Answer and Explanation:
The financial statement effects template to reflect the following events is shown below:-
Balance Sheet
Transaction Cash assets + Non Cash = Liabilities+Contributed                                                 assets                               capital Earned Capital
a.                      $400,000                           $400,000
b.                       -$18,000                                                 
-$18,000
c.                      -$202,000                        -$202,000  
Income statement
Transaction     Revenue     -   Expense    =     Net income
b.                       $18,000            -$18,000
c.                                                  $2,000           -$2,000
 
        
             
        
        
        
Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows 
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows 
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
 
        
             
        
        
        
Answer:
8.13%
Explanation:
Annual return = [ (Total FV/Initial investment)^(1/n) ] -1
n = useful life of the project
Total Future Value = (22650*5) +5000
Total FV = $118,250
Initial investment = $80,000
Annual return = [ (118,250/80,000)^(1/5) ] -1
r = [ (1.478125^(1/5)] -1
r = 1.0813 - 1
r = 0.0813 or 8.13%
 
        
             
        
        
        
Answer:
$27.2
Explanation:
First we have to calculate the total estimated manufacturing overheads which shall be determined as follows:
Estimated total manufacturing overheads=Variable manufacturing overhead+ Fixed manufacturing overheads
Variable manufacturing overhead=Estimated labour hours*manufacturing overhead per labour hour
                                                         =75,000*$10.70=$802,500
Fixed manufacturing overheads=$1,237,500
Estimated total manufacturing overheads=$802,50+$1,237,500
                                                                     =$2,040,000
Now we will compute the predetermined overhead rate which shall be determined using the following formula:
Predetermined overhead rate=Estimated total manufacturing overheads/Estimated labour hours
Predetermined overhead rate=$2,040,000/75,000=$27.2
 
        
             
        
        
        
Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)
2. The higher after tax real gain is for Stephanie losing 35% of her income
which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.
Explanation
The inflation rate is not considered in the calculation because it's constant for both parties.