A Corporation is selling an existing asset for $1,700. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period, and has been depreciated for four full years. If the assumed tax rate is 40 percent on the ordinary income and capital gains, the tax effect of this transaction is
1. What is this company's break even sales point (in units)? 2. What does this company's absorption costing income statement look like? 3. What does this company's variable costing income statement look like? *(For company's numbers as they apply to the questions please see attachment)
The market price of outstanding issues often varies from par (face value) because ______ the maturity data has changed, the coupon rate has changed, the market rate of interest has changed, or old bonds sell for less than new bonds I believe - the market rate of interest has changed is the answer - please advise answer
Preferred Stock is valued as if it were _____ a fixed income obligation, a bond, a perpetuity, or a common stock I believe the answer is - a fixed income obligation - please advise answer & why - thanks!
A change in the risk-free rate would NOT be due to ___________ an international trade embargo, a change in Federal Reserve policy, foriegn competition in the firm's product market area, or none of these
A person plans to make a one-time endowment that would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be ____ $300,000, $3,000,000, $750,000, or $1,428,571 Please answer & show work - thanks!
I need to better understand how to calculate these questions and find a break-even analysis. Lava Rocks has fixed cost of $75,000 per month. Each model has the following identifiable sales price and variable material costs respectively. Kona $6,500 $2,600 Hilo $3,900 $1,950 Paris $4,200 $1,890 When Lava Rocks sells a b
OD Practice Problem - Johnson and Johnson's Life for Life. ** (See attachment for full background and questions) **
The first year someone owned stock they received $1.71 per share and in the fifth year they received $2.89 per share. What was the growth rate of the dividends over the five year period _____ 7 %, 14%, 12%, or 5%
A firm with a total asset turnover lower than the industry standard and a current ratio which meets the industry standard may have ______. excessive fixed assets, excessive inventory, excessive accounts receivable, or excessive debt please advise answer & why - thanks!
A firm has just ended the calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow for the year are _____ $0
The following applies to both parts: Randall Company makes & distributes outdoor play equipment. Last year its sales were $12,000,000, nte income was $3,000,000, and the assets used were $15,000,000. 1) Asset turnover, the productivity component of return on investment, is ____ 20%, 80%, 25%, or 125% 2) Ret
The best label for formula (AP - SP) AQ is the _____. use variance, price variance, total cost variance, or efficiency variance please advise answer & why - thanks!
The best label for formula (AQ-SQ) SP is the _____. use variance, price variance, total cost variance, or wage rate variance please advise answer & why - thanks!
The favorable efficiency variance for direct labor inidicates that _____. a lower wage rate than expected was paid for direct labor, a higher wage rate than expected was paid for dircet labor, less direct labor hours were used during production than expected for actual output, or more direct labor hours were used during pr
In the service sector, ________ rather than machines usually represent(s) the capacity constraint, which underscores the importance of budgeting even in nonmanufacturing organizations. people, knowledge, familiarity with processes, or potential for sales
Sales total $200,000 when flexible (variable) costs total $150,000 and capacity-related (fixed) costs total $30,000. The break-even point in sales dollars is ____. $200,000, $120,000, $40,000, or $30,000 please advise answer & why - thanks!
The contribution margin equals________. revenues minus manufacturing support costs, revenues minus total manufacturing costs, revenues minus flexible (varible) costs, or revenues minus capacity-related (fixed) costs
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu
The following applies to all 4 parts: After conducting a market research study, Morla Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The estimated annual target sales volume is $20,000 interior door
Introduction: Kirsten Malon has found a way to profitably exploit her computer know-how. She has started a firm that offers consulting services for computer and software repair and analysis. Most of her customers have purchased computers or software systems with little vendor support and need help in installing and using th
When the greatest portion of a firms' assets are fixed rather than variable______. the firm enjoys lower financial risk, offering discounts during non-peak times will generally increase profits, incremental costs will also be proportionately higher, or the firm should use full-cost pricing Please answer answer and why
When there is no plant capacity, considerations for a one-time special order include _________. expanding capacity with the use of subcontractors, temporarily dropping another product, authorizing overtime at time-and-half of the current wage rate, or all of these Please advise answer & why - again thanks much!
The following applies to both parts: Jerry's 5-year Chevy Geo Prism requires $3,000 in estimated repairs. His friend suggested that he buy a 5-year Honda Civic for the $3,000 cash. The following is the estimated costs for the two cars: Chevy Geo Prism
Units of production are most appropriate as a support assignment base when _____. several well-differential products are manufactured, only one product is manufactured, direct labor costs are low, or factories produce a complex and varied mix of products I belive - factories produce a complex and varied mix of products
Different products consume different proportions of manufacturing support costs because of differences in all of the following except - sales prices, customers' customization specifications, setup times, or product design I believe - sales prices - is the answer. Please advise of answer and why. Thanks!
Activity costs are described as ________ over the long run because management adjusts the amount of resources employed to correspond to the demand for those resources. fixed, varible, committed, or non-discretionary
A key reason for assigning selling and distribution costs to products for analytical purposes is that -- all direct costs must be assigned, different processes, products and/or customers require different qualtities of selling and distribution activtities, customers demanded it, or controllers demanded it I believe - a
Company X is a small firm innovative in the production and sale of electrical business products. The company is well known for its attention to quality and innovations. During the past 15 months, a new product has been under development that allows users handheld access to email and video images. Company X code named the
The following applies to the following two parts: A company manufactures pipes and applies manufacturing support costs tp production at a predetermined rate of $15 per direct labor hour. The following data are obtained from the accounting records for June 20x2: Direct materials