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3 years ago

Interest earned on a savings account is _____.

Business

1 answer:

kondor19780726 [428]3 years ago

7 0

Correct
b. the percentage a financial institution pays you to borrow your money

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Prince Paper has budgeted the following amounts for its next fiscal year: Total fixed expenses $ 900 comma 000 Selling price pe

stepan [7]

Answer:

The effect on net operating income would be an increase of $137,900

Explanation:

Giving the following information:

Selling price $85

Variable expenses per unit $ 35

If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.

To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:

Effect on income= 3,000*(85 - 35) - 12,100= $137,900

8 0

4 years ago

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

tino4ka555 [31]

Answer:

See attached accounting entries.

Explanation:

For question 1, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 2, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated maximum amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is reasonably probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is remote, that is, there little relationship with this case that cause Pacific Cruise Lines being liable to pay as such potential amount of $1.29 million should be set aside.

Download xlsx

3 0

3 years ago

Shasta Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an out

Dafna11 [192]

Answer:

Explanation:

Unavoidable fixed manufacturing cost is irrelevant as to Shasta Company’s decision to Make or Buy that particular component. It is because, either of their decision, said expense will still incur and it is still form part of their expenses. The only things that will matter to their decision making if that certain expenses will cause changes (decrease in particular) of the potential cost to be incurred by the company that will result to increment their income.

8 0

3 years ago

18) A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise.

pav-90 [236]

Answer:

the amount of cash paid is $1,568

Explanation:

The computation of the amount of cash paid is shown below:

= (purchased value - returned goods) × (1 - discount rate)

= ($1,800 - $200) × (1 - 0.02)

= $1,600 × 0.98

= $1,568

hence, the amount of cash paid is $1,568

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

4 years ago

On August 2, 2018, Wendy purchased a new office building for $3,800,000. On October 1, 2018, she began to rent out office space

Arturiano [62]

Answer:

a. Mild Month MACRS convention applies to the new office building

b. The life of the asset under MACRS is 39 years

c. The cost recovery deduction for 2018 is $20,330

The cost recovery deduction for 2022 is $52,776

Explanation:

a. According to the given data Mild Month MACRS convention is applicable here because real property is placed in service in the middle of the month in which acquired.

b. The life of the asset under MACRS is 39 years

c. cost recovery deduction for 2018= $3,800,000*0.535%

cost recovery deduction for 2018=$20,330

cost recovery deduction for 2022= $3,800,000*2.564%

cost recovery deduction for 2022= $52,776

4 0

4 years ago