Answer:
See below
Explanation:
Firstly, we will calculate the standard hour
Standard hours = (Standard hours per unit × Actual output
= 8.2 × 150
= 1,230
Variable overhead efficiency variance
= Standard rate × ( Actual hours - Standard hours)
= $14.6 × (2,875 - 1,230)
= $14.6 × 1,645
= $24,017 U
Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural vistas where roses are grown. Then the market price of roses: a. is less than the marginal social benefit of roses. b. is more than the marginal social benefit of roses. C. equals the marginal social benefit of roses. d. is less than the marginal social cost of roses. e. is greater than the marginal social cost of roses.
Answer:
is less than the marginal social benefit of roses
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. A good has positive externality if the price of the good is less than its marginal social benefit. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the price of the good is less than the marginal social cost of the good
Cameron Corp. has a target capital structure of 40% debt and 60% equity. The company's tax rate is 30% and the yield to maturity on their outstanding bonds is 12%. If their weighted average cost of capital is 9.6%, what is the company's cost of common equity
Answer:
rE = 0.104 or 10.4%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component r represents the cost of each component D, P and E represents debt, preferred stock and common equity rD * (1 - tax rate) is the after tax cost of debtplugging in the available values for wD, wE, tax rate, rD and WACC in the formula above, we can calculate the cost of common equity to be,
0.096 = 0.4 * 0.12 * (1 - 0.3) + 0.6 * rE
0.096 = 0.0336 + 0.6 * rE
0.096 - 0.0336 = 0.6 * rE
0.0624 / 0.6 = rE
rE = 0.104 or 10.4%
3. Which of the following is considered inelastic?
O cable television
O designer clothes
O house
O candy
The correct answer is Candy
Your credit score has no effect on the interest you might receive on loans. O True O False
Answer:
False
Explanation:
"Insider" information is material given
by an employee to
A. another employee of the same business
B. the general public
C. a few non-employees in the public
Insider information, also known as interior information, refers to personal facts related to a publicly traded organisation that can furnish a financial benefit in the markets.
How do people get insider information?The SEC's Edgar database lets in free public access to all filings related to insider shopping for and promoting of stock shares. A number of monetary facts web sites offer easier-to-use databases of insider buying.
This includes Social Security Numbers, financial institution information, different non-public identifiable monetary information, and certain transactions with monetary institutions.
An insider is a director, senior officer, entity, or character that owns greater than 10% of a publicly-traded company's vote casting shares.
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https://brainly.com/question/21484893#SPJ4Crane Company uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $20000 of materials, $16000 of direct labor costs, and $13000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $22000, and the ending balance is $16000. During the year, the company completed 25 machines. How much is the cost per machine
Pharoah Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
1/2/20 Purchased patent (7-year life) $304,500
4/1/20 Purchase goodwill (indefinite life) 345,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 425,000
8/1/20 Payment of copyright (5-year life) 150,000
9/1/20 Research and development costs 215,000
$1,439,500
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Date Account Titles & Explanation Debit Credit
Patents $304,500
Goodwill $345,000
Franchises $425,000
Copyrights $150,000
Research & Development Expense $215,000
Intangible Assets $1,439,500
(To record Intangible Assets account & to set up separate
accounts for distinct types of intangibles)
explain any 2 functions of MBBS doctor.
Answer:
Two functions of MBBS doctors are diagnosing and treating medical conditions and providing preventive care. Diagnosing and treating medical conditions involves using medical history, physical examinations, lab tests, and other diagnostic procedures to identify and treat illnesses, diseases, and injuries. Preventive care includes providing advice about healthy lifestyle choices, such as diet, exercise, and stress management, as well as providing immunizations, screenings, and other preventive measures.
Explanation:
Calculate Payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,810 per week $36 per hour $46 per hour Overtime earnings rate Not applicable 2 times hourly rate 1.5 times hourly rate Federal income tax withheld $930 $238 $515 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 55 hours and the administrator worked 65 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.
