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3 years ago

What measures the change in prices of a basket of goods and services in a given year?

Business

2 answers:

Bogdan [553]3 years ago

8 0

Its D or inflation.

Ive took the test and tried all the answers

Strike441 [17]3 years ago

3 0

<span>The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index. A general increase in the cost of goods and services which also measures the change in prices of a basket of goods and services in a given year is inflation.</span>

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Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi

irina1246 [14]

Answer:

Yes, it will affect it.

Explanation:

The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.

The three criteria or tiers that determines how much to deduct as DRD are as follows:

1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.

2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.

3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.

Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.

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3 years ago

The TrunkLine Company will earn $60 in one year if it does well. The debtholders are promised payments of $35 in one year if the

Yuliya22 [10]

Answer:

The answer is a. $25.00

Explanation:

The bondholder's cash flow in one-year time from holding a TrunkLine's bond is calculated as:

(The possibility of TrunkLine doing well x Repayment receipt in case TrunkLine doing well) + (The possibility of TrunkLine doing poorly x Repayment receipt in case TrunkLine doing poorly) = (0.5 x 35) + (0.5 x 20) = $27.50.

The current price bondholders are willing to pay for a bond is equal to the present value of a bond's cash flow in one-year time, discounted at the interest rate on the bond 10% which is calculated as below:

27.50 / (1+10%)^1 = $25

Thus, the correct choice is a. $25.00

6 0

3 years ago

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cos

kiruha [24]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively.

Job 352A

Direct material= $32,000

Labor costs= $45,000

First, we need to calculate the predetermined manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 800,000/1,000,000= $0.8 per direct labor dollar

Now, we can calculate the total cost:

Total cost= direct material + direct labor + allocated MOH

Total cost= 32,000 + 45,000 + (0.8*45,000)= $113,000

6 0

3 years ago

Amazon Services, Inc. invests its excess cash in Nile Technologies, Inc. and acquires 6,000 shares for $62.00 per share. Amazon

sergey [27]

Answer:

Option B. Equity Investments is debited for $372,000

Explanation:

The initial journal entry to record the equity Investment will be treated same as purchase of an asset, which means the equity Investment account will be debited with the amount paid and the cash account will be credited with an equal balance.

Dr Equity Investments (6,000 * $62 per share) $372,000

Cr Cash Account $372,000

3 0

3 years ago

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th

Sergeu [11.5K]

Answer:

$51.00

Explanation:

Calaulation of Baka Corporation predetermined overhead rate for the year.

Formula for predetermined overhead rate:

Predetermined overhead rate=Estimated overhead÷Estimated direct labor hours

Where,

Estimated overhead= 239,700

Estimated direct labor hours= 4,700

Let plug in the formula

(239,700/4700)

=$51 per direct labor hour

Therefore the predetermined overhead rate for the year was closest to $51 per direct labor hour.

3 0

3 years ago