1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
2 years ago
11

On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost

for financial statement and income tax purposes. The change will result in a $2,000,000 increase in the beginning inventory at January 1, 2015. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is Group of answer choices $0. $1,400,000. $1,750,000. $2,500,000.
Business
1 answer:
il63 [147K]2 years ago
5 0

Answer:

$1,400,000

Explanation:

According to the scenario, computation of the given data are as follows,

Increase in beginning inventory = $2,000,000

Income tax rate = 30%

So, we can calculate the effect on beginning retained earning by using following formula,

Cumulative effect = Increase beginning inventory × (1 -  tax rate)

= $2,000,000 × ( 1 - 30%)

= $2,000,000 × 70%

= $1,400,000

You might be interested in
Karen doesn’t like driving to the local bank branch, but doesn’t think that it is secure to do financial transactions on her pho
tangare [24]
I say B. but maybe D
7 0
3 years ago
Read 2 more answers
Janice’s firm is entering a new market and she plans to set prices to take sales away from the established market leader even th
miv72 [106K]

Answer:

The correct answer is Sales-orientation.

Explanation:

The orientation towards sales is seen in sectors where competition is high, usually when supply is slightly higher than demand. In these cases, if consumers are not pushed, they will not buy the company's products.

Companies are going to focus on manufacturing more products than demand is able to absorb. In order to sell them all, aggressive sales and communication policies will be used.

6 0
3 years ago
Use the following information to answer the next three questions.
nalin [4]

Answer:

The  alignment of numbers in the first part of the question is off. However, you solve this question as shown below. The correct answer is C. $1,124.

Explanation:

This is a one-time cashflow type of question where the principal amount is invested once and no other addition is made to the account. You use the future value formula to solve the result of the compounding effect at year 3.

FV formula;

FV = PV(1+r)^n

PV = 800

discount rate; r = 12% or 0.12

total duration of investment; n = 3

therefore; FV = 800(1+0.12)^3

FV = 800 * 1.404928

FV = 1123.94

To the nearest whole dollar, the amount will grow to $1,124

6 0
2 years ago
If the amount of variability due to within group differences is equal to the amount of variability due to between group differen
Anna11 [10]

If the amount of variability due to within-group differences is equal to the amount of variability due to between-group differences, your F value will be equal to one (1).

<h3>What is the F value?</h3>

In biology, the F value is a statistic used to estimate the variation level between different groups that can be explained by collected data.

The F value is used to test (either confirm or reject) a given explanation of data, which is known as the null hypothesis.

In conclusion, if the amount of variability due to within-group differences is equal to the amount of variability due to between-group differences, your F value will be equal to one (1).

Learn more about the F value here:

brainly.com/question/24515272

#SPJ1

8 0
1 year ago
A firm has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming y
Alisiya [41]

Answer: 13%

Explanation: The cost of equity can be defined as the return a company pays to its shareholders in return of bearing the risk of investing in the company.

As per the given figures in the question we can say that cost of equity can be determined with the help of dividend discount model, which can be equated as follows :-

k_{e}= \frac{D1}{P0}+G

where,

ke = cost of equity

D1 = expected dividend

P0 = current price

G = growth rate

So, putting the values into equation we get :-

k_{e}= \frac{\$2}{\$25}+5\%

               = 13%

4 0
3 years ago
Other questions:
  • Which pair of Information Technology career fields may require work to be done outside of normal office hours?
    14·1 answer
  • What happens to the surplus payroll taxes generated by social security? the surplus money is deposited into individual workers'
    12·1 answer
  • At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 918,000 Credit sales 31
    6·1 answer
  • Joe decided to quit his computer-programming job (where he was earning $48,000 per year) to start his own software business. For
    5·1 answer
  • Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig
    14·1 answer
  • ABC common stock just paid a dividend of $2.50 per share. The ABC dividend is expected to grow 20% per year for two years, and t
    12·1 answer
  • Will give brainliest
    10·2 answers
  • Discuss the characteristics of Labour ​
    13·1 answer
  • Which buyer agreement document provides the greatest advantage for you in your relationship with a potential buyer
    6·1 answer
  • On december 1 victoria company signed a 90 day 4% note payable with a face value of 15,000 what amount of interest expense is ac
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!