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nekit [7.7K]
3 years ago
7

In January, 20XX a customer buys 100 shares of ABC stock at $50 per share and pays a $2 commission per share. The customer recei

ves $2 in cash dividends during the year. The customer's cost basis in the stock is:
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

$ 52

Explanation:

Given data:

Price of the stock = $ 50

Commission per share = $ 2

Dividends received  = $ 2

Now,

the dividends received is not the part of the stock's cost basis, but it is included in the taxable income for the year.

Therefore,

The customer's cost basis in the stock

= Price  of the stock + commission per share

or

= $ 50 + $ 2

or

customer's cost basis in the stock = $ 52

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A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known
Damm [24]

Answer:

The correct answer is letter "B": investment center.

Explanation:

Investment centers are units within a firm that generate their own revenue, reporting Financial Statements and Income Statements. Those benefits are eventually used in the diverse financing activities necessary for the corporation's processes. A typical example of an investment center is a department store of an entity.

5 0
3 years ago
Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances at the beginning and end
Jet001 [13]

Answer:

<u>a schedule of cost of goods manufactured</u>

Direct Raw materials                                    $281,000

Direct Labor                                                  $377,000

Indirect Raw materials                                  $26,000

Indirect Labor                                                $96,000

Factory utility costs:                                       $10,000

Depreciation - factory operations               $120,000

Add Opening Work In Process                     $27,000

Less Closing Work In Process                       ($9,000)

cost of goods manufactured                        $928,000

Under Recovery = $14,000

Explanation:

a. Prepare a schedule of cost of goods manufactured.

Raw Materials Used in Manufacturing = $14,000+$315,000-$22,000

                                                               = $307,000

<u>a schedule of cost of goods manufactured</u>

Direct Raw materials                                    $281,000

Direct Labor                                                  $377,000

Indirect Raw materials                                  $26,000

Indirect Labor                                                $96,000

Factory utility costs:                                       $10,000

Depreciation - factory operations               $120,000

Add Opening Work In Process                     $27,000

Less Closing Work In Process                       ($9,000)

cost of goods manufactured                        $928,000

b. Was the manufacturing overhead under- or overapplied

Factory Overheads Applied = Predetermined Rate × Actual Activity

Predetermined Rate = Budgeted Overheads/ Budgeted Activity

                                  = $231,000/33,000 machine hours

                                  =$7.00 per machine hour

Factory Overheads Applied = $7.00 × 34,000 machine hours

                                              = $238,000

<u>Actual Overheads </u>

Indirect Raw materials                                  $26,000

Indirect Labor                                                $96,000

Factory utility costs:                                       $10,000

Depreciation - factory operations               $120,000

Total                                                              $252,000

Actual Overheads $252,000 > Factory Overheads Applied $238,000

Under Recovery = $14,000

5 0
3 years ago
Which three things do creditors consider to be most important when judging a persons creditworthiness to buy a house or car?
iren2701 [21]
Creditors consider character, collateral and, capacity to be most important when judging a persons creditworthiness to buy a house or car. 

Character - who you are as a person, honest, true, based on reports you are able and make payments on time.

Capacity - you're ability to make the payments and understand how to.

Collateral - what you own that they could take in a form of "payment" if you don't repay your loan.
4 0
3 years ago
Pronghorn Mining Company purchased land on February 1, 2020, at a cost of $856,800. It estimated that a total of 53,100 tons of
vitfil [10]

Answer:

A.20per ton

B.141,600

C.389,400

Explanation:

A.

($856,800+$97,200-$108,000+$216,000)/53,100 tons

=$1,062,000/53,100

= 20per ton

(b)

Resources removed totaled 26,550 tons

Less company sold 19,470 tons.

Balance 7,080 tons

Hence

Inventory 20*7,080

=141,600

(c)

20* 19,470 tons

=389,400

4 0
3 years ago
In case of an emergency, once you or someone already on the scene has contacted 9-1-1, the next thing to do is: A) Move them to
Lostsunrise [7]
D check for a heartbeat
4 0
3 years ago
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