Answer:
<em>Adjustments help to ensure that </em><em><u>asset </u></em><em> balances are reported at amounts representing the economic benefits used during the period.</em>
Answer:
e. $3,000 short-term capital loss (STCL)
Explanation:
From the given information;
Tim may deduct only $3,000 short-term capital loss (STCL) because the loan is not business-related. SO, he can claim a maximum of $3000 in the current year and the remaining can be forwarded to ordinary income on the individual return in any one tax year.
Answer:
C. Allocation of fixed manufacturing costs are arbitrary at best.
Explanation:
A.- Yes, fixed cost occurs regardless of the level of production, but <em>that is true for every costing method,</em> and some of them do calculate a unit rate for fixed overhead. the statment is partially true
B.- If fixed cost changes with the level of production then, are variable cost, not fixed. Statement is FALSE
C. The allocation of fixed manufacturing costs is arbitrary at best. This is the reasoning for variable costing to consider fixed cost expenses, the method of allocating cost, using a rate always generates a difference in applied and overapplied MO It generates distortions and is not objective, it is based on personal option. The use of direct labor hours, cost or machine hours is evidence of that. TRUE
D.- There is such a cost, like depreciation, but <em>others do incur in cash disbursements,</em> like rent, indirect materials, supervisors, maintenance cost and others.is Statment is FALSE
Answer:
17.6%
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the rate of return on the stock by using following formula:-
Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)
Before estimate rate of return on the stock
= 16% = α + (4% × 1) + (5% × 0.6)
= 16% = α + (0.04 × 1) + (0.05 × 0.6)
= 0.16 = α + 0.04 + 0.03
= 0.16 - 0.04 - 0.03 = α
α = 0.09 =9%
Rate of return after the changes
= 9% + (5% × 1) + (6% × 0.6)
= 0.09 + 0.05 + 0.036
= 0.176
= 17.6%
According to the analysis, New rate of return on the stock is 17.6%
Answer:
$80,800
Explanation:
Calculation to determine the annual cash inflow have to be to make the investment in the equipment financially attractive
Using this formula
Annual cash flows = Negative net present value to be offset ÷ Present value factor
Let plug in the formula
Annual cash flows = $401,414 ÷ 4.968
Annual cash flows = $80,800
Therefore the annual cash inflow have to be to make the investment in the equipment financially attractive is $80,800
