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TEA [102]
3 years ago
5

Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation

expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%. What was the impact of the error on Maker’s financial statements for the prior period? Multiple Choice Understatement of depreciation expense of $25,000. Overstatement of net income of $16,250. Understatement of accumulated depreciation of $25,000. Overstatement of accumulated depreciation of $25,000.
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%.

We need to calculate two different impacts:

Accumulated depreciation= actual depreciation - original depreciation

Accumulated depreciation= 50,000 - 75,000= 25,000 overstated

Now, the effect on income:

Savings in tax= 25,000*0.35= $8,750

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Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during Ma
Salsk061 [2.6K]

Answer:

The correct answer is $473 (Unfavorable).

Explanation:

According to the scenario, the given data are as follows:

Actual overhead = $11,183

Budgeted Overhead = $10,710

So, we can calculate the controllable variance by using following formula:

Controllable variance  = Actual overhead - Budgeted overhead

By putting the value, we get

Controllable variance  = $11,183 - $10,710

= $473 ( Positive shows unfavorable)

= $473 (unfavorable)

3 0
3 years ago
If the absolute value of the price elasticity of demand is greater than 1:
FrozenT [24]

Answer:

b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.

Explanation:

Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:

E_{D} = \frac{dQ}{Q}{\frac{P}{dP} =

= % Change in Quantity Demanded / % Change in Price

So when absolute value E_{D}  is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.

<u>Note</u>: Whether the percentage change in quantity demanded will be just a little or very much larger than percentage change in price will depend on how much E_{D} is larger than 1. But b is the still the best answer among the options.

7 0
3 years ago
Although it does not explicitly endorse traditional gender roles, which sociological perspective implies that dividing tasks bet
Licemer1 [7]

The functionalist perspective is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.

<h3>What is a functionalist perspective?</h3>

This refers to the social view that our society is a relatively stable and orderly system composed of interdependent and interrelated parts

The key points about functionalist perspective are:

  • It view social change as a strain on the system
  • It attempts to explain social stability.

Hence, because the Functionalists believe that society is held together by social consensus where members of the society agree upon and work together to achieve, then, it is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.

Read more about functionalist perspective

brainly.com/question/5963935

#SPJ1

3 0
2 years ago
Money is neutral in:___________
babunello [35]

Answer:

C

Explanation:

Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.

Nominal variables include price, wages and exchange rate

real variables include employment and real GDP

Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.

Money is neutral only in the long run

8 0
2 years ago
Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increas
8_murik_8 [283]

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3

8 0
3 years ago
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