Answer:
The correct answer is a. Rational decision-making perspective.
Explanation:
The rational model pursues the constitution of a process of choice among alternatives to maximize the benefits of the organization. It includes a broad definition of the problem, an exhaustive collection and analysis of the data, as well as a careful evaluation of the alternatives. Andreu, in the year (2001), affirms that the criteria for evaluating alternatives are well known and assumes that the generation and exchange of information between individuals is objective and precise. Therefore, the rational decision-making model is based on 3 explicit assumptions:
- All available information related to the alternatives has been obtained.
- These alternatives can be classified according to explicit criteria.
- The selected alternative provides the maximum possible profit for the organization (or for decision makers).
Answer:
1. $173,500
2. $ 71,000
Explanation:
Requirement 1: Solution
We can calculate the fair value of new parcel of land just by adding the current market price with additional cash paid to complete the transaction
Fair Value = Current market price + cash paid additionally
Fair Value = $150,000+$23,500
Fair value = $173,500
Requirement 2: Solution
We need to calculate Gain/loss on exchange first in order to record them on books. This can be done by just subtracting the land's book value from the current market price of land
Gain/loss on exchange = Current market price - book value
Gain/loss on exchange = $150,000 - $79,000
Gain/loss on exchange = $71,000
Entries: Debit Credit
New land $173,500
Old land $79000
Cash $23,500
Gain $71,000
Answer:
When a taxpayer has an underpayment of estimated tax or fall behind on his/her tax prepayment, then he/she is required to pay a penalty on Form 2210. This penalty is called underpayment penalty.
According to the tax laws, Mr. P and Ms. S can avoid an underpayment penalty if their withholding's and estimated tax payments equal or exceed one of the following two safe harbors:
- 90 percent of current tax liability ($200,000 x 90% = $180,000)
- 110 percent of previous year tax liability (110% x $170,000 = $187,000)
From the above calculation, it is clear that Mr. P and Ms. S's withholding's ($175,000) do not equal or exceed the amount of two safe harbors. So, they need to increase their withholding's or make estimated payments to avoid underpayment penalty.
If Mr. P and Ms. S increase their withholding's by $5,000 or make estimated payments of $1,250
per quarter ($5000/4), they can avoid the underpayment penalty.
Mr. Paula and Simon average gross income is greater than $150,000, so 110% is taken.
Answer:
d. The maintenance costs associated with the napkin folding machine.
Explanation:
The cost that required one or more processors to produced a final product is known as joint cost
Here in the given question, the maintenance cost is not considered to be a joint cost as this cost are associated with the paper napkins
Also, the pulping, screening, rolling, etc are considered to be joint cost
Hence, the correct option is d.
Answer and Explanation:
The Preparation of balance sheet is shown below:-
Balance Sheet
Current liability
Long term debt of Current portion $40,100,000
Long term liability
Notes payable $31,900,000
($40,100,000 - $8,200,000)
Total liabilities $72,000,000
So, to reach the total liabilities we simply add the long term debt of current portion with notes payable.
