Answer:
Company shall rework on the cell phones.
Explanation:
In the given case we will do the comparison of the rework with the scrap.
In case of rework:
Total cost = $67 of manufacturing + $90 of rework = $157 each unit
Selling price then would be = $134 each
Loss on per unit = $157 - $134 = $23 on each cell phone.
In case no rework is done and the mobile phones are sold in scrap then the cost associated = $67 each
Value for sale = $33 each
Loss per unit on such sale = $67 - $33 = $34 each unit.
Since there is plenty of idle capacity the company in order to decrease the loss from selling these defective cell phones, the company shall rework on the phones, as loss in this case will be $34 - $23 = $11 per cell phone less than the loss in case of scrap sale.
The lending capacity of a bank is limited by the magnitude of their customers’ deposits. In order to lend out more, a bank must secure new deposits by attracting more customers. Without deposits, there would be no loans, or in other words, deposits create loans
Answer:
b.Treasury stock = $180,000
Additional paid in capital = $70,000
Explanation:
Data provided as per the question below:-
Hobbs shares = 10,000 at $25 shares
Common stock = $18
The Journal entry is shown below:-
Cash
(10,000 × $25) $250,000
Treasury stock
(10,000 × $18) $180,000
Additional paid in capital $70,000
(Being issuance of treasury stock is recorded)
b. Treasury stock = $180,000
Additional paid in capital = $70,000
Answer:
$985,000
Explanation:
Given that,
Pretax book income = $1,000,000
Increase in net reserve for warranties = $25,000
Book depreciation = $100,000
Dividend received deduction = $15,000
Book equivalent of taxable income:
= Pretax book income - Dividend received deduction
= $1,000,000 - $15,000
= $985,000
Therefore, the Book equivalent of taxable income is $985,000.
D is the answer!!Have a great day :)
