Please do your best. 75% of my grade

The income statement of Dolan Corporation for 2014 included the following items: Interest revenue $121,000 Salaries and wages ex

zalisa [80]

Answer:

$17,400

Explanation:

<em>Equation to be used is as follows: </em>Beginning Prepaid Insurance Expense balance + Cash paid for insurance premium - Ending prepaid insurance balance = Insurance expense

$3,000 + Cash paid - $2,200 = $18,200

$800 + Cash paid = $18,200

Cash paid = $18,200 - $800

Cash paid = $17,400

So, the cash paid for insurance premiums during 2014 was $17,400

4 0

3 years ago

2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J

cestrela7 [59]

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

4 0

3 years ago

Lockard Company purchased machinery on January 1, 2020, for $80,000. The machinery is estimated to have a salvage value of $8,00

netineya [11]

Answer:

a) $9,000

b) $3,000

Explanation:

The calculation of the depreciation expense for each of the following cases

a)

As we know that

= (Purchase cost of machinery - estimated salvage value) ÷ (useful life)

= ($80,000 - $8,000) ÷ (8 years)

= ($72,000) ÷ (8 years)

= $9,000

b) Since the asset purchased as on Sep 1, 2020 so the depreciation expenses would be charged for four months i.e. From September to December.

Also at the same time we assume the books are closed as on Dec 31,2020

Therefore, the depreciation expense is

= $9,000 × 4 months ÷ 12 months

= $3,000

6 0

3 years ago

During 2019, Savannah Corporation, a calendar year C corporation, had operating income of $730,000, operating expenses of $400,0

lesya692 [45]

Answer:

$81,900

Explanation:

tax liability = (total income - total expenses + long term capital gains - short term capital gains) x tax rate

tax liability = ($730,000 - $400,000 + $90,000 - $30,000) x 21% (corporate tax established by TC&JA) = $390,000 x 21% = $81,900

Corporations pay the same tax rate for normal income or capital gains, unlike individuals who generally pay lower capital gains rates.

5 0

3 years ago

Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair

liberstina [14]

Answer:

Takeover Co.

a) Goodwill = $146,000

b) Target's ROI = 36.42%

c) Takeover's ROI = 21.07%

d) False

Explanation:

a) Data and Calculations:

Target Co's net assets fair value = $162,000

Payment by Takeover Co = $308,000

Goodwill = $146,000 ($308,000 - $162,000)

b) Target's ROI:

Operating income = $59,000

Net assets = $162,000

ROI = ($59,000/$162,000) * 100

= 36.42%

c) Takeover Co's ROI:

Operating income = $64,900

Net assets = $308,000

ROI = $64,900/$308,000 * 100

= 21.07%

d) Takeover Co:

Goodwill = $93,000

Purchase price of Target = $255,000 ($93,000 + $162,000)

5 0

3 years ago