Answer: A. Products were overcosted during the year.
Explanation:
At the budgeted figures of $25,000 fixed overhead costs and the 2,000 units of production, the predetermined fixed overhead rate is:
= 25,000 / 2,000
= $12.50 per unit
However, the company then produces 2,200 units at the same cost of $25,000 making the actual predetermined fixed overhead rate:
= 25,000 / 2,200
= $11.36 per unit
<em>The actual rate is less than the predetermined rate which means that the products had originally be overcosted by being apportioned higher expenses. </em>
Answer:
(a) Brittany loss due to taxes = Basis - fair market value
= $184,000 - $160,000
= $24,000
Therefore, Brittany will have a $24,000 loss that is not deductible.
(b) Tax consequences to Ridge if he later sells the stock for $190,000 are as follows:
- Realized gain = $30,000 and Recognized as a gain for tax payers = $6,000
- Realized and recognized loss = $8,000
- There is no recognized gain for Ridge and unrecognized loss of $10,000. It is permanent lost.
Answer:
current share price = $5.40
so correct option is C. $5.40
Explanation:
given data
dividends paid = 15 years
pay = $6 per share
increase = 4%
to find out
current share price
solution
we know that Value after year 15 will be = ( D15 × Growth rate) ÷ (required return - growth rate) ......................1
put here value
Value after year 15 = 
Value after year 15 = $52
so here current share price will be
current share price = Future dividends × Present value of discounting factor
current share price = 
current share price = $5.40
so correct option is C. $5.40
Answer:
Net Income
Cash basis $10,800
Accrual basis $20,500
Explanation:
Computation of Roma company’s first-year net income under both the cash basis and the accrual basis of accounting will be:
Cash basis Accrual basis
Revenue $39,000 $47,000
Expenses $28,200 $26,500
Net Income $10,800 $20,500
Cash paid $20,950
Add Prepaid cash $7,250
=$28,200
Therefore first-year net income cash basis will e $10,800 and accrual basis will be $20,500
Answer:
Letter A is correct. <u>Routine response behavior.</u>
Explanation:
Routine response behavior is a buying decision making process characterized by the act of a consumer purchasing a product or service that he has previously purchased, ie, it is configured as a usual buying scenario, the consumer already has experience buying certain products. and the purchase decision occurs automatically and routinely.
Generally this buying behavior occurs with non-durable consumer goods, which are those used consistently by the consumer, such as food, medicines and cleaning products.
