Answer:
The increase in operating profit is $1,829.00.
Explanation:
The rise or fall in the operating income:
= Purchase unit × ( offer price- direct material- direct labor- variable overhead)
The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)
The rise or fall in the operating income: = $1829
Therefore the profit will increase by $1829
Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.
Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
Answer:
D. Good intentions do not always lead to desirable outcomes.
Explanation:
Here in the question, it is evident that in order to protect the children from poisoning themselves, the government took a good step by passing a regulation to put child-resistance safety caps on the pill bottles.
But it is also evident that this regulation back fired and caused more casualties than before due to the non serious behavior of the general public.
Hence it can be concluded that the government put a good intention but it did not lead to the desired outcome for the government.
Hope I made myself clear buddy.
Good Luck.
,Answer:
Explanation:
a. Stockholders' equity December 31, 2017
Assets = Equity + Liabilities
529,000 = Equity + 127,000
Equity = 529,000 - 127,000
= $402,000
b. Stockholders' equity in 2018:
Assets = Equity + Liabilities
(529,000 + 101,000) = Equity + (127,000 + 30,000)
630,000 = Equity + 157,000
Equity = 630,000 - 157,000
= $473,000
Answer:
a. $44,200
b. $44,684
Explanation:
To calculate after-tax costs we just need to deduct the tax saving amount from the pre-tax amount. The tax saving amount can be calculated bt multiplying the pre-tax amount into the tax rate
Requirement A (If she pays the $65,000 in December)
After-tax cost = Pre tax cost - PV of tax saving
After-tax cost = 65,000 - 20,800
After-tax cost = $44,200
working
Tax saving = $65,000 x 32%
Tax saving = $20,800
Requirement B (If she pays the $65,000 in January)
After tax cost = $65,000 - $20,315
After tax cost = $44,684
working
Tax saving = $65,000 x 35%
Tax saving = $22,750
Pv of tax saving = $22,750 x 0.893
Pv of tax saving = $20,316
