Answer:
A. Disagree. Checking accounts represent something that the bank owes to the owner of the account. It is a bank liability.
Explanation:
Given the definitions of liabilities and assets, it is also important to distinguish the <em>point of view</em> when discussing whether a specific item is an asset or liability.
Since a checking account represents money bank users deposit into the bank, that means that the <u>bank owes the money deposited</u> to the bank customer.
Similarly, a car loan is a bank asset. It is an essential bank product representing the money lent to someone. That means <u>bank users owe the bank</u> in that case. Although the bank doesn't possess the loan money after providing someone with a loan, the loan money will be returned to the bank after some time (representing the key asset characteristic).
Answer:
a. $149.00
b. $217.00
Explanation:
Variable Costing
Product Cost under Variable Costing = Variable Manufacturing Costs Only
Total Variable Manufacturing Cost = $610,900
Unit Cost = Total Cost / Units Manufactured
= $610,900 / 4,100 units
= $149.00
Variable Costing
Product Cost under Absorption Costing = Variable Manufacturing Costs + Fixed Manufacturing Costs.
<u>Total Absorption Cost Calculation</u>
Total Variable Manufacturing Cost $610,900
Fixed manufacturing costs $278,800
Total Absorption Cost $889,700
Unit Cost = Total Cost / Units Manufactured
= $889,700 / 4,100 units
= $217.00
Answer:
a. 5.00%
b. 4.50%
c. 4.00%
d. 3.50%
Explanation:
The after tax yield is determined by the formula given below;
Equivalent Taxable Yield = r * (1 - t)
a. when t = 0 then 5% * (1 - 0)
= 5.00%
When t=0, the after tax yield for taxable bond is same as before tax yield and is greater than municipal bond.
b. when t = 10% then 5% * (1 - 10%)
= 4.50%
c. when t = 20% then 5% * (1 - 20%)
= 4.00%
d. when t = 30% then 5% * (1 - 30%)
= 3.50%
