The overall learning goals for an educational program like the one you’re taking are called ______

Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and c

Natalija [7]

Answer:

a. Increase the direct costs of the state's debt.

Explanation:

When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.

As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased

5 0

2 years ago

An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit

MatroZZZ [7]

Answer:

Required 1

General Journal

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

Cash and Checks received as Donation Revenue

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

Wages to employee paid

Note Payable $3,420 (debit)

Cash $3,420 (credit)

Repayment of Short Term Loan

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

Purchase of Toys on cash and on credit

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

Donations revenue received in form of Toy Supplies

Required 2

Net Income is $9,520

Explanation:

Calculation of Charity’s preliminary net income.

Donations Revenue ($8,500 + $4,020) $12,520

Less Expenses :

Wages ($3,000)

Net Income/ (Loss) $9,520

7 0

3 years ago

The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T

Natalka [10]

Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item Prob Earn

Booming 20% -6%

Normal 55% 7%

Recession 25% 13%

Ok, now let´s calculate the expected rate of return.

$ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)$

$ExpectedReturn=-0.012+0.039+0.033=0.059$

So the expected rate of return of the stock is 5.90%

Best of luck.

8 0

3 years ago

Star Corp. reported pretax net income from continuing operations of $1,000,000. Tax depreciation exceeded book depreciation by $

anastassius [24]

Answer:

Star Corp

A.

Pretax net income from continuing operations = $1,000,000

Add Accrued Vacation $50,000

Deduct additional Tax Depreciation $100,000

Deduct Dividend received deductions $150,000

Net Taxable Income = $800,000

Income Tax expenses = 21% x $800,000 = $168,000

Income tax Expense provision based on book Net income = 21% x $1,000,000 = $210,000

Income tax benefit = $168,000 minus $210,000 = $42,000 (benefit)

B.

Deferred income tax expense =

Income tax Provision = $210,000

Less income tax expense = $168,000

Differed income tax (benefit) = $42,000

C.

Reconciliation

Book Net income = $1,000,000

Tax rate = 21%

Tax expense provision = $210,000...(a)

Pretax net income from continuing operations = $1,000,000

Add Accrued Vacation $50,000

Deduct additional Tax Depreciation $100,000

Deduct Dividend received deductions $150,000

Taxable Net income (adjusted) = $800,000

Tax rate = 21%

Tax expense provision = $168,000......(b)

Difference (a) minus (b) = $42,000 . This is a benefit to the firm (star corp) because its actual tax liability is less than what it provided for because of net deductibles not accounted for in its income statement.

5 0

3 years ago

At the beginning of the month, the Forming Department of Martin Manufacturing had 26,000 units in inventory, 30% complete as to

miskamm [114]

Answer:

Materials - 100,400
Conversion - 95,600

Explanation:

Equivalent Units = Units Completed and Transferred out + Ending Work in Progress.

Materials Equivalent Units

Ending Work in Progress = 90% * 16,000

= 14,400 units

Equivalent Units = 86,000 + 14,400

= 100,400 units

Conversion Equivalent Units

Ending Work in Progress = 60% * 16,000

= 9,600 units

Equivalent Units = 86,000 + 9,600

= 95,600 units

4 0

2 years ago

The overall learning goals for an educational program like the one you’re taking are called _______.