A business incurs a blank when expenses are higher then revenue

In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20

Anon25 [30]

Answer:

The journal entry would be as follows:

December 31, 2020 Debit Credit

Retained Earnings $9,400,000

Inventory $9,400,000

Explanation:

In order to prepare the journal entry to record the adjustment, we would have to calculate the amount of inventory with the following formula:

Amount of inventory=December 31, 2020, CPS’s inventories (FIFO)-31, 2020, CPS’s inventories (Average Cost)

=$38 million-$28.6 million

=$9.4 millions

Therefore, the journal entry would be as follows:

December 31, 2020 Debit Credit

Retained Earnings $9,400,000

Inventory $9,400,000

7 0

3 years ago

6. Taxpayer ("T") a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in

pochemuha

Answer:

In the year 2020 --- Not taxable Hence -Nil

In the year 2050----Taxable. Hence $5000

Explanation:

Assumed that the tax payer purchased the annuity from Tax paid Income'.

In this case the tax payers income of $5000 is partly taxable . That is the percentage of the payment that's considered a return on your initial investment will not be taxable. the rest, which is your gain on the investment, will be taxed. In this case for the first twenty years($100000/$5000) =20 years will not be taxable. Hence

In the year 2020 --- Not taxable Hence -Nil

In the year 2050----Taxable. Hence $5000

5 0

2 years ago

The interest rate does not affect the intertemporal budget constraint.<br> a. True<br> b. False

Kruka [31]

Answer:

False

Explanation:

The correct answer is false because the interest rate does affect the intertemporal budget constraint.

A higher interest rate, will cause the budget line to pivot upwards while a lower rate will make the budget line to pivot downward.

The intertemporal budget constraint can used to show a decision on how to save. It refers to the constraint which an individual encounters when making choices for the present and for the future. It reflects a consumer's decision on the amount to consume in the present and the amount to save in the future.

6 0

3 years ago

Red Sun Rising just paid a dividend of $2.58 per share. The company said that it will increase the dividend by 20 percent and 15

vladimir1956 [14]

Assuming the required return is 12 percent, the stock price today is $40.61.

Given:

Dividend=$2.58 per share

Increase in Dividend=20% and 15%

Number of year=2 years

Increase in Annual Dividend=3.6%

Required return=12%

P2=Stock price today

Now let calculate the stock price today

P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2

P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2

P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]

P2=$2.7643+$2.838329+($43.91155/1.2544)

P2=$2.7643+$2.838329+$35.0060

P2=$40.61

Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.

Learn more here:

brainly.com/question/24314972

7 0

2 years ago

The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future nee

Yuliya22 [10]

Answer:

We have the comparison below

Explanation:

1 2 3

Expenses for the year 20000 27000 34000

PVIF at 12% 0.89286 0.79719 0.71178

PV of expenses 17857 21524 24201

Cumulative PV of expenses 17857 39381 63582

EOY MV -1000 -1750 -2500

PV of MV -893 -1395 -1779

Total PW (4000+ PV of expenses - PV of MV) 22750 44776 69361

P/A 0.89286 1.69005 2.40183

EUAC 25480 26494 28879

3 0

3 years ago