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2 years ago

Which of the following is an example of a psychological pricing strategy

1 answer:

6 0

An example of a psychological pricing strategy would be to mark somethings price as $19.95, instead of $20.00. This way it psychologically looks like less money to spend.

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Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations. (1) D

alexandr402 [8]

Answer:

$74,000

Explanation:

The computation of the ending balance in the Work in Process account is shown below:

= Beginning balance in work in process + direct material + direct labor + manufacturing overhead applied - jobs completed and transferred

= $48,000 + $154,000 + $94,000 + $236,000 - $458,000

= $74,000

We simply applied the above formula

7 0

2 years ago

On july 1, tau, inc., purchased a machine for $12,000 and issued in payment a one-year note payable for $13,200. on august 31, t

polet [3.4K]

I believe the proper entry for the end of the year should be

Interest Expense 200
Discount on Notes Payable <span>200

Interest expense represents the additional principle amount of Debt, loan, or Bond while discount on notes payable while the discount on notes payable represents a contra liability that occurs when notes payable has lesser value compared to the face amount.</span>

7 0

2 years ago

Carey, a single taxpayer, purchased a rental house in 2018, which he actively manages. During 2018, Carey had a loss of $14,000

noname [10]

Answer:

$6,000

Explanation:

First, Carey's allowable deductions repersents 'real estate loss allowance. The real estate loss allowance is an allowance or tax reduction made available to taxpayers who are also owners of rental properties in the U.S.

The specific allowance states that if the adjusted gross income of the owner of the rental property is $100,000 or less, then the taxpayer is allowed a deduction of $25,000. However, this begins to reduce as the adjusted gross income approaches $150,000 and the allowance is completely eliminated when the income exceeds $150,000

Based on this explanation, Carey's Adjusted Gross Income= $138,000, higher than $100,000 but less than $150,000

The calculation= 50% ($150,000- maximum allowable adjusted gross income- $138,000 - Carey's reported adjusted gross income)

=0.50 ($12,000)

= $6,000

7 0

2 years ago

You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years, you rec

Slav-nsk [51]

Answer:

a) Total gross return = 459.3%

b) Average annual return = $4,195

Explanation:

Let's begin by listing out the information given us:

Number of shares = 1000, purchase price = $3 per share,

dividend = 7 cents = $0.07 per share per year,

time = 4 years, sale price = $16.50 per share,

brokerage commission = 4%

Cost of shares purchased = number of shares * purchase price

Cost = 1000 * 3 = 3,000

Cost = $3,000

I purchased shares worth $3,000 on January 1, 2006

Total dividend received = dividend * number of shares * time

Total dividend = 0.07 * 1000 * 4 = $280

Over the course of 4 years, I received $280 in dividend

Price of share sale = number of shares * sale price

Price of share sale = 1000 * 16.50 = $16,500

brokerage commission = 4% of Price of share sale

brokerage commission = 0.04 * 16500 = $660

a) Total gross return = (dividend + price of share sale - cost of shares purchased) ÷ cost of shares purchased

Total gross return = (280 + 16500 - 3000) ÷ 3000

Total gross return = 13780 ÷ 3000 = 4.593

Total gross return = 4.593 * 100%

Total gross return = 459.3%

This means the investment made a profit of over 400% (four times the amount spent in purchasing the shares)

N.B: Total gross return does not include fees and expenses such as brokerage costs

b) Average annual return = Returns during the specified period ÷ time

Returns during the specified period = dividend + price of share sale = 280 + 16500 = $16,780

Average annual return = 16780 ÷ 4 = 4195

Average annual return = $4,195

3 0

2 years ago

Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most r

antiseptic1488 [7]

Answer:

$9,000

Explanation:

Calculation of the amount that Deb must include in her gross income

Total assets $264,000 -Remaining loans $255,000 =$9,000

Therefore the amount that Deb must include in her gross income would be $9,000. Hence a discharge of indebtedness will not be taxable in a situation where the taxpayer is insolvent before and after the debt might have been forgiveness and in a situation where the the discharge of indebtedness tend to makes the taxpayer solvent, the taxpayer will tend ro recognizes the taxable income to the extent of his solvency.

3 0

2 years ago