Answer:
a. $80,000
Explanation:
In this question we are only concerned about the net income reported by Dodge on its income statement.
First we need to calculate ownership % in 2012 = 15% + 25% = 40%
Net income of 2012 (Gates) = $ 200000
hence Dodge will report net income of 40% of 200000 = $80000
Hence the correct answer is A
Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)
If a company has a high level of relation coordination then the expected employee behavior is good as well. The employees respond to the company is highly satisfactory
Answer and Explanation:
The computation is shown below:
1.
Direct Material Price Variance = Actual material cost - Actual Quantity × Standard Price
For Silver
= $13848 - 577 × 23
= $577 (U)
For Crystal
= $2926 - 7700 × 0.40
= $154 (F)
Direct Material Quantity Variance = (Actual Quantity - Standard Quantity) × Standard Price
For Silver
= (577 - 1530 × 0.40) × 23
= $805 (F)
For Crystal
= (7700 - 1530 × 5) × 0.40
= $20 (U)
2.
Direct Labor Rate Variance = Actual Cost - Actual Hours × Standard Rate
= $36915 - 3210 × 12
= $1605 (F)
And,
Direct Labor efficiency Variance = (Actual hours - Standard hours) × Standard Rate
= (3210 - 1530 × 2) × 12
= $1800 (U)
When a firm can depreciate its capital equipment over a shorter period, it cuts its taxes now.
A capital asset's value dropping is referred to as capital depreciation. To determine the recovery cost incurred on fixed assets over the course of their useful lives, assets are depreciated. When the asset reaches the end of its useful life or you need to sell it, this is used as a sinking fund to replace it. Depreciation lowers the taxable income, which lowers the tax burden. Capital assets are listed as an asset on the balance sheet and are depreciated over the course of their useful lives. Businesses typically have to spread out the costs of capital investments over a number of years in accordance with predetermined depreciation schedules.
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The real exchange rate is 1 dollar = 2 Argentine pesos
The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:
- 1 Dollar is equivalent to 4 Argentine pesos
However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:
- 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.
In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.
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