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3 years ago

You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the

Business

1 answer:

FinnZ [79.3K]3 years ago

3 0

Answer:

d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.

Explanation:

Nominal gain: In business, the term "nominal gain" is described as the increase or hike in the price or cost of an asset as per the "federal tax code" and is also denoted as "nominal amount" and is considered as non-adjustable for inflation. However, when a specific product or asset or stock is being sold more than its "actual price" or above its "purchase price" then a gain or profit is noted and hence is taxed.

In the question above, the correct answer is option D.

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A process cost summary for a production department accounts for all costs assigned to that department during the period plus cos

tigry1 [53]

Explanation:

The process cost shows the summary of the activities related to the production. It includes the cost of goods completed & transferred units and the ending work in process inventory.

So, the given statement is true

The indirect cost are come under the manufacturing overhead cost. So, it would be charged to overhead control account

Thus, the given statement is false.

The direct labor includes that labor which is directly related to the production process of a product. So the single production department is likely to be a direct labor

Thus, the given statement is true.

To record the allocation of overhead, the following journal entry is required

Work in Process Inventory, Baking Dept A/c Dr $24,500

To Factory overhead A/c $24,500

(Being the overhead allocation is recorded)

The computation is shown below:

= Direct labor cost × allocation rate

= $10,000 × 245%

= $24,500

Thus, the given statement is true.

7 0

3 years ago

Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its d

alisha [4.7K]

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

7 0

3 years ago

With ______ advertising on twitter an advertiser can target individuals who used a specific word in their tweets, such as "vacat

malfutka [58]

Promoted Trends- These started off as an extension to promoted tweets, but is now a product by itself. They allow users to see trends promoted by advertisers on top of the Trending Topics list. They are always clearly marked as "Promoted". With this, users can click any promoted trend and see all tweets that have the trending hashtag or word.

3 0

3 years ago

Read 2 more answers

Custom Engines Company has the following estimated costs for the upcoming year: Direct labor costs $62,800 Direct materials used

jenyasd209 [6]

Answer:

Predetermined manufacturing overhead rate= $33.1 per direct labor hour

Explanation:

Giving the following information:

Salary of factory supervisor $37,800

Heating and lighting costs for factory $22,900

Depreciation on factory equipment $5500

The company estimates that 2000 direct labor hours will be worked in the upcoming year.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (37,800 + 22,900 + 5,500) / 2,000

Predetermined manufacturing overhead rate= $33.1 per direct labor hour

8 0

2 years ago

Turnbull Corporation is constructing an office building that it will use in its business. Construction of the building started i

Scorpion4ik [409]

Answer: $12000

Explanation:

The amount of interest should Turnbull include in the cost of the building from the current period will be calculated as the outstanding debt multiplied by the interest rate. This will be:

= $200,000 × 6%

= $200,000 × 6/100

= $200,000 × 0.06

= $12,000

Therefore, the correct option is C.

5 0

3 years ago