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3 years ago

Problem 10-3A On January 1, 2017, Evers Company purchased the following two machines for use in its production process.

Business

1 answer:

timofeeve [1]3 years ago

7 0

Answer:

Please see the solution below:

Explanation:

Machine A:

(i) Total Machine A Cost 

Purchase Price = $37,500

Sales Tax = $3,600

Shipping Cost = $100

Insurance during shipping = $50

Installation and Testing Cost = $120

Total Machine A cost = $41,370

(ii) Depreciation

Recorded Cost = $41,370

Less: Salvage Value = $5,950

Useful Life = 5 years

Straight Line Method is used to find depreciation per yer will be:

Depreciation = $7,084

(1) The Journal Entry to record purchase of equipment (Machine A)

January 1, 2017

Dr. Equipment $41,370

Cr. Cash $41,370

(2) The Journal Entry to record annual depreciation (Machine A)

December 3, 2017

Dr. Depreciation $7,084

Cr. Accumulated Depreciation - Equipment $7,084

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Suppose that the bankruptcy law firm had previously loaned $20,000 to Henry Anderson. The law firm filed a financing statement s

pantera1 [17]

Answer: This loan would would have priority over the other unsecured claims in this bankruptcy case.

Explanation:

Since the trucks are secured collateral the loan is a secure loan. It will be the priority in the bankruptcy case since the other claims were unsecured. The law firm would have a right to the trucks since he owed them 20,000$ and put them up as collateral.

Everything that was an unsecured loan does not have anything to take from and will be a loss for the other companies who filed against Henry Anderson.

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3 years ago

Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to

timofeeve [1]

Answer:

substitution and income effects will counteract each other totally

Explanation:

A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.

The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.

A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.

From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.

The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.

Cheers.

8 0

3 years ago

The first of two major components of developing a marketing strategy is to _______. a. select a target market b. determine a seg

Brrunno [24]

Answer:The first of two major components of developing a marketing strategy is to select a target market.

Explanation: After determining business products and services the business needs to identify the target market. Identifying the target market is the major step in developing a marketing strategy.

Steps to select a target market

Target market is actually those customers whom we want to sell our products.Concentrating on target market will make it easier to sell our products.
Customers can be targeted on the basis of age,gender,income,occupation,educational level.
Look at the competition that exist .Identify those areas that have been overlooked by our competitors.
If business is already existing than identify those products and services which are bought by current customers and the benefits that they are getting from it.
Finally target those customers who actually need your products and services.

5 0

3 years ago

The current risk-free rate of return in the economy is 1.5%. In addition, the market rate of return is currently 6%. Given that

ludmilkaskok [199]

Answer:

The company’s systemic risk level (beta coefficient) is 2.44%

Explanation:

According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)

Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)

= (12.5% - 1.5%)/(6% - 1.5%)

=2.44 %

Therefore, The company’s systemic risk level (beta coefficient) is 2.44%

Systematic risk is the risk which affects all the stocks of the economy. It cannot be diversified away. Example interest rate and inflation in the economy. Beta represents systematic risk of the company.

7 0

3 years ago

Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following

kumpel [21]

Answer: LAND 3.227,680

BUILDING 806,920

LAND IMPROVEM 134,000

Explanation:

Land 4 0.8 $ 3.227,680

Building 1 0.2 $ 806,920

5 $ 4.034,600

Land Improvement

Parking Lot $ 88,000

Lanscaping $ 46,000

Total $ 134,000

Computation Of Cost Of Land And Building

Purchase Price $ 4.000,000

Add:

Title Insurance Cost $ 22,000

Legal Fees $ 8,000

State Transfer Fees $ 4,600

Demolition of old building $ 310,000

Land Clearing Expenses $ 85,000

Less: Salvage Material $ -9,000

Total Cost Of Land $ 4.420,600

6 0

2 years ago