Answer:
Explanation:
Contribution : Contribution tells the availability of funds. It is computed by taking a difference of sales and variable cost.
The equation to compute net income is shown below:
Sales - Variable cost = Contribution ;
Contribution - Fixed expense = Net income
For computing the foretasted contribution for 2018, the following information is need to be considered which is shown below.
1. As for variable cost, 50% should be recognized i.e 627,888 × 50% = $313,944
2. The fixed cost is increased by $156,000. So the revised fixed cost = 212,000 + $156,000 = $368,000
3. Other things remain same.
The calculation attachment is given below:
Answer:
D. Debit to Dividends Payable.
Explanation:
The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:
- On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.
- On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was <em>discounted</em>, because it is now in the hands of shareholders.
Answer:
b. The fair value of the contingent consideration is included in the overall fair value of the consideration transferred, and a liability or additional owners' equity is recognized.
Explanation:
Measuring the fair value of contingent consideration for financial reporting is a complex process – based on a number of variable inputs, unique risk profiles, and potentially complicated payoff structures.
Last one BC A Plan it can also coins as a idea before action or meeting
Answer: $1,177
Explanation:
First we calculate the Monthly service fee by the formula,
Monthly servicing fee = Monthly servicing fee rate * Outstanding loan balance,
The service fee is 35 basis points which translates to 0.35 % and is an annual figure so we will adjust it to a monthly one,
= (0.35%/12) * $250,000
= $72.92
To calculate amount that passes through to the mortgage pass we do,
Mortgage pass-through amount = Monthly mortgage payment - Monthly servicing fee
= $1,250 - $72.92
= $1,177.08,
= $1,177
$1,177 is the income that will pass through to the investor in the mortgage pass through each month
