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joja [24]
3 years ago
15

A customer's account appears as follows:

Business
1 answer:
mafiozo [28]3 years ago
6 0

Answer:

(C) $55,000

Explanation:

Market Value : $125,000

$125000/2= $62,500

$62,500- $35,000 debit= $27,500 excess equity

Hence:

$27,500 excess equity x 2= $55,000 Buying Power

Therefore the buying power in the account is $55,000

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Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce
lisabon 2012 [21]

Answer:

<h2>The United States has the comparative advantage in car production.</h2>

Explanation:

  • Japan has a lower opportunity cost of producing televisions compared to cars, implying that Japan basically has to give up or sacrifice or trade off relatively less number of cars to produce one more television compared to the production of one more car.
  • Alternatively, US has a lower opportunity cost of producing cars relative to televisions meaning that US has to give up, sacrifice or trade off less number of televisions to manufacture one more car in comparison to the production of one more television.
  • Hence, in this case,US has a comparative advantage in the production of cars and Japan has a comparative advantage in production of television and both countries can produce these respective commodities by using relatively less productive resources or factor inputs.
8 0
3 years ago
(Deferred Tax Asset with and without valuation Account) Jennifer Capriati Corp. has a deferred tax asset account with a balance
valina [46]

Answer:

a. Income Tax Expense (Dr.) $298,000

Deferred Tax (Dr.) $30,000

Income Tax Payable (Cr.) $328,000

Explanation:

b. Income Tax expense (Dr.) $30,000

Allowance to reduce deferred tax value to NRV (Cr.) $30,000

Income tax payable is calculated based on tax rate of 40%.

$820,000 * 40% = $382,000

8 0
3 years ago
Ganado and Equity Risk Premiums. Maria​ Gonzalez, Ganado's Chief Financial​ Officer, estimates the​ risk-free rate to be 3.50 %​
Elza [17]

Answer:

WACC (CAPM) 5.2%

WACC (ICAPM) 5.03%

Explanation:

The weighted average cost of capital is

Ke * E/ E+D + Kd * (1 -t) D / E+D

Ke = Rf + (Rm - Rf) * \beta

Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12

Ke (CAPM) = 7.532%

Kd (CAPM) = Kd (1-t)

Kd (CAPM) = 7.60 (1-39%)

Kd (CAPM) = 4.636%

WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%

WACC (CAPM) = 5.2164%

Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86

Ke (ICAPM) = 6.596%

Kd (ICAPM) = Kd (1-t)

Kd (ICAPM) = 7.60 (1-39%)

Kd (ICAPM) = 4.636%

WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%

WACC (CAPM) = 5.03%

7 0
3 years ago
When the accounts of Blue Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual
torisob [31]

Answer:

1.-

insurance expense   1,020 debit

    prepaid  insurance              1,020 credit

2.-

rent revenue   1,650 debit

            cash                          1,650 credit

cash      1,650 debit

   unearned revenue      1,650 credit

unearned revenue    1,100 debit

   rent revenue                      1,100 credit

3.-

advertizing expense    535 debit

    advertizing supplies          535 credit

4.-

interest expense     802 debit

      interest payable         802 credit

Explanation:

2-years of 4,896 AKA 24 months

months outstanding during the year: August 1st to December 31th: 5 months

4,896 x 5/24 = 1,020

purchases of advertising materials  801

materials on hand at year-end       <u> (266)  </u>

advertising expense                         535

we must reverse the entry as the rent revenue wasn't accrued yet we have unearned revenue and at year-end we adjust for the earned protion which is 2 months: 1,650 x 2/3 = 1,100

as the inerest are accrued it means we aren't paying them at year-end

5 0
3 years ago
Plastic Company purchased 100 percent of Spoon Company's voting common stock for $666,000 on January 1, 20X4. At that date, Spoo
ziro4ka [17]

Answer: $68,600

Explanation:

Investment Income using Equity method = Plastic company Share in income of Spoon company - Depreciation on Assets

Plastic Company share in Income of Spoon Company = 100% * 78,000 = $78,000

Land cannot be depreciated so only Equipment will be depreciated.

= 94,000/10 years

= $9,400

Investment Income using Equity method = 78,000 - 9,400 = $68,600

6 0
3 years ago
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