Answer:
Predetermined manufacturing overhead rate= $9.8 per machine hour
Explanation:
Giving the following information:
Machine-hours= 50,000
Manufacturing overhead= $490,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 490,000/50,000= $9.8 per machine hour
Answer:
A. two balance sheets and B. income statement
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
Answer:
a. The Debit column is correctly stated.
b. The Credit column is understated by $17,300 ($8,650 * 2).
c. The Automobiles account balance is correctly stated in the trial balance.
d. The Accounts Payable account balance is understated in the trial balance by $17,300 ($8,650 * 2).
e. If the Debit column total of the trial balance is $200,000 before correcting the error, the total of the Credit column before correction is $182,700.
Explanation:
This mistake is an Error of Commission. It is a problem of arithmetical accuracy, for example, posting to the wrong side of one ledger account. In this case, the Accounts Payable should have been credited with the amount of $8,650. As an arithmetic error, it can only be corrected by doubling the affected amount on the Credit side of the Accounts Payable account.
Answer:
A. $52,020
B. $0
C. $208,080
Explanation:
a. Computation of Rafael's realized gain on the exchange
Using this formula
Realized gain=Fair market value -Adjusted basis
Let plug in the formula
Realized gain= $190,740-$138,720
Realized gain=$52,020
Therefore a. Rafael's realized gain on the exchange is $52,020
b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that
NO BOOT WAS RECEIVED
c. Computation for Rafael's $1245 depreciation recapture Amount
Using this formula
Depreciation recapture Amount=Equipment originally cost -Adjusted basis
Let plug in the formula
Depreciation recapture=$346,800-$138,720
Depreciation recapture=$208,080
Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property
Answer:
$737,000
Explanation:
The computation of the current earnings and profits this year is shown below:
= Taxable income - federal income tax paid - disallowed entertainment expenses + tax-exempt interest - net capital loss
= $1,200,000 - $408,000 - $25,000 + $20,000 - $50,000
= $737,000
Since we add the exempted interest and deduct all other expenses, losses, and taxes to the taxable income so that accurate value can come
