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2 years ago

If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the

1 answer:

3 0

<span>If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the prices for the firm's product will be lower than the prices that have been set in the present. In the present case as the supply is increased, the prices are higher as the demand is higher. Then at later point of time when the supply is decreased, then demand also decreased, then the prices are likely to come down.</span>

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Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and ne

Shtirlitz [24]

Answer:

Star Corp.

Star Corp.'s total deductible business expenses for the year is:

= $1,952,000.

Explanation:

Ordinary and Necessary Expenses incurred in 2020:

Office rent: $50,000

CEO compensation: $1,500,000

Salary paid to janitor: $250,000

Business meals: $30,000 (100% of the amount paid)

Client entertainment: $100,000 (100% of the amount paid)

Political contribution/lobbying: $5,000

Advertising: $70,000

Taxes & licenses (state, local &

payroll tax; not fed. inc. tax): $30,000

Life insurance policy on CEO

- premiums: $12,000

Federal income taxes: $250,000

Total expenses incurred $2,297,000

Total Deductible Business Expenses for the year:

Office rent: $50,000

CEO compensation: $1,500,000

Salary paid to janitor: $20,000

Business meals: $15,000 (50% of $30,000)

Client entertainment: $0 (0% of $100,000)

Political contribution/lobbying: $5,000

Advertising: $70,000

Taxes & licenses (state, local &

payroll tax; not fed. inc. tax): $30,000

Life insurance policy on CEO

- premiums: $12,000

Federal income taxes: $250,000

Total deductible expense = $1,952,000

5 0

2 years ago

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and polit

balu736 [363]

<span>Foreign firms should seek this sorts of alliances, because making them is a good way to obtain knowledge of local markets; contrast this to a foreign firm attempting to start up a branch on their own, perhaps in the form of a greenfield venture. They would potentially have to figure out local market conditions from scratch, whereas a local company would potentially have years of successful experience and knowledge already at their fingertips.</span>

8 0

3 years ago

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead in

scoundrel [369]

Answer:

Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000

Explanation:

Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

Over applied overhead = Applied overhead - Actual overhead

= 42,000,000 - 40,300,00 = 1,700,000

Over applied overhead = $ 1,700,000

The adjustment required is to reduce the cost of gods sold by the amount of over-applied overhead because the cost of goods sold figure is would have over charged.

Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000 because net income and cost of Goods Sold are inversely related.

4 0

2 years ago

Suppose that in 2011, per-person GDP in Singapore was $53,591, and in Egypt, it was $5,547, as measured in 2005 purchasing power

Lyrx [107]

Answer:

a. There are significant differences in incomes between high- and low-income countries.

Explanation:

Data provided in the question

Per person GDP in Singapore = $53,591

Per person GDP in Egypt = $5,547

Based on the above information

As we can see that the level of income in Singapore is higher than Egypt also when there is an important difference in the high income and low income countries the same is shown accurately

hence, the correct option is a.

5 0

2 years ago

When the goods are sold, their costs are transferred from work in process to finished goods.

lara31 [8.8K]

The statement is false. When goods are sold, their cost are transferred from finished goods to sold items.

5 0

3 years ago