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mihalych1998 [28]
3 years ago
8

A company rents a small building with 10,000 square feet of space for $100,000 per year. The rent is allocated to the company's

three departments on the basis of the value of the space occupied by each. Department 1 occupies 1,500 square feet of ground-floor space, Department 2 occupies 3,500 square feet of ground-floor space, and Department 3 occupies 5,000 square feet of second-floor space. If rent for comparable floor space in the neighborhood averages $15.00 per sq. ft. for ground-floor space and $10 per sq. ft. for second-floor space, what annual rent expense should be charged to each department
Business
1 answer:
nasty-shy [4]3 years ago
5 0

Answer:

department 1: $18,000

department 2: $42,000

department 3: $40,000

Explanation:

total annual rent expense $100,000

total rented space 10,000 sq ft

first we must calculate the rental cost based on comparable floor space:

(1,500 x $15) + (3,500 x $15) + (5,000 x $10) = $22,500 + $52,500 + $50,000 = $125,000

now we allocate costs on the following proportion: $100,000 / $125,000 = 0.8

department        comparable rent        proportional cost         total    

1                              $22,500                      0.8                           $18,000

2                             $52,500                      0.8                          $42,000

<u>3                             $50,000                      0.8                          $40,000</u>

total                       $125,000                                                    $100,000

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WITCHER [35]

Answer: true

Explanation:

8 0
3 years ago
A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On N
elixir [45]

Answer: A $304

Explanation: LIFO means last in first out. It means it is the older inventory that is sold off first.

On November 1, total value of inventory = $20 × 5 =$100

On November 2, total value of inventory = $100 + ( $22 × 10) = $320

On November 6, total value of inventory = $320 +($25×6) = $470

On November 8, 8 units of inventory was sold. This would be taken from the older stock of inventory. These inventories are the those from November 1 and 2.

The remaining inventory after the sale = (7 × 22) + 150 = $304

6 0
3 years ago
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the
natali 33 [55]

Answer:

The correct answer is $10,000, 4% and 4th year.

Explanation:

According to the scenario, the given data are as follows:

Initial purchase = $10,000

At the end of 1st, 2nd and 3rd year = $400

At the end of 4th year = $10,400

(1). The principal amount of this bond is $10,000.

As Initial purchase of bond = Principal amount of bond.

(2). The coupon rate is 4%.

As, at the end of 4th year it pays = $10,400

Here, Principal amount = $10,000 and coupon value = $400

So, Coupon rate = $400 ÷ $10,000 = 4%

(3). The term of this bond is 4 years.

As the principal amount is repaid fully at the end of 4th year.

3 0
3 years ago
"To meet the customer's investment objective of tax advantaged income, the BEST recommendation is for the customer to:"
marishachu [46]

Customer Name: Jack and Jill Customer

Ages: 62 and 57

Marital Status: Married - 39 years

Dependents: None

Occupations: Jack - Manufacturing Manager - Dyno-Mite Corp.

Jill - Marketing Consultant - Self Employed

Household Income: $140,000 Joint Income

($100,000 for Jack and $40,000 for Jill)

Net Worth: $1,100,000 (excluding residence)

Own Home: Yes $420,000 Value, No Mortgage

Investment Objectives: Income / Tax Advantaged

Risk Tolerance: Moderate

Investment Time Horizon: 25 years

Investment Experience: 30 years

Tax Bracket: 30%

Current Portfolio Composition: Cash in Bank: $30,000

Growth Fund: $50,000

Variable Annuity: $50,000

Growth Stocks: $150,000

Retirement Accounts:

Jack's IRA: $100,000 invested in growth stocks

Jack's 401(k): $600,000 invested in Dyno-Mite Corp. stock

Jack's 529 Plan for Grandchild: $20,000 in growth mutual fund

To meet the customer's investment objective of tax advantaged income, the BEST recommendation is for the customer to:

A. immediately liquidate the entire Dyno-Mite position and invest the proceeds in high yield bonds

B. set a minimum and maximum threshold price to liquidate as much of the Dyno-Mite stock as the customer will permit, and invest the proceeds in high yielding common and preferred stocks

C. liquidate the IRA without penalty since Jack is past age 59 1/2, and use the proceeds to buy corporate income bonds

D. consider early retirement, since Jack is old enough to receive Social Security as a means of supplementing income

Answer:

B. set a minimum and maximum threshold price to liquidate as much of the Dyno-Mite stock as the customer will permit, and invest the proceeds in high yielding common and preferred stocks

Explanation:

Given that, the customer has a "moderate" risk tolerance level and dividend income is at the moment taxed at the preferential rate of 15%, therefore, it is expected that investments in high yielding common and preferred stocks will meet the customer's objective of tax-advantaged income.

Hence, the right answer is Option B. set a minimum and maximum threshold price to liquidate as much of the Dyno-Mite stock as the customer will permit, and invest the proceeds in high yielding common and preferred stocks

5 0
3 years ago
Suppose Saron has 7 Birr to be spent on two goods: banana and bread. The unit price of banana is 1 Birr and the unit price of a
mojhsa [17]

Answer:

Solution:

A.

p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}p

x

=3,G

x

=

3

100

=33

3

1

p_y=5, G_y=\frac{100}{5}=20p

y

=5,G

y

=

5

100

=20

B.

100-0.25\times 100=75100−0.25×100=75

p_x=3, G_x=\frac {75}{3}=25p

x

=3,G

x

=

3

75

=25

p_y=5, G_y=\frac{75}{5}=15p

y

=5,G

y

=

5

75

=15

C.

p_x=6, G_x=\frac {100}{6}=16\frac{2}{3}p

x

=6,G

x

=

6

100

=16

3

2

D.

p_y=5, G_y=\frac{100}{4}=25p

y

=5,G

y

=

4

100

=25

2.

MU_x=68-60=8, p_x=2MU

x

=68−60=8,p

x

=2

MU_y=29-25=4, p_y-?MU

y

=29−25=4,p

y

−?

\frac {MU_x}{p_x}=\frac{MU_y}{p_y}

p

x

MU

x

=

p

y

MU

y

\frac{8}{2}=\frac {4}{p_y}

2

8

=

p

y

4

p_y=1p

y

=1

8 0
3 years ago
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