Answer:
A debit to Unearned Rent and a credit to Rent Revenue for $3,675.
Explanation:
The year end adjusting entry is as follows
Unearned rent Dr $3,675
To Rent earned $3,675
(Being the unearned rent is recorded)
The computation is shown below:
= Monthly rate × number of months
= $1,225 × 3 months
= $3,675
The three months is calculated from October 1 to December 31 and the same is to be considered
Answer:
a. $11
b. $22
c. Range is $11 to $22
Explanation:
Part a
The lowest acceptable (minimum) transfer price is the price that is acceptable to the transferring division and out of a range of prices, it could be that which would be the best for the company.
Minimum Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
where,
Variable Costs per unit = $11
Internal Savings = $0
Opportunity Cost = $0
therefore,
Minimum Transfer Price = $11
Part b
The highest acceptable(maximum) transfer price is the maximum price that causes the receiving or buying division to breakeven. It could also be the price at which they could purchase the product in the market at arms length position.
therefore,
Maximum Transfer Price = $22
Part c
The best range of acceptable transfer prices must encourage goal congruence, must facilitate measurement of performance and divisions should function autonomously.
therefore,
The best range of acceptable transfer prices is within the Minimum and Maximum Transfer Price.
Answer:
$0.60
Explanation:
Missing Information: Table is missing, hence, attached with the answer.
Variable cost = Total utilities cost - Fixed cost
= $2,600 - $2,000
= $600
Variable rate per unit = Variable cost ÷ No. of units produced
= $600 ÷ 1000
= 0.6
Thus, variable rate per unit of output for utilities cost is $0.60.
Answer: $380 million
Explanation:
To solve the question, first we have to calculate the depreciation that'll be reported for each year and this will be:
= $1140 million/3 years
= $380 million
Then, the deferred tax liability related to the excess depreciation will be:
= ($380 million × 30%) + ($380 million ×
35%) + ($380 million × 35%)
= $114m + $133m + $133m
= $380 million
Answer:
WHOLE LIFE: This policy covers the person for his entire life and then pays a cash revenue that is guaranted for the investments made during the life of the owner of the policy. For this benefits to be obtained the person must pay a fixed high premium for it.
VARIABLE LIFE: This policy covers the person for the same period as the whole life insurance but the premium is not fixed as the cash revenue for investments is not guaranted.
TERM LIFE: The term life insurance is set up for an especific period the premiums are the lowest and persons won't collect any cash payments for revenues made out of investments at the end of the coverage of the policy.
