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Bad White [126]
3 years ago
8

Prepare journal entries to record the following production activities. 1. Incurred $59,000 of direct labor in production (credit

Factory Payroll Payable). 2. Incurred $22,000 of indirect labor in production (credit Factory Payroll Payable). 3. Paid factory payroll.

Business
1 answer:
kodGreya [7K]3 years ago
4 0

Answer: The answer has been solved and attached

Explanation:

The work in progress and inventory is the inventory that has almost finished by a company and waiting so was to be changed to finished goods. We are told that direct labour is used, therefore we will have to debit work in progress inventory by $59,000 and credit payable factory payroll by $59,000.

Factory overhead are expenses that a company makes. We have to debit it by $22,000 and credit payable factory payroll by $22,000.

The solution has been attached.

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Problem 11-1 Jain Mart is to depreciate an asset bought for $500,000 using the SOYD method over a life of 8 years. If the deprec
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Answer:

B. $20,000

Explanation:

Depreciation in year 3 = $80,000

According to the sum of the Years' Digits Depreciation, the depreciation for an asset bought for $500,000 and an expected life of 8 years, at year 3, is given by:

D_{y=3}=\$80,000 = \frac{8-2}{8+7+6+5+4+3+2+1}*(\$500,000-Salvage) \\Salvage = 6*(\frac{\$500,000}{6} -\$80,000)\\Salvage=\$20,000

The salvage value used in computing the depreciation charges is $20,000.

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3 years ago
Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Requ
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Answer:

Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States

Transfer Pricing:

a) The best transfer pricing method in this case is the cost plus method.  This gives the transfer price as Cost + 50%.

b) The appropriate transfer price should be $3 ($2 x 1.5).

Explanation:

Transfer pricing arises when controlled entities set prices for exchange of goods and services.  When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen.  It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.

There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price.  According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:

a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)

b) Resale price method

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7 0
3 years ago
Monica has a Roth IRA to which she contributed $15,000. The IRA has a current value of $37,500. She is 54 years old and takes a
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Answer:

$10,000

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Therefore, the amount of distribtion that will be taxable can be calculated as follows

Amount of taxable distribution= $25,000-$15,000

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Hence the amount of distribution that will be taxable to Monica is $10,000

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Answer:

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