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Pachacha [2.7K]
3 years ago
10

Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch

ange from straight-line to accelerated depreciation was made at the beginning of 20x3. Both the $50,000 and the $30,000 are net of related income taxes. What amount should Fox report as prior period adjustments in 20x3?
Business
1 answer:
faust18 [17]3 years ago
8 0

Answer:

$150,000

Explanation:

$150,000

The failure to accrue warranty expense is an accounting error. It gives rise to a Prior period adjustment in the year of discovery (20x3).

Prior period adjustments are limited to corrections of errors affecting prior-year net income. They adjust the beginning balance of retained earnings in the year of correction.

The change in depreciation method is an estimate change, which is reported in earnings. It is not a Prior period adjustmen

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Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per
serg [7]

Answer:

$16,440

Explanation:

If Bruce is able to work 600 hours per year, his salary will be $3,600 (= $6 x 600), but he will lose $2,160 (= $3,600 x 60%) of welfare stipend.

His total welfare stipend is $15,000 if he is not able to work during the year.

Bruce's total income = $15,000 + $3,600 - $2,160 = $16,440

4 0
3 years ago
A firm currently has a debt-equity ratio of 1/2. The debt, which is virtually riskless, pays an interest rate of 6%. The expecte
Svetradugi [14.3K]

Answer:

Expected return on equity is 11.33%

Explanation:

Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:

WACC=(Ke*E/V)+(Kd*D/V)

Kd is the cost of debt at 6%

Ke is the cost of equity at 12%

D/E=1/2 which means debt is 1 and equity is 2

D/V=debt/debt+equity=1/1+2=1/3

E/V=equity/debt+equity=2/1+2=2/3

WACC=(12%*2/3)+(6%*1/3)

WACC=10%

If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity

D/V=debt/debt+equity=1/1+3=1/4

E/V=equity/debt+equity=3/1+3=3/4

WACC=10%

10%=(Ke*3/4)+(6%*1/4)

10%=(Ke*3/4)+1.5%

10%-1.5%=Ke*3/4

8.5%=Ke*3/4

8.5%=3Ke/4

8.5%*4=3 Ke

34%=3 Ke

Ke=34%/3

Ke=11.33%

4 0
3 years ago
The greater the value of the marginal propensity to consume A. the greater the value of autonomous consumption. B. the greater t
just olya [345]

Answer:

C. the greater the value of the multiplier

Explanation:

As we know that

The formula to compute the Government spending multiplier is shown below:

Government spending multiplier = 1 ÷ (1 - marginal propensity to consume)

where,

Marginal propensity to consume refers to the change in consumption with regard to the change in income

So if the value of the marginal propensity to consume is higher than there would also increase in the value of the multiplier and in the same proportion it would be greater

4 0
3 years ago
Read 2 more answers
When partners representing multiple jurisdictions or agencies work together to establish the Internet objectives, what type of c
kondaur [170]

In a Unified Command, members representing multiple jurisdictions and agencies work together to establish: the Internet objectives.

<u> Explanation:</u>

When  two or more persons shares the incident commander role is a Unified Command authority structure in an Incident Command System. It is a way for carrying the commanding activities by which the agencies and jurisdictions that are responding will be working altogether for the establishment of internet objectives.

When there exists incidents having many jurisdictions and agencies that this type of command is very essential. The persons sharing the authority will be working together without affecting the responsibilities and authority of the agencies individually.

3 0
3 years ago
Type the correct answer in the box. Spell all words correctly. Whar happens to you tax liability with proper financial planning?
Shalnov [3]

Answer:

Minimize

Explanation:

With proper planning, you can minimize your tax liability which means owe less taxes at the end of the year if you are smart about what purchases you make and when you make it and such which falls under proper finanicial planning.

6 0
3 years ago
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