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3 years ago

Last year, Green Corporation incurred the following expenditures in the development of a new plant process:

Business

1 answer:

zloy xaker [14]3 years ago

4 0

Answer:

$50,400

Explanation:

Calculation to determine the amount of the deduction for the current year

First step is calculate the Research and experimental costs

Salary $250,000

Materials $90,000

Utilities $20,000

Depreciation $18,000

Research and experimental costs $378,000

($250,000+$90,000+$20,000+$18,000)

Now let determine the amount of the deduction for the current year

Current year deduction = $378,000/60 * 8

(Note that May-December will give us 8 months)

Current year deduction = $50,400

Therefore the amount of the deduction for the current year is $50,400

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If a typical firm in a perfectly competitive industry is earning profits. True or False

Gwar [14]

Answer:

The answer is True.

Explanation:

Because, then new firms will enter in the long run causing market supply to decrease, market price to fall , and profits to decrease.

6 0

3 years ago

Billy has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his superviso

Ber [7]

Answer:

He could take deep breaths and then respond nonjudgmentally

Explanation:

From the question, we are informed about Billy who has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his supervisor just does not seem to notice or in Billy’s opinion, care. Billy likes his job and wants to keep it. He listens to what his supervisor says and then his supervisor asks Billy to prepare a written response. Before Billy leaves the room to prepare the response, In this case should he respond to his supervisor by taking deep breaths and then respond non-judgmentally when addressing is supervisor.

7 0

3 years ago

Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5.

expeople1 [14]

Answer:

Air France should have recognized the Revenue in month of APRIL.

Explanation:

According to the revenue recognition concept the revenue should be recognized when it is realizable. When goods or services are tranferred or rendered to the customer. It doesn't matter matter when the payment is received. Payment received in advance should be recorded as unearned revenue rather as revenue. On the other hand payment doesn't received until the transfer of goods or services, a receivable will be made in result of revenue recognition entry. Air France should recognize the revenue on April 5, when the flight took placed and services are performed. Sale of ticked on January 26 will be recorded as unearned revenue and a receivable on the other hand. The receivable will be adjusted on February 4 when cash is received and the revenue will be recognized on April 5 when flight took place.

7 0

3 years ago

Your firm (an Australian firm) makes a sale to a Japanese customer. The sale price is 200 million Japanese Yen payable in exact

charle [14.2K]

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90

= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

= ¥351.26214 =A$1

c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

A$ 1,333,333.33333

Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward Exchange outcome = in Australian Dollars = ¥200 million/ ¥50 =

A$4 million

Hedging outcome minus Forward Exchange outcome

A$2 million - $4 million = -A$2million

Explanation:

a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive ¥200 million in 90 days, can enter into a forward contract to deliver the ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.

b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

5 0

3 years ago

The margin of safety is a measure of the distance between budgeted sales and the break-even point. It can be measured in dollars

Rudiy27

Answer:

The correct option is these statements are true

Explanation:

Margin of safety is the measure of the reduction in sales that needs to be recorded before a company makes no profit,invariably the difference the planned sales volume and the sales volume required to break even(makes no profit no loss).

The margin of safety can be expressed in volume,say 100 units of a product,in dollar terms ,say each product sells for $100 each,the margin of safety becomes $10,000($100*100) and can also be expressed in percentage terms depending on the way management wants it stated.

4 0

3 years ago