The investment option that the client should go with to pay the child's college expenses is a. treasury bills.
<h3 /><h3>Why should treasury bills be used?</h3>
Treasury bills have a short term lifespan of less than a year which means that they mature in a short period of time.
The investor can invest in treasury bills and be able to access them by the time the child starts in school the next year.
Options for the question are:
a. treasury bills
b. intermediate-term bonds maturing in 5 years
c. long-term bonds of blue chip companies maturing n 10-30 years
d. a mutual fund based on the S&P 500 index
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Answer:
Allocated MOH= $99,960
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 200,000 / 336,000
Predetermined manufacturing overhead rate= $0.595 per direct labor dollar
<u>Now, we can allocate overhead to Product 3:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.595*168,000
Allocated MOH= $99,960
Answer and Explanation:
According to the scenario, the explanation of the given situation are as follow:-
1. Ability of Contract : According to the law except of some contract a minor can enter into any contract. Mr. kalen is a seventeen year old minor and he can entered the rent contract because it is not banned by the government for the minor.
2. This is a voidable contract because Mr. Kalen is a minor and he not legally capable to entering in agreement. In voidable contract one party has a right to discontinue the contract it is depends on him that he want to void it or not. If he wants to void it he cannot be bound to go further with this contract. If a minor wants he can rightfully dis-affirm any contract in which he enters.
According to the analysis, under this circumstance, Mr. kalen is not bound to the contract because he is still minor and he shows his disaffirmance of contract by returning the key to landlord. So he is not liable for the balance of the payments due under the lease.
Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality.