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JulsSmile [24]
3 years ago
14

In the previous year, a firm failed to record premium amortization of $40,800 and $28,300, respectively, on its bonds payable an

d held to maturity bond investments. These errors affect both income before tax and taxable income. The firm's tax rate is 30%. As a result of this error, net income was:
Business
1 answer:
Snowcat [4.5K]3 years ago
4 0

Answer:

The correct answer is $8,750 ( Understated).

Explanation:

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

we can calculate the net income by using following formula:

Net income = Understated gain - Tax amount

Where, Understated gain = $40,800 - $28,300 = $12,500

So, Tax on $12,500 = $12,500 × 30% = $3,750

By putting the value, we get

Net income = $12,500 - $3,750

= $8,750 ( Understated)

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Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $1.75 a share (i.e., D0 = $1.75). The
VladimirAG [237]

Answer: See explanation

Explanation:

a. What stock price is expected 1 year from now?

This will be calculated as:

= P0 × (1 + g)

where,

P0 = $40

g = growth rate = 7%

= P0 × (1 + g)

= 40 × (1 + 7%)

= 40 × (1 + 0.07)

= 40 × 1.07

= $42.80

b. What is the required rate of return?

This will be:

= (D1 / P0) + g

where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725

= (D1 / P0) + g

= (1.8725 / 40) + 0.07

= 0.1168

= 11.68%

5 0
2 years ago
because the costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV
mario62 [17]

The makers of UAV drones have good reason to sell their drone models to buyers in the Asia- Pacific at lower average website prices than the average website prices charged to buyers in the Europe-Africa region because they incur higher import duties on shipments of UAV drones to buyers in Europe-Africa than they do on each drone shipped to buyers in the Asia-Pacific region.

The costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV drones from Taiwan to Europe-Africa.

The production/assembly costs per drone that drone-makers incur on all UAV drones shipped to the Asia-Pacific region are many dollars higher than production/assembly costs per drone shipped to buyers in the Europe-Africa region.

The administrative costs per UAV drone sold that companies incur on sales to buyers in the Asia- Pacific region are about $10 higher than those incurred on sales to buyers in the Europe- Africa region.

To learn more about  UAV drone here

brainly.com/question/14179661

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8 0
1 year ago
A 30-year 6% semi-annual coupon bond has a tenor of 12 years and a yield to maturity of 7.000%. If the PAR value of the bond is
KATRIN_1 [288]

Answer:

$875.28

Explanation:

We use the Present value formula which is attached in the attachment below:

Provided that  

Future value = $1,000

Rate of interest 7%  ÷ 2 = 3.5%

NPER = 30 years × 2  = 60 years

PMT = ($1,000 × 6%)  ÷ 2 = $30

The formula is shown below:

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

So, after solving this, the present value would be $875.28

Since on semi annual basis, the interest rate is half and the duration is doubled. The same is shown  above

3 0
3 years ago
Zan Azlett and Angela Zesiger have joined forces to start​ A&Z Lettuce​ Products, a processor of packaged shredded lettuce f
krek1111 [17]

Answer:

<u>a. The​ break-even quantity in units for manual process= 26,786 bags</u>

<u>b. $80,358</u>

<u>c. 36,000 bags</u>

<u>d. $108,000</u>

<u>e. $53,000</u>

<u>f. $58,000</u>

<u> g. 26,786 bags</u>

<u>h. mechanized process, manual process.</u>

Explanation:

a. Using the formula

Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)

= $ 37, 500÷$3- $ 1.60

=26,786

b. Using the formula

Break-Even Point (sales dollars) = Fixed Costs ÷ Contribution Margin

where Contribution Margin = Price of Product – Variable Costs

=37, 500÷($3- $ 1.60)

=26,786 x $3= $80,358

c. Using the formula

Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)

= $ 72,000÷$3- $1

=36,000 bags

d. Using the formula

Fixed Costs ÷ Contribution Margin

where Contribution Margin = Price of Product – Variable Costs

= $ 72,000÷($3- $1)

=36,000 bags x $3= $108,000

e. 65,000 bags x $3-$1.60= $91,000-$37,500 (manual process fixed cost)

= $53,000

f. 65,000 bags x $3-$1= $130,000-$72,000 (manual process fixed cost)

= $58,000

h. The mechanized process option should be chosen as this would bring more returns if the demand exceeds the point of​ indifference and the <u>manual process if the demand stays below the point of​ indifference.</u>

8 0
3 years ago
How do you put an inequality into interval and set notation?
Marta_Voda [28]
It does take a little bit of work.  If you want 0<x<2, then in interval notation it is x\in(0,2).  [] means that the numbers you write there are included.  You can also have sets if you use union, for instance 0<x<2 and 4<x<5 would be written as x\in(0,2)\union(4,5).  Please mark Brainliest!!!
5 0
3 years ago
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