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german
3 years ago
13

Murphy Company, a cash-basis, calendar-year taxpayer, received a call on December 28, year 1, from a client stating that a check

for $9,000 as payment in full for their services can be picked up at their offices, two blocks away, any weekday between 1:00 and 6:00 P.M. Murphy does not pick up the check until January 3, year 2. In which year does Murphy recognize the income?
Business
1 answer:
Elodia [21]3 years ago
4 0

Answer:

Murphy Company

The year in which Murphy recognizes the income is year 2.

Explanation:

As a cash basis taxpayer, Murphy Company reports income and deductions in the year that they are actually paid or received.  Similarly, as a cash basis taxpayer, Murphy Company deducts expenses in the year the expenses are paid off, which is not necessarily the year they were incurred.  The income for services of $9,000 rendered to a customer, for which payment was received on January 3, year 2, will be recognized in year 2 and not in year 1 when the services were performed.

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Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
Bumek [7]

Answer:

Cost per equivalent unit: $60

Explanation:

Cost per equivalent unit = (Cost of Beginning Work in Progress Inventory + Total production cost during the period) / Equivalent Units of Production (EUP)

Total Production Cost = $90,000

Equivalent Units of production (EUP) = 1,300 + 400 x 50% = 1,500 units

Cost per equivalent unit: $90,000 / 1,500 units = $60

7 0
3 years ago
You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 29%. The T-bill rate is 8%. Your
Anastasy [175]

Answer:

13.85% and 18.9%

Explanation:

As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:

E(r)=r_{1}*w_{1} +r_{2}*w_{2} +....+r_{n}*w_{n}

where E(r) is the expected return, r_{i} is the return of the i asset and w_{i} is the investment in i asset, so applying to this particular case we have:

E(r)=17\%*65\%+8\%*35\%

E(r)=13.85\%

the calculation of standar deviation follows the same logic of the previous formula:

Sigma(r)=29\%*65\%+0\%*35\%

Sigma(r)=18.9\%

4 0
3 years ago
The death benefit of a(n) _____ life insurance policy may go down because of poor investment returns.
ICE Princess25 [194]
<span>The death benefit of a(n) variable and universal life insurance policy may go down because of poor investment returns.
Universal life insurance and variable life insurance are two types of permanent life insurance, in this case if the the person who insured dies any time</span><span> as long as there is enough cash value to pay the costs of insurance in the policy, the death benefit will be paid. </span>
6 0
3 years ago
An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful A
lyudmila [28]

Answer:

a. debit to bad Debt expense for $3,300

Explanation:

The Journal entry is shown below:-

Bad debt expenses Dr, $3,300

       To Allowance for doubtful accounts $3,300

(Being bad debts expenses is recorded)

Therefore to record the bad debt for the period we simply debited the bad debt expenses as it increase the expenses and on the other hand we credited the allowance for doubtful accounts as decrease the assets.

So, the right answer is a. debit to bad Debt expense for $3,300 option.

Working Note:-

Bad debt expenses = Estimated uncollectible - Credit balance

= $4,500 - $1,200

= $3,300

4 0
3 years ago
What is a major internal concern that could affect the incorporation of social media into emergency management?
gavmur [86]
<span>major internal concerns that could affect the incorporation of social media into emergency management are:
</span>- How to track, use and protect citizen's privacy and personal information
Because many people with bad intent could easily obtain their target's information through social media

-. Security policies and restrictions related to IT systems
Social media often became a target for hackers because it stored a lot of important information

<span>-Staff may not be familiar with the applications
</span>The government need to put additional effort in training the staffs to utilize social media in emergency situations
4 0
3 years ago
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