Subscription services from firms such as Nielsen provide marketing researchers with a good source of ___

Smith Company reported $350,000 in book income before income tax during 20X1, its first year of operation. The tax depreciation

Sloan [31]

Answer:

$73,500

Explanation:

Income tax payable = Book income before income tax*Tax rate

Income tax payable = $350,000*21%

Income tax payable = $73,500

Therefore, the amount of income tax payable that Smith should report in its December 31, 20X1, balance sheet is $73,500

7 0

3 years ago

Crane Corporation incurred the following costs while manufacturing its product. Materials used in product $121,000 Advertising e

Vera_Pavlovna [14]

Answer:

Cost of goods manufactured = $328,400

Cost of goods sold = $343,700

Explanation:

The computation of cost of goods manufactured and cost of goods sold is shown below:-

(a) Cost of goods manufactured = Direct materials used + Direct labor + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process 1 Jan - Work-in-process, 31 Dec

= $121,000 + $111,000 + $61,000 + $24,000 + $15,000 + $13,000 - $16,600

= $328,400

(b) Cost of goods sold = Finished goods, 1 Jan + Cost of goods manufactured - Finished goods, 31 Dec

= $61,000 + $328,400 - $45,700

= $343,700

8 0

3 years ago

Read 2 more answers

The Modigliani and Miller (MM) articles implicitly assumed that bankruptcy did not exist. That led to the development of the "tr

yanalaym [24]

Answer:

True

Explanation:

The trade off theory states that capital structure decisions involve a trade off between costs and benefits of debt financing. Originally MM argued that a firm's capital structure should be 100% debt, but after accounting for bankruptcy costs, then the firm's capital structure should be less than 100% debt. Companies must substitute debt for equity at different levels (or vice versa if needed) until they reach a balance where the firm's value is maximized.

6 0

4 years ago

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,200, $11,200, and

Serggg [28]

Answer:

$27,965.4393

Explanation:

Given:

Cash flow for first year (C1) = $6,200

Cash flow for second year (C2) = 116,200

Cash flow for third year (C3) = $17,400

Rate of return = 10% = 10/100 = 0.1

Computation of total price :

Total Price = $\frac{C1}{(1+r)^1} +\frac{C2}{(1+r)^2} +\frac{C3}{(1+r)^3}$

$Total\ price = \frac{6,200}{(1+0.1)^1} +\frac{11,200}{(1+0.1)^2} +\frac{17,400}{(1+0.1)^3}\\\\Total\ price = \frac{6,200}{(1.1)^1} +\frac{11,200}{(1.1)^2} +\frac{17,400}{(1.1)^3}\\\\Total\ price = \frac{6,200}{(1.1)} +\frac{11,200}{(1.21)} +\frac{17,400}{(1.331)}\\\\Total\ price = 5,636.36364 + 9256.19835 +13,072.8775\\\\Total\ price = 27,965.4393\\\\$

Therefore, Marko Inc. will pay $27,965.4393

8 0

3 years ago

The price of a European call that expires in six months and has a strike price of $30 is $2. The underlying stock price is $29,

erica [24]

Answer:

The price of put option is $2.51

Explanation:

The relation between the European Put option and Call option is called the Put-Call parity. Put-Call parity will be employed to solve the question

According to Put-Call parity, P = c - Sо + Ke^(-n) + D. Where P=Put Option price, C=Value of one European call option share. Sо = Underlying stock price, D=Dividend, r=risk free rate, t = maturity period

Value of one European call option share = $2

Underlying stock price = $29

Dividend = $0.50

Risk free rate = 10%

Maturity period = 6 month & 2 month, 5 month when expecting dividend

P = c - Sо + Ke^(-n) + D

P = $2 - $29 + [$30 * e^[-0.10*(6/12)] + [$0.50*e^(-0.10*(2/12) + $0.50*e^(-0.10*(5/12)]

P = $2 - $29+($30*0.951229) + ($0.50*0.983471 + $0.50*0.959189)

P = -$27 + $28.5369 + $0.4917 + $0.4796

P = $2.5082

P = $2.51

Therefore, the price of put option is $2.51

8 0

3 years ago

Subscription services from firms such as Nielsen provide marketing researchers with a good source of ____ data.