Which of the following caused readership of The Boston Globe to plummet?

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received

aleksley [76]

Answer:

A. $11,970

B. $11,890

C. January

Explanation:

a. Calculation for the after-tax cost if Isabel pays the $19,000 bill in December

After-tax cost=$19,000 - ($19,000 x 37%)

After-tax cost= $19,000 - $7,030

After-tax cost= $11,970

Therefore the after-tax cost if Isabel pays the $19,000 bill in December will be $11,970

b. Calculation for the after-tax cost if Isabel pays the $19,000 bill in January

First step is to calculate the cost before taxes

Cost before taxes = $19,000 - ($19,000 x 8%/12) Cost before taxes= $19,000 - $127

Cost before taxes= $18,873

Now let calculate the After-tax cost

After-tax cost = $18,873 - ($18,873 x 37%)

After-tax cost= $18,873 - $6,983

After-tax cost = $11,890

Therefore the after-tax cost if Isabel pays the $19,000 bill in January will be $11,890

c. Based on the above calculation for both a and b, Isabel should pay the amount of $19,000 bill in January reason that it has the lowest cost of debt of the amount of $11,890 compare to December which has the cost of debt of the amount of $11,970.

5 0

2 years ago

Vito borrows $150,000 from Workers & Farmers Bank to buy a home. If he fails to make payments on the mortgage, the bank has

mariarad [96]

Answer: Option C

Explanation: Foreclosure is something that occurs if the mortgage is not paid by a borrower. In fact, it is a judicial process through which the person relinquishes all ownership rights.

If the owner is unable to settle off the outstanding loans or sell property through a short sale, then the estate will go to an exchange for foreclosure. If the estate does not sell then, it will be taken over by the lender.

When a lender loans you money without any collateral (credit card debt, for instance), it can take you to court for failure to pay, but it can be very hard to collect money from you.

Lenders often sell this sort of debt to outside collection agencies for pennies on the dollar and write off the loss. This is considered an “unsecured loan.”

5 0

3 years ago

Government Purchases $15 Personal Consumption 120 Gross Investment 25 Consumption of Fixed Capital (depreciation) 5 Exports 8 Im

beks73 [17]

Answer: $156

Explanation:

The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.

Based on the information given, the GDP will be calculated as:

GDP = C + I + G + X - M

where C = consumption = $120

I = Investment = $25

G = government purchases = $15

X = exports = $8

M = imports = $12

GDP = C + I + G + X - IM

GDP = $120 + $25 + $15 + $8 - $12

GDP = $156

4 0

2 years ago

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation f

Shalnov [3]

Answer:

A. Debit Equipment and credit Cash.

You purchase equipment and you pay in cash.

B. Debit Dividends and credit Cash.

You paid cash dividends.

C. Debit Wages Payable and credit Cash.

You paid wages that you owed to your employees. Generally wages are paid at the end of the week and not all months end on a weekend. So you must record wages payable until you actually pay the wages.

D. Debit Equipment and credit Common Stock.

You received equipment in exchange for common stock.

E. Debit Cash and credit Unearned Revenue.

You received cash in advance for some food that you will deliver in the future.

F. Debit Advertising Expense and credit Cash.

You incurred in advertising costs and you paid them in cash.

G. Debit Cash and credit Service Revenue.

You sold meals and your clients paid you in cash.

7 0

3 years ago

It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it

Zigmanuir [339]

Answer: b. Economies of Scope

Explanation:

Economies of Scope refers to a situation where a company is able to reduce the cost of producing two or more goods by combining their production thereby leading to savings in the production process.

Economies of Scope in effect points out that there are some goods that when produced in tandem with another, lead to a cost reduction which means that its savings is <em>based on variety</em>.

Goods that usually achieve Economies of Scope are goods that are compliments, produced by similar methods or use similar inputs for production.

Firm A merging with Firm B produced the 5 radios and batteries cheaper so the new company is experiencing Economies of Scope.

5 0

3 years ago