Answer:
$38,440
Explanation:
Calculation to determine How much of the proceeds, if any, is taxable to Russ
Face value of policy $74,400
Less: Cash Surrender value ($24,800)
Less: Premium paid ($11,160)
Taxable Proceeds $38,440
Therefore the taxable Proceeds are $38,440.
Answer:
Explanation:
The journal entries are shown below:
a. Inventory A/c Dr $26,000
To Notes payable A/c $26,000
(Being inventory is purchased for signing the short term notes payable)
b. Interest expense A/c Dr $780
Notes payable A/c Dr $26,000
To Cash A/c $ $26,780
(Being cash is paid on maturity)
The interest expense is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $26,000 × 6% × (6 months ÷ 12 months)
= $780
The 6 months is calculated from March 1 to September 1
Answer:
Gross profit = $790000
Explanation:
Suppose:
Sales = 1000000
Cost of goods sold = 200000
Actual overhead = 100000
Direct labor used = 15000 hours
Predetermined rate = $ 6 per hour
Computation of gross profit:
Sales = 1000000
less:<u> Cost of goods sold</u> =200000
Add: under applied overhead (w#1) = <u>10000</u>
(<u>210000</u>)
Gross profit 790000
(w#1) Applied overhead = Actual labour hours * predetermined rate
= 15000 * 6 = $90000.
Actual overhead = <u>100000</u>
Under applied overhead 10000
A company is about to go public with an IPO (initial public offering) and the company founders keep a significant portion of the company's stock. This is an example of signaling.
A public offering in which shares of a firm are sold to institutional investors and typically also to retail investors is known as an initial public offering (IPO) or stock launch. Typically, one or more investment banks will underwrite an IPO and coordinate the shares' listing on one or more stock exchanges.
Underpricing in the IPO market as a signal Investors are aware that only the best can recover the cost of this signal from later issues, which is why some organizations with the best prospects decide it is preferable to indicate their type by underpricing their initial issue of shares.
IPOs assist businesses in raising capital without turning to banks or other financial institutions, which could impose exorbitant interest rates on loans. Additionally, it enables current investors to exit the business without paying capital gains tax.
To know more about initial public offering refer to: brainly.com/question/3068229
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Answer:
Return on total asset and return on equity
Explanation:
These two financial ratio analysis provides the most potent way to arrive at the profitability and overall financial health of a company. The balance sheet and income statement thus provide the line items and figures required to compute such. With Dupont system, the balance sheet item is able to be merged with the income statement to arrive at the overall company's profitability.
