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3 years ago

Stellan Manufacturing is considering the following two investment proposals:

1 answer:

6 0

Answer:When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

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Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,00

marusya05 [52]

Answer:

$2,000

Explanation:

The computation of the profit in case of Product B processed further is shown below:

Sales value if processed further $35,000

Less: Sales value at Split-Off $30,000

Incremental revenue $5,000

Less: Additional costs $3,000

Incremental income $2,000

First we have to find out the incremental revenue after that deduct the additional cost so that the incremental income or we can say profit could arrive

6 0

3 years ago

All of the following are true of the real interest rate except it Is equal to the nominal interest rate minus the anticipated ra

Lynna [10]

Answer:

Equals the foreign exchange rate minus the inflation rate.

Explanation:

Nominal rate of interest refers to the interest rate which does not account for rate of inflation.

It is expressed as

Nominal interest rate = Real interest rate + rate of inflation

Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.

Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.

5 0

3 years ago

On January 1, Year 1, Dunn Brothers, Inc., purchased a new smartphone case making machine at a cost of $80,000. The estimated re

Gala2k [10]

Answer:

Depreciation expense under:

the Straight-line method for Years 1 to 4 is $71,000.
the Units-of-production method for Years 1 to 4 is $71,000.
the Double-declining-balance method is $75,000.

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($80,000 - $9,000) / 4 years = $17,750 yearly depreciation expense.

Depreciation expense for Years 1 to 4 is $17,750 x 4 years $71,000.

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($80,000 - $9,000) / 710,000 units x 213,000 units = $21,300

At Year 2, DE = $71,000 / 710,000 units x 156,200 units = $15,620

At Year 3, DE = $71,000 / 710,000 units x 195,250 units = $19,525

At Year 4, DE = $71,000 / 710,000 units x 145,550 units = $14,555

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 1, followed by Year 2.

Depreciation expense for Years 1 to 4, under this method, is $71,000 (addition of all the yearly depreciation).

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/4years = 25%, then 25% multiplied by 2 to give 50%

At Year 1, 50% X $80,000 = $40,000

At Year 2, 50% X $40,000 ($80,000 - $40,000) = $20,000

At Year 3, 50% X $20,000 ($40,000 - $20,000) = $10,000

At Year 4, 50% X $10,000 ($20,000 - $10,000) = $5,000 (the depreciation expense would stop at this stage since the amount falls below the residual value).

Depreciation expense for Years 1 to 4, under this method, is $75,000 (addition of all the yearly depreciation).

5 0

3 years ago

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $5

Brut [27]

Answer:

($500,000)

Explanation:

Economic profit = revenue - explicit costs - implicit costs (opportunity cost)

The revenue is = $3.00 x 250,000 peaches

= $750,000

The explicit costs are = land cost + equipment rent + salaries

= $1,000,000 + 50,000 + 140,000

= $1,190,000

The implicit costs are = interest income + earnings as a shoe salesman

= $20,000 + $40,000

= $60,000

Economic profit = $750,000 - $1,190,000 - $60,000

= ($500,000)

Thus, the farmers' total economic profit is actually a total economic loss of $500,000

6 0

4 years ago

Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to social security ta

Lina20 [59]

Answer:

1. Dr Wages Expense200,000

Cr Social Security Tax Payable 10,800

Cr Medicare Tax Payable 3,000

Cr Employees Federal Income Tax Payable 32,000

Cr Wages Payable 154,200

2. Dr Payroll Tax Expense15,264

Cr Social Security Tax Payable10,800

Cr Medicare Tax Payable3,000

Cr State Unemployment Tax Payable 1,272

Cr Federal Unemployment Tax Payable 192

Explanation:

1. Preparation of Journal entry to record the payroll for the week of December 10.

Dr Wages Expense200,000

Cr Social Security Tax Payable 10,800

($180,000 x 6%)

Cr Medicare Tax Payable 3,000

($200,000 x 1.5%)

Cr Employees Federal Income Tax Payable 32,000

Cr Wages Payable 154,200

[200,000-(10,800+3,000+32,000)]

2) Preparation of the Journal entry to record the payroll tax expense incurred for the week of December 10.

Dr Payroll Tax Expense15,264

(10,800+3,000+1,272+192)

Cr Social Security Tax Payable10,800

Cr Medicare Tax Payable3,000

Cr State Unemployment Tax Payable 1,272

($24,000 x 5.3%)

Cr Federal Unemployment Tax Payable 192($24,000 x 0.8%)

6 0

3 years ago

Stellan Manufacturing is considering the following two investment​ proposals:

Stellan Manufacturing is considering the following two investment proposals: