Answer:
The correct answer is D.
Explanation:
Giving the following information:
Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%.
We need to calculate two different impacts:
Accumulated depreciation= actual depreciation - original depreciation
Accumulated depreciation= 50,000 - 75,000= 25,000 overstated
Now, the effect on income:
Savings in tax= 25,000*0.35= $8,750
Answer:
-0.33
Explanation:
The calculation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 80 units - 100 units
= -20 units
And, the average of quantity demanded would be
= (80 units + 100 units) ÷ 2
= 90 units
Change in price is
= P2 - P1
= $2 - $1
= 1
And, the average of the price is
= ($2 + $1) ÷ 2
= 1.5
So, after solving this, the price elasticity of demand is -0.33
The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds <span>by </span>purchasing<span> new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:</span>
Ke<span> = (DIV 1 / Po) + g</span>
Ke<span> = cost of external equity</span>
DIV 1 = dividend to be paid next year
Po = market price of share
g = growth rate
In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.
<span>Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.</span>
Answer:
<u>Corporations </u> comprise about 20% of all businesses but account for about 81% of u.s. business receipts.
Explanation:
A corporation is kind of a business that is set up by a legal organization headed by a person or several partners together. Examples including Microsoft, Apple Inc. etc
While corporations make up just 20% of registered businesses, they are usually quite larger and have national foot print. They can employ thousands of people, have a number of subsidiary companies and work with hundreds of smaller businesses.
Hence, while they are smaller in number, their impact on the economy is very large.
Answer:
C. $2,018.00.
Explanation:
The computation of the lower cost or market value is shown below:
For Jelly
= 150 units × $2 per unit
= $300
For Jam
= 370 units $2.50
= $925
And, for Marmalade
= 260 units × $3.05
= $793
So, the total inventory is
= $300 + $925 + $793
= $2,018
It is come by multiplying the quantity of each one by its lower cost or market value per unit
