Buying goods or services instead of producing or providing them in-house is called:

Caribbean Tours’ total payroll for the month of January was $600,000. The following withholdings, fringe benefits, and payroll t

USPshnik [31]

Answer:

wages expense 600,000 debit

FICA taxes payables 45,900 credit

Federal and state income tax payable 60,000 credit

Wages payable 494,100 credit

--to record employees salaries and witholdings--

payroll tax expense 83,100 debit

Frindge benefit expense 34,800 debit

FICA taxes payables 45,900 credit

FUTA&SUTA tax payables 37,200 credit

Health insurance payable 10,800 credit

Retirement fund obligation 24,000 credit

Explanation:

taxes:

FICA is paid by both, employee and employer. While FUTA&SUTA only by the employer

FICA 600,000 x 7.65% = 45,900

FUTA&SUTA 600,000 x 6.20% = 37,200

fringe benefit:

as they are done by the employer it will create liabilities and obligation

6 0

3 years ago

The nation of Newbie is establishing its monetary system and is designing its currency. The first proposal is to issue the Newbi

aliya0001 [1]

Answer:

The answer is yes, it will function as a medium of exchange.

Explanation:

Money has three functions, store of value, unit of account and medium of exchange. Money that can be used as a medium of exchange is money that is accepted as such by both buyers and sellers, and that is comfortable, or convenient enough, to be carried and exchanged

In this example, the nation of Newbie will issue a currency that can be easily transported. While heavy stock cardboard is a little bit heavier than the paper in which most modern-day currencies are printed, the weight is still light, and does not impede easy transportation and exchange of the currency bills.

Besides, the new Newbie Nugget will be what is know was the legal tender of the nation. The legal tender is the currency that a specific country accepts to collect taxes. This gives more legitimacy to Newbie Nugget and makes it a classical example of a medium of exchange.

3 0

4 years ago

A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa

valina [46]

Answer:

Net Cash flow in year 4 $46,140 

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year 4 cash flow ;

$

Operating cash flow $58,500

Working capital recouped 4,950

Scrap value 6,090

Tax payable (40%*58500) (23400 )

Net Cash flow  46,140 

3 0

4 years ago

Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed e

sveta [45]

Answer:

Break even point in dollars = $28,000

Explanation:

We know Sales - Variable Cost = Contribution

Thus, if we are provided that Variable expenses = 65% then contribution = 100 - 65 = 35%

Also provided selling price per unit = $28

Contribution Therefore = $28 $\times$ 35% = $9.80

Break even point in dollars = $\frac{Fixed\: Cost}{Contribution\: Margin}$

Here, fixed cost = $9,800

Contribution margin = 35%

Putting values in above formula we have,

Break even point in dollars = $\frac{9,800}{0.35} = $28,000$

3 0

3 years ago

Read 2 more answers

Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Requ

RUDIKE [14]

Answer:

Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States

Transfer Pricing:

a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.

b) The appropriate transfer price should be $3 ($2 x 1.5).

Explanation:

Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.

There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:

a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)

b) Resale price method

c) Cost plus method

d) Transactional net margin method (TNMM)

e) Transactional profit split method.

7 0

3 years ago