Answer:
Assets must have increased by $5,000, or stockholders' equity must have decreased by $5,000
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity.
This may be expressed mathematically as
Assets = Liabilities + Equity
As such, an increase in total liabilities by $5,000 from the options given means that assets must have increased by $5,000, or stockholders' equity must have decreased by $5,000, this way, the accounting equation stays true.
Answer:
Hamlet
Hamlet can recognize a loss of $1,500 in 2020.
Explanation:
a) Data and Calculations:
Number of shares in Vanity Corporation = 1,000 common stock
Period of stockholding = 2 years
Cost of investment = $4,000
Sales proceeds from shares = $2,500
Capital loss = $1,500
b) Hamlet can use the capital loss deduction of $1,500 to reduce his other capital gains of the similar term in the first instance. Note that the capital loss is a long-term capital loss since the investment was held for two years.
Answer:
Total Product Costs under absorption costing per unit $ 32.59
Explanation:
Under absorption costing the fixed overheads are included in the product costs. We calculate the total manufacturing costs having fixed overheads and variable overheads and divide it with the number of units to get the product cost per unit.
Expected units to be produced 51,000 units
Direct materials $ 12 * 51,000= $ 612000
Direct labor $ 18 per unit * 51,000= $918000
Overhead
Total variable overhead $ 31,000
Total fixed overhead $ 101,000
Total Manufacturing Costs $1662000
Total Manufacturing Costs per unit = Total Costs/ Total units= $1662000 / 51000= $ 32.59
