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2 years ago

When inventory increases, which costing method generally results in higher net income?.

1 answer:

3 0

Answer: Income is higher under absorption costing by $15,000. This is consistent with a general rule of thumb: Increases in inventory cause income to be higher under absorption costing than under variable costing, and vice versa.

Explanation:

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Mia has an outside basis of $50,000 in the Brimstone Partnership, including her share of liabilities of $25,000. In a liquidatin

finlep [7]

Answer:

$0 gain or loss

Cash basis $10,000

Inventory $15,000

Explanation:

Calculation for Mia’s recognized gain or loss on the liquidation and basis in the property received

First step is for us to calculate for the outside adjusted basis

Using this formula

Outside adjusted basis=Outside basis - Liabilities

Let plug in the formula

Outside adjusted basis=$50,000 - $25,000

Outside adjusted basis= $25,000

Second step is to calculate for theGain or loss

Using this formula

Gain/Loss=Outside adjusted basis- Cash received - Inside basis

Let plug in the formula

Gain/Loss =$25,000 -$10,000 -$20,000

Gain/Loss = ($5,000)

Based on the above calculation for Mia Gain/loss in which Mia had ($5,000) this means there is $0 gain or loss

Third step is to calculate for the Inventory

Using this formula

Inventory = Cash + Gain/Loss

Let plug in the formula

Inventory =$10,000 + $5,000

Inventory = $15,000

In summary Mai will have $0 gain or loss, the Cash basis amount will be $10,000 while the Inventory amount will be $15,000

5 0

3 years ago

janie curtis borrowed $22,000 from a bank at an interest rate of 9% compounded monthly. this loan is to be repaid in 36 equal mo

Margaret [11]

Answer:

Explanation:

Given:

PV = $22,000

r = 9% /12 = 0.09/12 compounded monthly

n = 36

we need to find the payment per month:

= $\frac{rPV}{1 - (1+r)^{-n} }$

= $\frac{0.0075*22000}{1 - (1+0.0075)^{-36} }$

= $ 699,59

Hence, after 20th payment, she already paid:

$699,59 * 20 = $13,991.8

After we find out the Future value:

FV = PV $(1+i)^{n}$

=$22,000( $(1+0.0075) ^{36}$

= $28,790.20

At the end, the total amount she must pay at that time is:

FV - The amount she has already paid

= $28,790.20 - $13,991.8

=$14,794.4

Hope it will find you well.

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3 years ago

When making decisions, managers should consider all relevant benefits and relevant costs, which include: (Check all that apply.)

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Answer:

opportunity costs, incremental costs, out-of-pocket costs

Explanation:

The cost of the following finest possibility that is sacrificed is referred to as the opportunity cost. These are important considerations while deciding between two alternative options.The costs that the firm pays out of pocket are known as out of pocket charges. These are important considerations while making a judgment

The variation in costs between two decisions is referred to as incremental costs. All of these are important in making decisions.

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Answer:

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4 years ago