Answer:
The correct answer is C.
Explanation:
<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>
We need to calculate the net operating income:
Sales= 120,000*40= 4,800,000
Total variable cost= (20 + 10)*120,000= (3,600,000)
Total contribution margin= 1,200,000
Fixed manufacturing costs= (600,000)
Fixed operating (nonmanufacturing) costs= (400,000)
Net operating income= 200,000
Answer: $27000
Explanation:
The amount of goodwill impairment on December 31, 2020 will be:
Amount if goodwill = Net book value - Fair value
= $792,000 - $765,000.
= $27000
Therefore, the amount of Goodwill is $27000
Answer and Explanation:
The preparation of the operating activities section of the statement of cash flows for the year ended December 31, 2020 is presented below;
Cash flow from operating activities
Net income $1,580,000
Add: depreciation expense $58,970
Add: decrease in account receivable $313,770
Less: Increase in prepaid expense -$167,640
Less: Decrease in account payable -$279,000
Less: decrease in accrued expense payable -$124,020
Add: Decrease in inventory $380,000 ($1,880,000 - $1,500,000)
Cash flow provided by operating activities $1,762,080
Answer:
$50,000
Explanation:
The computation of the interest expense for deduction is shown below:
= Interest on a mortgage on his home + Interest on a mortgage on his vacation home
= $40,000 + $10,000
= $50,000
All other information which is given in the question is not relevant for the computation part. Hence, ignored it
We simply add both types of interest related to a mortgage on the home
Answer: Keynesian Economic Theory
Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of Keynesian Economic theory.