Answer:
1. Consultant's earning
Gross pay $2,810
Net pay $1,669.25
2. Computer Programmer
Gross pay $2,520
Net pay $2,093
3. Administrator Income
Gross pay $3,565
Net pay $2,782.62
Explanation:
Calculation to Determine the gross pay and the net pay for each of the three employees for the current pay period
1. Calculation for Consultant Income gross pay and Net pay
Consultant's earning = $2,810
Based on the information given Consultant's GROSS PAY will be $2,810
Calculation to determine the Net pay using this formula
NET PAY = Gross pay - Withheld tax - Medicare tax - social security tax
Let plug in the formula
Where,
Withheld tax = $930
Social security tax = 6% of Total earning
Social security tax= $2,810 * 6%
Social security tax= $168.6
Medicare tax = 1.5% of total earning
Medicare tax= $2,810 * 1.5%
Medicare tax = $42.15
Let plug in the formula
NET PAY = $2,810 - $930 - $42.15 - $168.6
NET PAY= $1,669.25
Therefore Consultant Income gross pay is $2,810 and Net pay is $1,669.25
2. Calculation to determine Computer Programmer gross pay and Net pay
Calculation for GROSS PAY
Rate of earning = $36 per Hour
Working Hours = 55 Hours
Computer programmer Earning = $36 * 55
Computer programmer Earning= $1,980
Overtime hours = 55 - 40
Overtime hours= 15 hours
Overtime earning = 2 times of hourly rate = 15* $36
Overtime earning= $540
GROSS PAY = $1,980+$540
GROSS PAY=$2,520
Calculation to determine the NET PAY
Using this formula
Net Pay = Gross pay - Withheld tax - Medicare tax - Social security tax
Where,
Withheld tax = $238
Social security tax = ($1,980+$540) * 6%
Social security tax= $2,520*6%
Social security tax=$151.2
Medicare tax = 1.5% of total earning
Medicare tax= $2,520 * 1.5%
Medicare tax = $37.8
Let plug in the formula
NET PAY = $2,520 - $238 - $37.8 - $151.2
NET PAY =$2,093
Therefore Computer Programmer Gross pay is $2,520 and the Net pay is $2,093
3. Calculation for Administrator Income Gross pay and Net pay
Calculation for GROSS PAY
Rate of earning = $46 per Hour
Working Hours = 65 Hours
Administrator Earning = $46 * 65
Administrator Earning= $2,990
Overtime hours = 65 - 40
Overtime hours= 25 hours
Overtime earning = 1.5 times of hourly rate = 25 * ($46/2) ( half of the rate is taken)
Overtime earning =25*23
Overtime earning =$575
GROSS PAY = $2,990+$575
GROSS PAY =$3,565
Calculation to determine the NET PAY
Using this formula
Net Pay = Gross pay - Withheld tax - Medicare tax - Social security tax
Where,
Withheld tax = $515
Social security tax = ($2,990+$575) * 6%
Social security tax= $3,565*6%
Social security tax=$213.9
Medicare tax = 1.5% of total earning
Medicare tax = $3,565 * 1.5%
Medicare tax =$53.48
Let plug in the formula
NET PAY = $3,565 - $515 - $53.48 - $213.9
NET PAY= $2,782.62
Therefore Administrator Income is Gross pay $3,565 and the Net pay is $2,782.62
Lisa vozniak income statememt college accounting
Boulderado has come up with a new composite snowboard. Development will take Boulderado four years and cost $250,000 per year, with the first of the four equal investments payable today upon acceptance of the project. Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years. Boulderado's discount rate is 10%. Calculate the IRR for the snowboard project and use it to determine the maximum deviation allowable in the cost of capital estimate that leaves the investment decision unchanged.
