Answer and Explanation:
(A) E(P) = (0.6) × ($2800) + (0.4) × ($2250)
= $1680+$900
= $2,580
E(S) = (0.6) × (1.40)+(0.4) × (1.5)
= 0.84 + 0.60
= $1.44
Var(S) = (0.6)(1.40 - 1.44)² + (.4)(1.50 - 1.44)²
= .00096+.00144
= 0.0024.
Cov(P,S) = (0.6)(2800-2580)(1.4-1.44) + (0.4)(2250-2580)(1.5-1.44)
= -5.28-7.92
= -13.20
b = Cov(P,S)/Var(S)
= -13.20/.0024
= -£5,500.
there is a negative exposure. as the pound gets stronger/weaker against the dollar the dollar value of british holding goes higher.
(B) b²Var(S) = (-5500)²(.0024) = 72,600($)²
(C). i would Buy 5,500 forward to hedge exchange risk exposure. By doing this, i can eliminate the volatility of the dollar value of your British asset that is due to the volatility of the exchange rate
#1.
When calculating declining-balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the first year of ownership, this error would cause C. the period end assets to be overstated.
#2.
A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the C. modified accelerated cost recovery.
#3.
Salvage value was ignored when originally calculating the units-of-production depreciation. This error would cause B. the period’s net income to be understated.
#4.
The allocation of the cost of a natural resource is B. depletion.
#5.
The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would cause A. the period’s net income to be overstated.
#6.
<span>Intellectual property assets are C. amortized. </span>
The correct answer would be option A, you will simply have to pay some penalty fees.
If you fail to pay your annual taxes, you will simply have to pay some penalty fees.
Explanation:
People who earn income in a country are liable to pay a certain amount from their income as taxes to the government for enjoying the services given by the government to the citizens.
If you have filed for your taxes and then you are unable to pay them, then the Internal Revenue Service will charge you a failure to pay penalty. You will have to submit the penalty fee along with the taxed amount as soon as possible.
Learn more about Purpose of Taxation at:
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Answer:
D. $485,030
Explanation:
Total manufacturing cost for the job = $836,250
Total number of units produced 15,000
Unit product cost $55.75
Manufacturing overhead cost applied
$221,600
Actual manufacturing overhead cost $204,880
Over applied overhead $16,720
The direct method of determining cost of goods sold
Unadjusted cost of goods sold
(9,000 units × $55.75 per unit)
$501,750
Less over applied overhead
($16,720)
Cost of goods sold $485,030
