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3 years ago

Dove Corporation, a calendar year C corporation, had the following information for 2016:

Business

1 answer:

poizon [28]3 years ago

8 0

Answer:

$1,032,260

Explanation:

To calculate Dove's unappropriated retained earnings balance (UREB) as of December 31, 2016, the following simple formula is employed:

UREB = Unappropriated retained earnings as of 01 January 2016 + Net income per books (after-tax) - Cash dividend distributions

UREB = $796,010 + $386,250 - $150,000 = $1,032,260

Therefore, Dove's unappropriated retained earnings balance (UREB) as of December 31, 2016 is equal to $1,032,260.

Note:

This will appear in Schedule M–2 of Form 1120 as follows:

Unappropriated retained earnings as of 01 January 2016 $796,010

Net income per books (after-tax) $386,250

Sub-Total $1,182,260

Less: Cash dividend distributions $150,000

Unappropriated retained earnings as of 31 December 2016 $1,032,260

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Pet Toys Inc. has four customers. Details on revenues and expenses are presented below. Customer A Customer B Customer C Custome

natali 33 [55]

Answer:

a. Customer A.

Explanation:

operating profit = EBIT

in this case, the company allocates fixed operating costs equally, which is incorrect since the sales volumes are very different. Fixed operating costs should be allocated proportional to the amount of units sold:

total fixed operating costs = ($30,000 x 4) + ($20,000 x 4) + ($10,000 x 4) = $240,000

total sales = 10,000 + 20,000 + 35,000 + 50,000 = 115,000 units

fixed operating costs per unit = $240,000 / 115,000 = $2.08696 per unit

A B C D

units sold 10,000 20,000 35,000 50,000

sales $100,000 $150,000 $200,000 $250,000

total variable costs $75,000 $105,000 $125,000 $155,000

allocated fixed costs $20,869 $41,739 $73,044 $104,348

EBIT per customer $4,131 $3,261 $1,956 -$9,348

EBIT per unit $0.41 $0.16 $0.06 -$0.19

Since customer A's EBIT per unit sold is higher, then it is the client with the highest customer level operating profit per unit sold.

3 0

3 years ago

The market for. pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve. a. Draw the compet

Klio2033 [76]

The market for the pizza has a downward sloping demand curve which means that with the increase in the price of the pizza, the demand of the pizza will decrease but it's supply will increase.

Explanation:

Downward slanting demand curve implies a judicious purchaser will request to a greater degree a product when its price falls. A portion of the explanations behind. the marvel would be: Income Effect : When cost of an item falls, shopper's genuine salary rises that is he would now be able to buy a greater amount of the ware with a similar pay.

A decent with a cost far beneath what the market is eager to pay will show up toward the lower right – extremely low cost, exceptionally popularity. The costs in the middle of would then "fill in" the bend, inclining descending from the upper left to bring down right.

7 0

3 years ago

High Step Shoes had annual revenues of $202,000, expenses of $112,200, and dividends of $24,800 during the current year. The ret

wel

Answer and Explanation:

The journal entry required to close the income summary account is given below:

Income summary Dr ($202,000 - $112,200) $89,800

To retained earnings $89,800

(Being the closing of the income summary is recorded)

The above entry should be passed for closing out the income summary account

The same is to be considered

5 0

2 years ago

Goods X and Y are perfect substitutes. When the market price of good X is $5/unit, firm F produces 500 units of X. When the pri

goldenfox [79]

Answer:

According to this situation, we assume that firm F is the only producer of product X.

Explanation:

A perfect replacement is a condition in which two items are considered equal. Great replacements are goods and you can't build a brand whereby consumers like the commodity.

Except for a market price, optimal substitution suppliers must have no impact on the quality.

Therefore, in this situation product Y's price rises, so people shift for product X.

In results, firm F had to increase his supply which shows that firm F is the only producer of product X in the industry.

3 0

3 years ago

On January 15, 2019, Dillon purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the r

lutik1710 [3]

Answer:

$175,000

Explanation:

Depletion per Unit =$3500000 / 500000 = $7 per unit

25,000 units were sold during the year.

There are two ways of figuring depletion on mineral property.

1. Cost Depletion

2. Percentage Depletion

Generally, we must use the method that gives you the larger deduction.

Calculation of Cost Depletion:

Cost Depletion = Units Sold * Depletion Rate = 25,000 units * $7 per unit = 175,000

Calculation of Percentage Depletion:

Percentage Depletion = Gross Income from Property During the Year * Depletion Rate = 800,000 * 22% = 176,000

Percentage Depletion cannot be more than 50% of net taxable income from the property.

Percentage Limit = (Sales - Expenses ) * 50% = (800,000 - 500,000) * 50% = 300000*50% = 150,000

Thus Percentage Depletion is limited to $150,000

Thus, the deduction is $175,000 (Higher to Cost or Percentage Depletion)

7 0

3 years ago