Answer:
a) 13.704%
b) 3.704%
Explanation:
Development of composite snowboard = 4 years
Total cost / investment = 250,000 * 4 = $1,000,000
Annual cash flows ; $200,000 for 10 years
discount rate = 10%
cash flow at t = 0 = ( Total cost / investment ) = - $1,000,000
a) calculate the IRR for the snow board
attached below is the calculation using online tool
IRR = 13.704%
b) maximum deviation allowable in cost of capital
maxi deviation = IRR - r
= 13.704% - 10% = 3.704%
A politician says, "We could help low-wage workers by offering them tax credits like the earned income tax credit, but it would be cheaper to do it by raising the minimum wage because that would cost the government nothing." a. What type of policy is the minimum wage? A tax expenditure An automatic stabilizer A government regulation Social insurance b. How can the minimum wage increase government spending? A higher minimum wage raises costs for businesses. A higher minimum wage decreases the amount of tax revenue collected by the government. If a higher minimum wage increases unemployment, government spending on social insurance programs will increase. The minimum wage increases the amount of tax revenue collected by the government.
Answer:
gjvhjjhjbkhvgjvjvcgghv mjnvjhviyhvjvbhjvgkuvjcj
Explanation:
On January 2, 2020, Oriole Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
January 2, 2020 $603000
September 1, 2020 1810800
December 31, 2020 1810800
March 31, 2021 1810800
September 30, 2021 1218000
Oriole Company borrowed $3300000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13560000 in 7% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was: ___________-
a. $474600
b. $158200
c. $482340
d. $120660
Answer:
Oriole Company
The interest capitalized for 2020 was: ___________-
d. $120660
Explanation:
a) Data and Calculations:
Construction Expenditures:
Date Expenditure Weight Weighted Average
January 2, 2020 $603,000 12/12 $603,000
September 1, 2020 1,810,800 4/12 603,600
December 31, 2020 1,810,800 0/12 0
Accumulated Weighted-Average Expenditure $1,206,600
January 2, 2020 Construction Loan $3,300,000
Interest rate of construction loan = 10%
Capitalized Interest for 2020 = $1,206,600 * 10% = $120,660
2021 Expenditure:
March 31, 2021 1,810,800
September 30, 2021 1,218,000
Other outstanding debts:
7% bonds = $13,560,000
The manufacturing overhead budget at Levetron Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,700 direct labor-hours will be required in August. The variable overhead rate is $9.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $143,990 per month, which includes depreciation of $25,640. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:
Answer:
$27.9
Explanation:
Labor hours × Variable manufacturing over head rate
= 7,700 × $9.2
= $70,840
We will then add fixed manufacturing overhead to the above
= $143,990 + $70,840
= $214,830
The next step is to divided the above by the direct labor hour
= $214,830 / 7,700
= $27.9
Therefore the predetermined overhead rate for August is $27.9
A company is preparing its cash budget for the coming month. All sales are on account. Given the following: Beginning Balances Budget Amounts Cash$146,000 Accounts Receivable 196,000 Sales $880,000 Cash disbursements 940,000 Depreciation 33,000 Ending accounts receivable balance 226,000 What is the expected cash balance of the company at the end of the coming month
Answer:
$56,000
Explanation:
Given the above information, we will calculate first the total cash flow.
Total cash flow = Opening cash receivable + Sales - Ending cash receivables
= $196,000 + $880,000 - $226,000
= $850,000
Ending cash balance = Opening cash balance + Total cash flow - Cash disbursement
= $146,000 + $850,000 - $940,000
= $56,000
Ayayai Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipmentâs 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. The annual lease payment is $49,000 at the beginning of each year, and Ayayaiâs incremental borrowing rate is 7%, which is the same as the lessorâs implicit rate.
Required:
Prepare all the necessary journal entries for Falls Company (the lessor) for 2020, assuming the equipment is carried at a cost of $232,000.
Answer:
January 1, 2020
Dr Cash $49,000
Cr Unearned revenue $49,000
December 31, 2020
Dr Unearned revenue $49,000
Cr Lease revenue $49,000
December 31, 2020
Dr Depreciation expense $29,000
Cr Accumulated depreciation, equipment $29,000
Explanation:
Preparation of all the necessary journal entries for Falls Company (the lessor) for 2020
January 1, 2020
Dr Cash $49,000
Cr Unearned revenue $49,000
December 31, 2020
Dr Unearned revenue $49,000
Cr Lease revenue $49,000
December 31, 2020
Dr Depreciation expense $29,000
Cr Accumulated depreciation, equipment $29,000
($232,000 / 8 years )
Which of the following is information found in the SQ Tool?
