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faust18 [17]
2 years ago
11

When spoiled goods have a disposal​ value, the net cost of the spoilage is computed by​ ________. A. adding the costs to complet

e a saleable product to the costs accumulated to the inspection point B. adding disposal value to the costs of the good units transferred C. deducting disposal value from the costs of the spoiled goods accumulated to the inspection point D. deducting the costs to complete a saleable product from the costs accumulated to the inspection point
Business
1 answer:
madam [21]2 years ago
3 0

The net cost of the spoilage is computed by  adding the costs to complete a

saleable product to the costs accumulated to the inspection point.

The net cost of spoilage involves summing up the disposable value of the

product to the costs accumulated to inspection point.

The cost of spoilage also refers to the costs accrued as a result of wastage

or loss during manufacturing.

Read more on brainly.com/question/25393278

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Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 10 percent, has a YTM of 8 percent,
Degger [83]

Answer:

          Miller Bond:                    

Today:      1,166.63

1-year       1,159.83

4-years     1,135.90

9-years     1,081.11

13-years   1,018.86

14-years  1,000 (maturity)

Modigliani Bond

Today:     851.01

1-year      856.25

4-years    875.38

9-years     922.78

13-years   981.41

14-years  1,000 (maturity)

Explanation:

The present value will be the discount coupon payment and maturirty at the YTM rate:

<u>Miller Bond:</u>

The coupon payment are calcualte as ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.00 (1,000 x 10% / 2)

time      28 (14 years x 2 payment per year)

rate   0.04 (8% YTM / 2 payment per year)

50 \times \frac{1-(1+0.04)^{-28} }{0.04} = PV\\

PV $833.1532

While Maturity, using the lump sum formula

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $1,000.00

time   28 semesters

rate  0.04

\frac{1000}{(1 + 0.04)^{28} } = PV  

PV   333.48

PV coupon $833.1532  +PV maturity  $333.4775  = Total $1,166.6306

For the subsequent time we must adjust t

in one year, there will be 26 payment until maturity

50 \times \frac{1-(1+0.04)^{-26} }{0.04} = PV\\

PVcoupon $799.1385

\frac{1000}{(1 + 0.04)^{26} } = PV  

PVmaturity   360.69

Total $1,159.8277

As the bond get closer to maturity it will get closer to face value until maturity when it will equalize it.

<u>We recalculate the same formula with values of:</u>

in 4-year : then 10 years to maturity t = 20

in 9-years: then 5 years to maturity t= 10

in 13-years: 1 year to maturity t = 2

at 14 years: is maturity date so equals the face value of 1,000

<em>Remember:</em> there are two payment per year.

Same process will be done with Modigliani bond:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,000 x 8% / 2 payment per year : 40.00

time: 14 years x 2 payment per year = 28 payment

rate 10% annual rate /2 = 0.05

40 \times \frac{1-(1+0.05)^{-28} }{0.05} = PV\\

PV coupon $595.9251

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity $ 1,000.00

time   28 semester

rate  0.05

\frac{1000}{(1 + 0.05)^{28} } = PV  

PV  maturity 255.09

PV coupon $595.9251  + PV maturity  $255.0936 = Total $851.0187

and then we calcualte for the same values of t we are asked for the Miller bond.

8 0
3 years ago
Kentucky Lumber and MillWork Company contracted to supply Rommell Company millwork for use in the construction of a school build
omeli [17]

Answer:

Kentucky can gain advantage since it has not breached any terms of the contract.

Explanation:

Kentucky Lumber will be beneficiary of the decision since it is Rommel company who is ending up the contract but Kentucky Lumber is willing to continue the service according to the terms of the contract. Kentucky mill work was destroyed but it bought the equipment from a third party to continue providing the service according to the contract terms.

5 0
2 years ago
Read 2 more answers
Two foreign companies want to trade shares of their stock on u.s. stock exchanges. one company follows ifrs but the other compan
Svetach [21]

Answer;

-A foreign company that wants to have their shares traded on U.S. stock exchanges who uses accounting practices that comply with IFRS

Explanation;

Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States. Generally accepted accounting principles (GAAP) is a set of accounting standards that have substantial authoritative support and which guide accounting professionals.

-FASB goal is to provide leadership for public companies in establishing and improving the accounting methods used to prepare financial statements. The FASB has the authority to set, but not enforce, accounting standards. Enforcement falls under the jurisdiction of the SEC. The FASB takes recommendations from the SEC and the AIPA when devising or improving standards; however, it is not required to.

3 0
3 years ago
2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth
AnnyKZ [126]

The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.

The initial deposit might have a higher purchasing power because of inflation.

When money is deposited in a savings account, the amount of money earns interest.

The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)

Interest earned = $$5,306.04 - $5,000 = $306.04

Interest rate = $306.04 / (3 x $5000) = 2.04%

Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.

To learn more about inflation, please check: brainly.com/question/18072639

4 0
2 years ago
This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 mill
const2013 [10]

Answer:

Net Revenue=$120,000

Explanation:

Given Data:

Tax abated=4%

Assessed property tax value of the facility=$20,000,000

New assessed property tax value of the facility=$23,000,000

Required:

Net effect on County G’s current year tax revenue from the abatement=?

Solution:

Decrease in revenue=(0.04*$20,000,000)

Decrease in revenue=$800,000

Decrease in Revenue due to economic boom=0.04*$23,000,000

Decrease Revenue due to economic boom=$920,000

Net Revenue= Decrease Revenue due to economic boom-Decrease in revenue

Net Revenue=$920,000-$800,000

Net tax Revenue=$120,000

8 0
2 years ago
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