

Direct labor hours:

Department 1 480,000    147,200      627,200

Department 2  96,000     38,400       134,400

Machine hours:

Department 1    8,000        9,600         17,600

Department 2 24,800    180,000      204,800

3 0
2 years ago
Compensation for top executives (e.g., CEOs and CFOs) has become more variable over time. For example, recent data show that in
Luba_88 [7]

Answer:

Because :- CEOs & CFOs can have significant impacts throughout the entire business, & the type of reward plan will encourage the CFOs to work in a more rational manner.

Explanation:

CEOs & CFOs are a part of upper level of management of an organisation. Effectiveness & Efficiency of their managerial skills is very crucial to management of company. So, to encourage proper management of companies by senior managers, they can be incentivised by mix of fixed & variable salary structure. The variable component of salary as per company performance under CEO or CFO, positively motivates them to improvise their performance, which subsequently improves company performance.

3 0
3 years ago
According to Larry Marder, the president of the McFarlane Companies, the company has changed and morphed and grown over the year
cricket20 [7]

Answer:

Unrelated Diversification

Explanation:

The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.

8 0
3 years ago
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