Approved services by Service Line
Engagement and SQ Team information
Action items
Engagement terms and conditions
The SQ Tool contains information regarding engagement terms and conditions. Therefore, option D is correct.
For the purpose of measuring, a square is formed by placing two straight edges at right angles to one another. It is utilized by machinists and carpenters to locate holes, verify right angles, and locate holes. Additionally, it can be utilized as a guide when drawing lines on materials prior to cutting them.
As a result, they constitute two of the SAQ's components. As an inspector, you are capable not exclusively to yourself yet additionally to your group, the association, and our partners. Professional pride and taking responsibility for one's work are at the heart of accountability.
Therefore, option D is the best option.
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Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 5.00%, and the Federal Reserve wants to increase the money supply by $55.00 million, the Fed would need to make an open market purchase of $________ million. (Insert your answer in millions, and round to two decimal places.)
Answer:
2.75 million
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
Increase in value of money supply as a result of the purchase is determined by the money multiplier
Money multiplier = 1 / reserve requirement
1/0.05 = 20
increase in money supply = amount of open market purchase / reserve requirement
55 / 20 = 2.75 million
How does New York's on-time payment record compare to the national rate?
New York State has a relatively high credit score or on time payment compared to the national average.
What is on time payment?Paying suppliers on the contractually stipulated due date, also referred to as the invoice maturity date, is what is meant by "on-time payment,". It also hast d with credit scores. Although the idea of on-time payment is fairly straightforward, it has been found to be one of the trickiest aspects of corporate payments.
It's important to keep in mind that credit scores can vary greatly depending on the individual, and a state's average credit score is just one factor that contributes to its overall financial health.
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An airline has a marginal cost per passenger of $20 on a route from Detroit to New Orleans. At the same time, the typical fare charged is $400. The planes that fly the route are usually full, yet the airline claims it loses money on the route. This loss may occur because Choose one: A. economic profits are less than accounting profits. B. total costs are higher than the sum of fixed costs and variable costs.
Answer:
A
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Ross Martin arrived at the following tax information:Tax information:
Gross Salary. $59,045
Interest Earnings. $305
Dividend Income. $265
Stamdard deductions. $12,000
Itemized deductions. $11,450
Adjustments to Income. $2,200
What amount would Ross report as taxable income?
Answer:
$33,965
Explanation:
Calculation to determine What amount would Ross report as taxable income
Using this formula
Taxable income =Gross Salary+Dividend Income+Interest Earnings-Adjustments to Income-Itemized deductions-Standard deductions
Let plug in the formula
Taxable income = $59,045 + $265+ $305 − $2,200 − $11,450 − $12,000
Taxable income= $33,965
Therefore The amount that Ross would report as taxable income is $33,965
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $20,300 of the total joint costs of $41,000. A total of 2,700 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,700 and then sold for $14 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point
Answer:
($5,300)
Explanation:
Calculation to determine what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point
QI and VH
Sales value after further processing $37,800
($14 × 2,700)
Less Costs of further processing ($10,700)
Benefit of further processing $27,100
($37,800- $10,700)
Less: Sales value at split-off point ($32,400)
($12 × 2,700)
Net advantage (disadvantage) ($5,300)
($27,100+$32,400)
Therefore If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point is $(5,300)
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses$ 56
Fixed selling and administrative expenses $ 560,000
The company has a desired ROI of 22%. It has invested assets of $54,430,000. It anticipates production of 2,800 units per year.
1).Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
2). Compute the desired ROI per unit. (Round answer to 0 decimal places, e.g. 125.)
