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Reil [10]
3 years ago
15

Cullumber Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method

prior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract $395000 $267000 $139000 Percentage-of-completion 695000 331000 215000 What amount will be debited to Construction in Process account, to record the change at beginning of 2021?
Business
1 answer:
slavikrds [6]3 years ago
7 0

Answer:

$217,800

Explanation:

1.)Income as per new method (695,000 + 331,000) $1,025,000

Less Actual reported income until 2021 (395,000 + 267,000 ) $662,000

Balance $363,000

Hence:

40%*$363,000

=$145,200

$363,000 -145,200

=$217,800

Therefore amount will be debited to Construction in Process account, to record the change at beginning of 2021 will be $217,800

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A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall transportation costs but also creates new forms o
Mariulka [41]

Answer:

A) horizontal

Explanation:

Horizontal channel conflicts  occur when members of the same level of marketing channels have disputes or disagreements regarding the sales strategies for one or more product lines.

In this case, Amazon and Target are both retailers, and since Target felt that P&G was unfairly helping Amazon, they reacted by changing their marketing strategies for P&G's products. The conflict here is between Amazon and Target who are both in the same level of marketing channels.

3 0
3 years ago
5) If workers demand and receive higher real wages (a successful wage push), the cost of production ________ and the short-run a
luda_lava [24]

Answer:

The answer is C.

Explanation:

If workers demand and receive higher real wages the cost of production will rise. This is because workers(labor) is an input of production. The wages is the reward for the direct labor for work done. So increase in wages lead to an increase cost of production.

Due to this, the short-run aggregate supply curve shifts leftward i.e reduces the market supply because producers will produce less at a high cost of production and produce more at a lower cost of production.

6 0
3 years ago
A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:
vivado [14]

Answer: 39%

Explanation:

From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.

To calculate its profit margin, we have to divide the net income by the net sales. This will be:

= 7605/19500

= 0.39

= 39%

3 0
3 years ago
ABC is a Medicare Advantage (MA) plan sponsor. It would like to use its enrollees’ information to market non-health related prod
raketka [301]

Answer is given below

Explanation:

  • The Medical insurance company provided all consent knowledge to the patient or beneficiary. It should be well defined so that it can dispel all the doubts of the beneficiary. Must have a valid registration page.
  • The beneficiary should give all the information related to the company.  and the registration page should ask for all the information needed for a future claim. There should be a proper definition of coverage of illnesses and risks so that the beneficiary has no doubt.
5 0
3 years ago
Read 2 more answers
Sheridan Company’s standard labor cost per unit of output is $33.00 (3.00 hours x $11.00 per hour). During August, the company i
seraphim [82]

Answer:

Total variation= $363 favorable

Explanation:

Giving the following information:

Sheridan Company’s standard labor cost per unit of output is $33.00 (3.00 hours x $11.00 per hour). During August, the company incurs 2,970 hours of direct labor at an hourly cost of $12.10 per hour in making 1,100 units of finished product.

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (3,300 - 2,970)*11= 3,630 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (11 - 12.1)*2,970= 3,267 unfavorable

Total variation= 363 favorable

3 0
3 years ago
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