Answer:
d. Shareholders equity increases $ 16,000
Explanation:
Two months rent needs to be adjusted. The total payment made was for $ 48,000 for a six month period. The monthly rent is $ 48,000/6 = $ 8,000
The adjustment amount is thus $ 8,000 * 2 months = $ 16,000
The adjusting entry is:
Rent expense Debit $ 16,000
Prepaid rent Credit $ 16,000
So this results in decrease in prepayment and an increase in rent expense. \Due to an increase in expenses, the net income decreases by the same amount.
The only option of increase in shareholders equity, is not valid as a reduction in net income shall result in a decrease in shareholders equity.
Answer: b. Harold is not required to recognize gross income but must reduce his cost basis in the land to $130,000.
Explanation:
When Harold bought the land for $150,000 he acquired a basis of $150,000 in the land. Due to Jewel's cash problems, he managed to pay $20,000 less for the land.
For tax reporting purposes, he need not recognize gross income but he must reflect that he acquired the land for $20,000 less in his basis for the land thereby reducing the basis to $130,000.
Shaleen in her first two months on the job, she not only learned to do her job more efficiently, but she has also saved the company money.
This is an example of (E) learning effects.
<h3>
What are the learning effects?</h3>
- The learning effect is the process by which education increases productivity and leads to greater earnings in economics.
- In psychology and motor learning, the learning effect refers to the rapid improvements in performance that we witness when a person performs their first 5-10 tries at a new task.
- As the learner becomes more familiar with the activity, these initial leaps in performance become smaller and smaller.
- Learning effects are stronger when a technologically difficult task is repeated since there is more to learn about the task.
<h3>Solution -</h3>
As it is stated above as the learner becomes more familiar with the activity, these initial leaps in performance become smaller and smaller.
Therefore, this is an example of (E) learning effects.
Know more about learning effects here:
brainly.com/question/11429122
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Complete question:
When Shaleen first started at the manufacturing facility, it took her four hours to complete the task she can now accomplish in 30 minutes. In her first two months on the job, she not only learned to do her job more efficiently, but she has also saved the company money. This is an example of
a. Multiple Choice
b. economies of scale.
c. lead strategy.
d. lag effects.
e. learning effects.
f. transition effects.
Answer:
$44.12
Explanation:
For computing the current share price first we have to determine the price of the stock which is shown below:
Price of the stock = Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend equal to
= $12.25 + $12.25 × 5.25%
= $12.25 + 0.643125
= $12.893125
So, the price of the stock is
= $12.89 ÷ (13.25% - 5.25%)
= $12.89 ÷ 8%
= $161.1640625
Now the current share price is
= Present value of the dividend + present value of the price of stock
= $12.25 ÷ (1 + 13.25%)^11 + $161.1640625 ÷ (1 + 13.25%)^11
= $44.12