3). Compute the markup percentage and target selling price using absorption-cost pricing. (Round the markup percentage to 3 decimal places, e.g. 2.250% and the target selling price to 0 decimal places, e.g. 125.)
Answer:
Gibbs Corporation
1) Fixed cost per unit
= $810
2) ROI per unit
= $4,277
3) Markup percentage = Total cost per unit
= 252-927%
3b) Target selling price, using absorption costing
= Total cost per unit plus Markup
= $5,960
Explanation:
a) Data and Calculations:
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses $ 56
Fixed selling and administrative expenses $ 560,000
Total variable and fixed costs $881 $2,268,000
ROI = 22% = $11,974,600 ($54,430,000 * 22%)
Invested assets = $54,430,000
Estimated annual production units = 2,800
1) Fixed cost per unit = $810 ($2,268,000/2,800)
2) ROI per unit = $4,277 ($11,974,600/2,800)
3) Markup percentage = Total cost per unit = $4,277/$1,691 * 100 = 252.927%
3b) Target selling price, using absorption costing
= Total cost per unit plus Markup = $5,960 ($1,691 + $4,277)
explain the two types of tertiary production
In economics, the types of tertiary production is categorized into:
Personal servicesBusiness services.What does tertiary production entails in the field?Tertiary production refers to the service sector of an economy, and it can be divided into two types:
Personal services: This type of tertiary production includes services that are directed at individuals and families, such as healthcare, education, and personal care services.Business services: This type of tertiary production includes services that are directed at businesses and organizations, such as financial services, consulting, and legal services.As well, personal services tend to be more labor-intensive and face-to-face, while business services tend to be more technology-intensive and impersonal. Both types of tertiary production are important for the functioning of an economy and the well-being of its citizens.
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In 1999, the population of a country was 273,401,000. Of these, 16 million suffered from diabetes (and hence could not consume regular ice cream) and 30 million were lactose intolerant (and hence could not eat ice-cream). On average, consumption per person is 46.6 pints per year. The average price per pint in 1999 was $3.19. What is the market potential in (a) units and (b) dollars? ($ is used as a general unit of currency)
The market potential in units was approx 10.59 billion. The market potential in dollars was approx 33.8 billion.
What is the market potential?The assessment of a market's sales revenue across all of its supply channels is known as its market potential. The population that is engaged in the good or service that a company produces or makes available is known as the market potential. In other terms, a company's market potential is its potential to make money if all of its advantages are capitalized and everything goes according to plan. Typically, it is expressed in terms of sales volume, sales units, or potential income. It is a portion of the whole population, with market potential being the entire number of people who could potentially use the good or service.
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Assume Jim’s behavior toward Glenn resembles his behavior toward Gloria. Does Glenn potentially have a sexual harassment claim against PaperKlip Office Supplies?
Glenn potentially have a sexual harassment claim against PaperKlip Office Supplies as C. Yes, because a male employee can be guilty of sexually harassing another male employee.
How to illustrate the information?In this situation, Glenn Lamar, Managing Director of PaperKlip Office Supplies, is conducting a grievance meeting with Gloria Westfield, a senior executive who has reported feeling physically threatened by a male subordinate.
It should be noted that a male employee can be guilty of sexually harassing another male employee. Therefore, the correct option is C.
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Glenn Lamar, Managing Director of PaperKlip Office Supplies, is conducting a grievance meeting with Gloria Westfield, a senior executive who has reported feeling physically threatened by a male subordinate. During the meeting, the male subordinate, John DiMaggio, knocks on the door and requests permission to participate having learned the meeting was about him.
Assume Jim’s behavior toward Glenn resembles his behavior toward Gloria. Does Glenn potentially have a sexual harassment claim against PaperKlip Office Supplies?
Multiple Choice
No, a male employee cannot be guilty of sexually harassing another male employee.
No, because Glenn is not Jim’s subordinate.
Yes, because a male employee can be guilty of sexually harassing another male employee.
No, because Glenn respects Jim as a worker.
