Answer:
c. Neither Gabriella nor Juanita will recognize gain on the transfer.
Explanation:
This is because gabriella transfers cash of 50,000 and does not earn any gain on it, so no gain is recognized.
Answer:
Please find the required diagram in the attached image
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
As a result of the study, there would be an increase in the demand for coffee. This would shift the demand curve to the right. As a result, there would an increase in equilibrium price and quantity
Answer:
Predetermined manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
Product A:
Direct labor hours= 1,600
Product B:
Direct labor hours= 400
Estimated overhead= $20,000
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 20,000/2,000
Predetermined manufacturing overhead rate= $10 per direct labor hour
Find the answers in the explanation below
Explanation:
Cash dividend: Cash dividend is dividend that is paid in cash to shareholders in the event that the company or firm does not need the money for any kind of operation. This means that the company is giving economic value to its shareholders. This transfer of economic value to shareholder means that the shares price of the company will drop. An example is a company having a share dividend of 5%. That means that the price of the company shares will fall by 5%.
Stock dividend: Stock dividend unlike cash dividend is increase stock dividend as well as help stockholders to avoid tax. This subsequently does not increase the value of the company. For example, if stock dividend of a company is 5% and as much as 1 million shares, when stock dividends are declared the stockholder gets extra of 50,000 shares. The stock holder can either keep the shares or sell it to create his own
Cheers
Answer: Corporate bond
Explanation:
It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.
On the other hand, the After Tax Cost of the yield of the corporate bond will be:
= Yield × (1-Tax Rate)
= 8.25% × (1-35%)
= 8.25% × 65%
= 5.36%
Therefore, the Corporate Bond should be chosen since it has a higher yield.
