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monitta
3 years ago
7

9-10. Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 containe

d the following errors: 2014 2015 Ending inventory $25,000 overstatement $40,000 understatement Depreciation expense 10,000 understatement 20,000 overstatement 9. Assume that the 2014 errors were not corrected and that no errors occurred in 2013. By what amount will 2014 income before income taxes be overstated or understated? a. $35,000 overstatement b. $15,000 overstatement c. $35,000 understatement d. $15,000 understatement
Business
1 answer:
IceJOKER [234]3 years ago
5 0

Answer:

Consider the following explanation

Explanation:

If these error are nit corrected, the income before taxes be overstated by $ 35,000 .

As, Overstatement of Ending Inventory will affect the gross profit (Increase) by $ 25,000 and then understatement of Depreciation will further increase Net Profit by $ 10,000

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You have had $5,500 in a Roth IRA account for 3 years earning 1.2% annual interest. During those 3 years, the rate of inflation
erma4kov [3.2K]

Answer:

Loss in purchasing power =$(96.67)

Explanation:

To determine the change in purchasing power, we will compare the value of the IRA after 3 years to its purchasing power in term the prices there years ago.

The value of 5,500 in 3 years time = 5,500 × 1.012^3 = 5700.385

The purchasing power of 57,000.38 in term's of the price 3 years ago

=5700.385504 × 1/(1.018^3)

= $5403.32

Change in purchasing power =  $5403.32 -  $5,500= $(96.67)

Loss in purchasing power =$(96.67)

8 0
4 years ago
A portfolio manager believes interest rates will drop and decides to sell short-duration bonds and buy long-duration bonds. This
Maurinko [17]

Answer:

C) a rate anticipation

Explanation:

A rate anticipation swap can be regarded as a bond trading strategy that is used whereby there is exchange of exchanges of bond portfolio by trader in anticipation of expected interest rate movements.

Rate anticipation swap can be regarded as trading strategy involving

bonds swapping on the basis of varying maturity dates. this bond swapping are done according to their present period as well as their movement rate prediction.

8 0
3 years ago
If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest r
Stella [2.4K]

Answer:

A. buy; rise; fall

Explanation:

As for the provided information, we know,

As the supply of money exceeds the demand people will have more investing power, accordingly people will <u><em>buy</em></u> more bonds,

as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will <em><u>rise,</u></em>

and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will <em><u>fall.</u></em>

5 0
3 years ago
Kunkel, applebaum, and nelson focus on which type of financial support for caregivers?
Alex_Xolod [135]
They focus on direct payment for services provided for caregivers. This money can be used to procurement of any service or services that encounter the person's measured needs. As the money given to the person is specified in lieu of the local specialist providing the care, the money rests public money have its place to the local government who creates the expenditures.
4 0
3 years ago
The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,00
Alex_Xolod [135]

Answer:$722,000

Explanation:

The over applied overhead of $8000 is deducted from cost of goods sold of $730,000.

3 0
3 years ago
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