Yes, because Glenn is Jim’s superior
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $620,000; Office salaries, $124,000; Federal income taxes withheld, $186,000; State income taxes withheld, $41,500; Social security taxes withheld, $46,128; Medicare taxes withheld, $10,788; Medical insurance premiums, $15,000; Life insurance premiums, $12,000; Union dues deducted, $9,000; and Salaries subject to unemployment taxes, $66,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
Required:
Record the employer's payroll expenses and liabilities for the month of July. Record the employer's benefit expense. Record the cash payment of all liabilities related to the July payroll.
Answer:
1. July 1
Dr Payroll tax expense $60,876
Cr FICA-Social security taxes payable $46,128
Cr FICA-Medicare taxes payable $10,788
Cr State Unemployment Taxes Payable $3,564
Cr Federal Unemployment Taxes Payable $396
2. July 1
Dr Employee benefits expense $16,200
Cr Employee Medical Insurance Payable $9,000
Cr Employee Life Insurance Payable $7,200
3. July 1
Dr FICA-Social security taxes payable $92,256
Dr FICA-Medicare taxes payable $21,576
Dr Federal income taxes payable $186,000
Dr State income taxes payable $41,500
Dr Medical insurance payable $10,000
Dr Life insurance payable $7,000
Dr Union dues payable $4,000
Cr State Unemployment Taxes Payable $3,564
Cr Federal Unemployment Taxes Payable $396
Cr Cash $366,292
Explanation:
1. Preparation of the journal entry to Record the employer's payroll expenses and liabilities for the month of July
July 1
Dr Payroll tax expense $60,876
($46,128+$10,788+$3,564+$396)
Cr FICA-Social security taxes payable $46,128
Cr FICA-Medicare taxes payable $10,788
Cr State Unemployment Taxes Payable $3,564
($66,000 × 5.4%)
Cr Federal Unemployment Taxes Payable $396 ($66,000 × 0.6%)
(To record the employer's payroll expenses and liabilities)
2. Preparation of the journal entry to Record the employer's benefit expense
July 1
Dr Employee benefits expense $16,200
($9,000+$7,200)
Cr Employee Medical Insurance Payable $9,000 [$15,000 × (100%-40%)]
Cr Employee Life Insurance Payable $7,200
[$12,000 × (100%-40%)]
(To Record the employer's benefit expense)
3. Preparation of the journal entry to Record the cash payment of all liabilities related to the July payroll
July 1
Dr FICA-Social security taxes payable $92,256
($46,128+$46,128)
Dr FICA-Medicare taxes payable $21,576
($10,788+$10,788)
Dr Federal income taxes payable $186,000
Dr State income taxes payable $41,500
Dr Medical insurance payable $10,000
Dr Life insurance payable $7,000
Dr Union dues payable $4,000
Cr State Unemployment Taxes Payable $3,564
($66,000 × 5.4%)
Cr Federal Unemployment Taxes Payable $396 ($66,000 × 0.6%)
Cr Cash $366,292
($92,256+$21,576+$186,000+$41,500+*$10,000+$7,000+$4,000+$3,564+$396)
(To Record the cash payment of all liabilities)
Here are the journal entries for the month of July payroll costs and liabilities, as well as the employer's benefit expense and cash payment of all liabilities linked to the July payroll:
For the month of July, record the following payroll costs and obligations for the employer:
* Debit: Salaries Expense $744,000
* Debit: FICA Taxes Payable $56,916
* Debit: Medicare Taxes Payable $11,576
* Debit: SUTA Taxes Payable $3,564
* Debit: FUTA Taxes Payable $4,000
* Debit: Medical Insurance Premiums Payable $6,000
* Debit: Life Insurance Premiums Payable $4,800
* Credit: Cash $620,000
* Credit: Accounts Payable $124,000
Make a note of the employer's benefit expense:
* Debit: Employer Benefit Expense $10,800
* Credit: Medical Insurance Premiums Payable $6,000
* Credit: Life Insurance Premiums Payable $4,800
Make a cash payment for any liabilities associated with the July payroll:
* Debit: Cash $744,000
* Credit: Salaries Expense $56,916
* Credit: FICA Taxes Payable $11,576
* Credit: Medicare Taxes Payable $3,564
* Credit: SUTA Taxes Payable $3,564
* Credit: FUTA Taxes Payable $4,000
* Credit: Medical Insurance Premiums Payable $6,000
* Credit: Life Insurance Premiums Payable $4,800
The journal entries above show how to account for employer payroll costs and liabilities. The first journal entry documents accumulated payroll, which includes employee deductions. The employer's benefit spending is recorded in the second journal entry. The third journal entry reflects the cash payment of all July payroll liabilities.
