Apply concepts what would be the variables on a supply schedule alike and different

Calvin purchased a 40% partnership interest for $43,000 in February 2017. His share of partnership income in 2017 was $22,000, i

Bess [88]

Answer:

Calvin would have a long-term capital gain of $1000.

Explanation:

Calvin's contributions towards partnership is as below

Beg $43,000

2010 income $22,000

2011 income $25,000

2010 income $12,000

Total contribution $102,000

Total amount Calvin realized by selling his partnership interest = $103,000.

Therefore, Calvin would have a long-term capital gain of $1000 (amount Calvin realized - Calvin's contributions = $103,000 - $102,000).

4 0

4 years ago

Performance Gloves, Inc. produces three sizes of sports gloves: small, medium and large.

lapo4ka [179]

Answer:

A.Pattern Department 57 per DLH

Cut and Sew Department 78 per DLH

B.Small glove 8.52

Medium glove 10.65

Large glove 12.78

Explanation:

a) Calculation to Determine the two production department factory overhead rates.

Pattern Department = 165,200/2,900

= 56.9 Approximately 57 per DLH

Cut and Sew Department = 273,000/3,500

= 78 per DLH

Therefore two production department factory overhead rates will be :

Pattern Department 57 per DLH

Cut and Sew Department 78 per DLH

b) Calculation of the factory overhead cost per unit

Small glove (57*.04+78*.08)=8.52

Medium glove (57*.05+78*.10)=10.65

Large glove (57*.06+78*.12)=12.78

Therefore the factory overhead per unit for each product will be: Small glove 8.52

Medium glove 10.65

Large glove 12.78

7 0

3 years ago

Osage Corporation issued 3,700 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco

Elden [556K]

Answer:

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

Explanation:

(a) The stock had a par value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

(b) The stock had a stated value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

(c) The stock had no par or stated value and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock............58,000

Being issuance of 3700 common stock with no stated value per share

(d) The stock had a par value of $9 per share and was issued to attorneys for services during incorporation valued at $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for attorney fees

(e) The stock had a par value of $9 per share and was issued for land worth $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for acquisition of land.

7 0

4 years ago

AB Builders, Inc., has 22-year bonds outstanding with a par value of $2,000 and a quoted price of 106.657. The bonds pay interes

Aloiza [94]

Answer:

7.32%

Explanation:

The price of a bond is the present of its interest payment and the present value of redemption value (RV

Present value of the Redemption Value (RV) =

FV× (1+r/2)^(-2×n)

FV- 2000, r- yield rate, r/2= 6.74%/2 = 3.37%, n-22

=2000× (1.0337)^(-2×22)

= 465.233

Present Value of the coupon payment =Price of bond - PV of RV

= (106.657% × 2000) - 465.233

= $1667.90

PV of coupon payment= A × (1-(1+r)^(-2×n)

A- semiannual coupon payment, r -yield

1667.90 = A × (1-(1.0337)^(-2*22))/0.0337

1,667.90 = A × 22.7710

A = 1,667.90/22.7710

A= 73.246

Annual coupon payment = 2× 73.246= 146.493

Annual coupon rate = coupon payment/ face value

= (146.493/2,000 )× 100

= 7.32%

6 0

3 years ago

Read 2 more answers

Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investm

NISA [10]

Answer:

A)0.67

Explanation:

Coefficient of variation can be regarded as the method that is usually devices in the assessment of the total risk per unit of return in a particular investment.

To calculate the investment's coefficient of variation, we use the expresion below

Coefficient of variation = standard deviation/expected return.

Given:

expected return = 15%

standard deviation = 10%.

Coefficient of variation =10/15

= 0.67

Hence, the investment's coefficient of variation is 0.67

7 0

3 years ago