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Annette [7]
3 years ago
9

On December​ 31, Year​ 10, Brown Company changed its inventory valuation method from the​ weighted-average method to FIFO for fi

nancial statement purposes. The change will result in an​ $800,000 decrease in the beginning inventory at January​ 1, Year 10. The tax rate is​ 30%. The cumulative effect of this accounting change for the year ended December​ 31, Year​ 10, in the statement of retained earnings​ is:
Business
1 answer:
Butoxors [25]3 years ago
6 0

Answer: Overstatement of profit by $8000

Explanation:

The change in an accounting method of valuing stock which results in decrease in the value of stock will increase the profit when compared to the period before the method that decrease the stock was used. To effect the change a debit charge will be made to the retained earnings and a credit charge to the stock account to reduce the value.

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You wish to sell short 100 shares of XYZ corporation stock. If the last two transactions were at $34.10 followed by $34.15, you
yan [13]

Answer: b. 34.15 or higher

Explanation:

Short sales refer to the sale of borrowed stocks in anticipation that the stock price of the underlying stock will fall. This will then enable you to make a profit by buying the cheaper shares and giving it back to the entity you borrowed from thereby making a profit.

With short sales, the price is usually upward trending so will normally increase from the last price. As the last price here was $34.15, that would be the likely minimum for the next sale.

This means that the next sale will either be at a price of $34.15 or a price higher than that.

6 0
2 years ago
in a typical balance of payments crisis part 2 a. the interest parity curve shifts out. b. the interest parity curve shifts in.
Wewaii [24]

In a typical balance of payments crisis part the interest parity curve shifts in. Capital exodus results from downward pressure on interest rates, whereas imports rise as income levels rise.

As a result, the exchange rate depreciates, moving the BP curve to the right. The I and Y combinations that result in balance of payments equilibrium are provided by the BP curve. A given domestic price level, a certain currency rate, and a specified net foreign debt are used to build the BP curve. When the capital account deficit equals the current account surplus, equilibrium has been reached. Interest rates between two countries must be equal for interest rate parity to persist in a fixed exchange rate regime.

To learn more about payments, click here.

brainly.com/question/15138283

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6 0
1 year ago
4. Firm E must choose between two alternative transactions. Transaction 1 requires a cash outlay of $9,000; this expense would b
Pie

Answer:

a. Transaction 1

It is not deductible so the Taxable income is $9,000

Transaction 2

It is deductible, taxable income would be;

= 13,500 * ( 1 - Tax)

= 13,500 * ( 1 - 20%)

= $10,800

b. Transaction 1

It is not deductible so the Taxable income is $9,000

Transaction 2

It is deductible, taxable income would be;

= 13,500 * ( 1 - Tax)

= 13,500 * ( 1 - 40%)

= $8,100

8 0
3 years ago
When julie is focused on measuring performance and correcting as necessary, she is focusing on which of these managerial functio
Leya [2.2K]

Julie is focused on the control managerial function when she measures performance and corrects as necessary. There are five types of management functions and they are planning, organizing, directing, coordinating and control. In the control stage it allows managers to determine how much or how little control over the organization and their employees they wish to have.

6 0
3 years ago
In 2016, 59.7 percent of the adult population (253 million) was employed. If the employment rate increased to 62 percent,
kolezko [41]

Answer:

a. 5.819 million

b. $709918

Explanation:

Below is the calculation:

a. Total number of adult population = 253 million

Total employed adult = 253 x 59.7% = 151.041

Number of employed adult after increase in employment rate = 253 x 62% = 156.86

More people would be working = 156.86 - 151.041 = 5.819 million

b. GDP per capita is $122,000, so increase in GDP = 5.819 x 122000

    Increase in GDP = $709918

8 0
3 years ago
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