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Andrej [43]
3 years ago
10

The following information is related to the pension plan of Sandhill, Inc. for 2021.

Business
1 answer:
Rudiy273 years ago
8 0

Answer:

The correct answer is option (A).

Explanation:

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

Pension Expense =  Service Cost + Interest on Projected Benefit Obligation + Amortization of prior service cost due to increase in benefits - Expected return on plan assets - Amortization of net gain

By putting the following value in the formula, we get

Pension Expense = $2,100,000 + $805,000 + $380,000 - $532,000 - $205,000

= $2,548,000

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Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of
Amanda [17]

Answer:

0.75%

Explanation:

In the first place, the weighted average cost of capital is the average cost of finance a firm incurs on aggregate on all its sources of finance a shown by the formula below:

WACC=(weight of equity*cost of equity)+(weight of preferred stock*cost of preferred stock)+(weight of debt*before-tax cost of debt )*(1-tax rate)

Note only debt has tax impact deduction

tax rate=40%

WACC using retained earnings:

WACC=(36%*14.7%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)

WACC=9.89%

WACC using new common equity:

cost of new common equity=16.8%

WACC=(36%*16.8%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)

WACC=10.64%

increase in WACC=10.64%-9.89%

increase in WACC=0.75%

6 0
3 years ago
The net income reported on the income statement for the current year was $226000. Depreciation recorded on plant assets was $351
Snezhnost [94]

Cash collections from clients at some point of the duration =beginning money owed receivable +internet credit income-ending accounts receivable = 1128000

= 125000+1216000-213000

= 1128000

Surely put, cash collection is the process of accumulating debts owed in your organization. these may be bills owed with the aid of a character or another business and might consist of each cutting-edge bill with an awesome balance and beyond-due money owed. you may additionally hear this referred to as payment collections.

Cash collection additionally referred to as charge collection, is a treasury characteristic that describes the method whereby an enterprise recovers coins from different groups (or individuals) to whom it has previously issued an invoice. the important thing objective of the coins series is to get invoices paid on their due date.

Cash collections typically come from one in every of two locations: coins income and collections on bills receivable. Use historical information and trends to estimate collections for every class and calculate the sum of the figures to locate general budgeted cash collections.

Learn more about Cash collections here: brainly.com/question/16346203

#SPJ4

4 0
2 years ago
The facility is implementing a new information system that will require conversion of healthcare data. the conversion is:
Gnoma [55]
Required when data is stored differently or changes are being made to data collection
3 0
3 years ago
After the purchase of a new car, Johanna Morales had the feeling that she made an awful mistake in terms of paying too much for
alukav5142 [94]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is a concept of social psychology and is described as the discomfort which is felt by a person who is having conflict in values and ideas. The people in this state feel guilt, embarrassment and anger. There is a motivational drive in humans to reduce the dissonance.

Leon Festinger developed theory of cognitive dissonance to predict and explain the peoples reaction to various situations. This theory states that people have prejudice  to get  agreement between what they expect and the reality.

8 0
4 years ago
Assume that total costs assigned to the setup activity cost pool in June are $60,000 and 50 setups were completed in June. Furth
Zolol [24]

Answer:

Allocated cost= $14,400

Explanation:

<u>First, we need to calculate the allocation rate for setup:</u>

<u></u>

Cost allocation rate= total estimated costs for the period/ total amount of allocation base

Cost allocation rate= 60,000 / 50

Cost allocation rate= $1,200 per setup

<u>Now, we can allocate setup cost to G10:</u>

Allocated cost= 1,200*12

Allocated cost= $14,400

6 0
3 years ago
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