Answer: A. Lowering the degree of operating leverage.
Explanation:
The degree of operating leverage measure how much the earnings from a project will change as a result of sales.
If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.
Population - 50,000
Employed - 45,000
Students not looking for work - 1,000
To calculate Boone's unemployment rate you'll use the formula:
Unemployment rate = number of people unemployed / labor force
Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.
The labor force is made up of everyone willing and able to work.
First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)
Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000
Finally, we are able to calculate the unemployment rate of Boone.
Unemployment rate = number of people unemployed / labor force
Unemployment rate = 4,000/49,000= .081 multiply by 100 to get the percentage. 8.1%
Unemployment rate of Boone is 8.1%
Answer:
d. $720,000 asset.
Explanation:
At 2014 David Company reported a loss for 2,400,000 which, for taxes purposes wasn't recognized.
Thus, there is a temporary diffrence in favor of the company,
as is paying more income tax today (the 2,400,000 loss is not recognzied thus, more income taxes are being paid)
and then, will pay less than the accounting net income (latter will pay taxes including this loss, thus less income tax)
This is a deffered income tax asset for: 2,400,000 x 30% = 720,000
tax deffered(assets) 720,000 debit
income tax expense 60,000 debit
cash 780,000 credit
Answer:
$2,496
Explanation:
Marcella's overvlauation = $38,000 - $12,000 = $26,000
It is more than twice the fair value of the sculpture ($12,000 x 2 = $24,000), so her penalty will be doubled.
The normal penalty = 20% x $6,240 = $1,248
Double the penalty = $1,248 x 2 = $2,496
