Answer:
b. and d.
Explanation:
Amanda is not required to pay any tax, as She is earning less than $12200s. And, Jason as well cannot be asked to pay tax as he is earning less than the required limit. However, Greg and Erin are required to file their returns, as they are earning more than the allowed free limit.
<span>The AICPA rules would enforce that he is not allowed to join the board since he would be considered a firm professional. This would prevent a conflict of interest where he would serve as a director of a client. The AICPA is the American Institute of Certified Public Accountants.</span>
Answer:
$458,000
Explanation:
The computation of the total production cost in case of 85,000 toys are produced
The fixed cost is
= Total manufacturing cost - total variable cost
= $360,000 - $140,000
= $220,000
And, the variable cost per unit is
= $140,000 ÷ 50,000 toys
= $2.8
So for 85,000 toys, the total production cost is
= Fixed cost + Variable cost × variable cost per unit
= $220,000 + 85,000 toys × $2.8
= $220,000 + $238,000
= $458,000
Answer:
The correct answer is option (c).
Explanation:
Solution
From the question sated above the answer is, Firms or organisation decrease inventory because the more we spend on inventory, the more we will need to spend on the other related inventory expenditures.
The reason is because if the inventory is kept full or complete, then the cost related or connected with the maintenance of the inventory increases or goes up and it is not beneficial for the company itself.
Answer:
Year Cashflow [email protected]% PV [email protected]% PV
$ $ $
0 (1,100) 1 (1,100) 1 (1,100)
1-8 47.4 5.3349 252.87 7.0197 332.73
8 1,000 0.4665 465.5 0.7894 789.4
NPV (381.63) NPV 22.13
Kd = LR + NPV1/NPV1+NPV2 x (HR – LR)
Kd = 3 + 22.13/22.13 + 381.63 x (10 – 3)
Kd = 3 + 22.13/403.76 x 7
Kd = 3 + 0.38
Kd = 3.38%
Explanation:
Cost of debt is calculated based on internal rate of return formula. In year 0, we will consider the current market price of the bond as cashflow. In year 1 to 8, we will consider the after-tax coupon as the cashflow. The after-tax coupon is calculated as R(1 - T). R is 6% x $1,000 = $60 and tax is 21%. Thus, we have $60(1 - 0.21) = $47.4. then we will discount the cashflows for 8 years so as to obtain the internal rate of return. The internal rate of return represents cost of debt.
