A. property rights are closely linked to the degree with which individuals use their entrepreneurial skills.

A The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is ave

Zepler [3.9K]

Answer:

Gresa Inc.

Comparative Condensed Income Statements for 2017

under FIFO and LIFO.

FIFO LIFO

Sales 1176450 1176450

Cost Of Goods Sold 660,400 657, 200

Gross Profit 516050 539,500

Operating Expense $ 150,000 $ 150,000

Income before Tax $ 366,050 $ 389500

Income Tax (30%) $ 109815 $ 116850

Net Income $ 256235 $272650

Working :

Fifo Cost of Goods Sold= $ 10,000 + $168,000 + $ 150,000+ 156,000 + 176,400= 

Lifo Cost of Goods Sold= $ 224,000 + 156,000+ $ 150,000+127,200

Purchases were made quarterly as follows.

Quarter Units Unit Cost Total Cost

1 70,000 $2.40 $168,000

2 60,000 2.50 150,000

3 60,000 2.60 156,000

4 80,000 2.80 224,000

270,000 $698,000

Inventories Beginning (5,000 units) $10,000

Total net sales (253,000 units) $1,176,450

Ending (22,000 units)

Total cost of goods purchased (270,000 units) 698,000

3 0

3 years ago

A company reports basic earnings per share of $5.10, cash dividends per share of $2.05, and a market price per share of $65.55.

Radda [10]

Answer:

3.13%

Explanation:

The dividend yield refers to the payment by a company to its shareholders for their shareholding divided by current stock price of the company. This is usually expressed as a percentage and can be calculated for this question as follows:

Dividend yield = Dividends per share (DPS) ÷ Market price per share (MPS) = $2.05 ÷ $65.55 = 0.0313, or 3.13%.

6 0

3 years ago

Read 2 more answers

Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal payments, $1,850 in property tax, $840 in mortga

olga55 [171]

Answer:

Mortgage interest of $7,875 and property taxes of $1,850.

Explanation:

A tax deduction can be defined as the total amount of money that one can deduct to lower their tax liability. More tax deductions always implies a reduced tax liability. In dealing with mortgage payments, tax deductions should be considered carefully to determine how much one tax one needs to pay. The following mortgage expenses are considered for deductions;

1. Mortgage interest

A mortgage interest deduction is a deduction that allows homeowners to subtract the interest on the loan they used to pay for the purchase, improvements or building of a home. In our case, Hilda and Hyatt are liable to a deduction of $7,875.

2. Property tax

In general, state and local property taxes are eligible to be deducted from the federal income taxes of a property owner. The only taxes that are deductible are state, local and foreign taxes levied for public welfare. They do not include services like home renovation and trash collection. The federal tax as of 2018 for property tax was capped at a total of $10,000. This means that any property tax value below $10,000 was eligible to a property tax deduction of that amount.

3 0

3 years ago

Esther and Elizabeth are equal partners in the EE Partnership. The partners formed the partnership seven years ago by contributi

Ber [7]

Answer: Esther does not recognize any gain or loss on the distribution and her remaining basis in EE is $15,000

Explanation:

Base on the scenario been described in the question, repayment of liabilities is treated as a cash distribution. Esther's share of the debt reduction is Since this amount is lower than her outside basis ($40,000) she does not recognize a gain or loss.reduces her outside basis by the $25,000, which leaves her $15,000 of outside basis in EE afterthe debt repayment.

8 0

3 years ago

Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value.

Marianna [84]

Answer:

$508.63

Explanation:

For this question, we use the Present value formula that is reflected in the attached spreadsheet. Kindly find it below:

Provided that

Given that,

Future value = $1,000

Rate of interest = 14%

NPER = 15 years

PMT = $1,000 × 6% = $60

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $508.63

3 0

3 years ago