Answer:
Statement of Comprehensive Income for 2021;
Net Income = $1,376,000
Other Comprehensive income (loss):-
Foreign Currency Translation Gain (Net of Tax):
= $350,000 - 25% of $350,000
= $350,000 - $87,500
= $262,500
Unrealized losses on investment securities (Net of tax):
= $90,000 - 25% of $90,000
= $90,000 - $22,500
= ($67,500)
Total other Comprehensive income:
= Foreign Currency Translation Gain (Net of Tax) + Unrealized losses on investment securities (Net of tax)
= $262,500 + ($67,500)
= $262,500 - $67,500
= $195,000
Comprehensive Income = Net Income + Total other Comprehensive income
= $1,376,000 + $195,000
= $1,571,000
Answer:
Crane Inc.
The ending inventory at cost using the conventional retail method is:
= $23,426.
Explanation:
a) Data and Calculations:
Cost Retail
Beginning inventory $12,000 $19,600
Net purchases 105,056 159,600
Net markups 9,600
Goods available $126,656 $188,800
Ratio of cost to retail price = 67% ($126,656/$188,800)
Cost of goods sold 107,602 ($160,600 * 67%)
Ending inventory $23,426
Answer:
D) Even with an absolute advantage, the United States would have benefited from importing those products for which Britain had a comparative advantage.
Explanation:
The basis for foreign trade are comparative advantages, not absolute advantages. You must remember that in order for trade to be effective and long lasting, both sides must benefit from it, not just one side.
Resources are limited, and that applies to everyone, to every corporation and to every country. You might have an absolute advantage at producing everything, but your production possibilities frontier sets you a limit on what products or combination of products you can produce. Sometimes it might be beneficial to trade and receive some products that you could produce more efficiently, but their opportunity costs might be too high. Probably you can get them at lower costs from foreign suppliers and use those resources for producing something else.
Answer:
c. $74,000
Explanation:
Raw Material Ending Inventory = Raw Material Beginning Inventory + Purchases - Cost of material for the year
Raw Material Ending Inventory = Raw Material Beginning Inventory + (Total Purchases- Indirect material purchased) - Cost of material for the year
$25,000 = $27,000 + ( $100,000 - $28,000 ) - Cost of material for the year
$25,000 = $27,000 + 72,000 - Cost of material for the year
$25,000 = $99,000 - Cost of material for the year
Cost of material for the year = $99,000 - $25,000
Cost of material for the year = $74,000
Answer: $6,000
Explanation:
As per IRS deduction rules in 2020, the maximum deductible IRA contribution for a person who does not participate in an employer-sponsored plan is $6,000.
That is therefore the maximum deductible that William can make in this scenario.