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What is a living will?
Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership and has an outside basis in his/her partnership interest of $104,000. On January 1 of the current year, Marco sells his partnership interest to Ryan for a cash payment of $137,000. The partnership has the following assets and no liabilities as of the sale date:
Tax Basis FMV
Cash $ 18,000 $ 18,000
Accounts receivable 0 12,000
Inventory 69,000 81,000
Equipment 180,000 225,000
Stock investment 45,000 75,000
Totals $ 312,000 $ 411,000
The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.
4.
value:
1.00 points
Required information
a. What are the hot assets [§751(a)] for this sale? (Select all that apply.)
Accounts receivable
Inventory
Stock investment
Potential depreciation recapture in the equipment
References
eBook & Resources
Difficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
5.
value:
1.00 points
Required information
b. What is Marco’s gain or loss on the sale of his partnership interest?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
Check my work
6.
value:
1.00 points
Required information
c. What is the character of Marco’s gain or loss?
$23,000 ordinary income and $10,000 capital gain
$10,000 ordinary income and $23,000 capital gain
$33,000 ordinary income
$33,000 capital gain
None of these
References
eBook & Resources
Difficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
Check my work
7.
value:
1.00 points
Required information
d. What are Ryan’s inside and outside bases in the partnership on the date of the sale?
Answer:
I have no idea
Explanation:
I apologize
a) The hot assets according to [§751(a)] for this sale are:
a. Accounts receivableb. Inventoryd. Potential depreciation recapture in the equipment.b) Marco’s gain or loss on the sale of his partnership interest is $33,000 ($137,000 - $104,000).
c) The character of Marco’s gain or loss is d. $33,000 capital gain.
d) Ryan’s inside and outside bases in the partnership on the date of the sale are $137,000 ($411,000/3).
What are hot assets in a partnership?Hot assets refer to these assets: "unrealized receivables" and "inventory items," which generate ordinary business income when sold.
The hot assets also include, in this instance, the "unrealized depreciation recapture" in the equipment of the partnership.
Data and Calculations:Tax Basis FMV
Cash $ 18,000 $ 18,000
Accounts receivable 0 12,000
Inventory 69,000 81,000
Equipment 180,000 225,000
Stock investment 45,000 75,000
Totals $ 312,000 $ 411,000
Question Completion:The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.
a. What are the hot assets [§751(a)] for this sale? (Select all that apply.)
a. Accounts receivable
b. Inventory
c. Stock investment
d. Potential depreciation recapture in the equipment
b. What is Marco’s gain or loss on the sale of his partnership interest?
c. What is the character of Marco’s gain or loss?
a. $23,000 ordinary income and $10,000 capital gain
b. $10,000 ordinary income and $23,000 capital gain
c. $33,000 ordinary income
d. $33,000 capital gain
e. None of these
d. What are Ryan’s inside and outside bases in the partnership on the date of the sale?
The hot assets according to [§751(a)] for this sale are Accounts receivable, Inventory, and the potential depreciation recapture in the equipment because they generate ordinary business income when sold.
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An automobile company is building a new factory in your town. What may be a positive externality of this event? (1 point)
a
Noise produced by the workers and factory machines
b
Better schools from increase in property tax revenue
c
Reduction of contaminants in the local water supply
d
Improvement in the level of pollutants in the air
Answer:
better school from increase in property tax revenue