All categories

2 years ago

If the lease factor is given as 0.00065, what interest rate is that equivalent to?

1 answer:

5 0

As a handy tip, we were told that in order to convert the lease factor of a certain amount or transaction to interest rate, we just have to multiply the value by 2, 400.
interest rate = (0.00065)(2400) = 1.56%
Thus, the answer for this item is 1.56%.

You might be interested in

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f

Alex17521 [72]

Answer:

Identification of True or False Statements:

1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.

A. True

2. A process cost system is used when each finished unit is indistinguishable from another.

A. True

3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting.

A. True

4. In a process cost system, costs are tracked by individual jobs.select between

False

5.Job order costing and process costing track different manufacturing cost elements.

B. False

6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.

A. True

7. Costs flow through the accounts in the same basic way for both job order costing and process costing.

A. True

8. In a process cost system, only one work in process account is used.

A. True

9. In a process cost system, costs are summarized in a job cost sheet.

B. False

10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.

A. True

Explanation:

A process costing system is a method of collecting and assigning manufacturing costs to the units produced. It is used by companies that produce similar or identical units of product in batches employing a consistent process. The unit cost is arrived at by averaging units produced to the total cost of the process.

5 0

2 years ago

During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions. Income from operati

Free_Kalibri [48]

Answer:

a. Taxable Income = $42,000

b. Taxable Income = $28,000

Explanation:

Given

Income from operations $660,000

Expenses from operations $760,000

Dividends received from Brown Corporation $240,000

Taxable Income is calculated

Dividend received + Income from operations - Expenses from Operations

Taxable Income = $240,000 + $660,000 - $760,000

Taxable Income = $140,000

Swallow Corp owns 12% of Browns Corporation stock;

And 12% is not up to 20% owned by Browns Corporation.

So. The Dividend Received is 70% of $140,000

Dividend = $98,000

Taxable Income = $140,000 - $98,000

Taxable Income = $42,000

Dividend Received + Taxable Income (ii) = Taxable Income (i)

Where Taxable Income (I) = $140,000

Calculating Dividend

Dividend = 80% of $140,000

Dividend = $112,000

Taxable Income = $140,000 - $112,000

Taxable Income = $28,000

8 0

2 years ago

Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne

VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0

2 years ago

Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three depart

meriva

Answer:(1)unit to be accounted for $730,000 (2) Equivalent unit of production Direct Materials $750,000, conversion cost $742,800 (3) unit cost for Direct materials $8, unit conversion cost $1.39 Total manufacturing cost $7,838,400 (4)unit accounted for $730,000, cost assigned to unit in ending inventory $12,800,journal entry Dr: work in process plate cutting $7,838,400, Cr: Work in process welding $7,838,400

Explanation:

(1) Physical flow schedule

Unit to be accounted for

Beginning work in process 750,000

---------------

Total unit accounted for. 750,000

Less: Ending inventory. 20,000

--------------

Unit accounted for transfer out. 730,000

(2)

Direct Materials. Conversion cost

Transfer out 730,000. 730,000

WIP(20,000 * 100%) 20,000

(20,000 * 64%) 12,800

-------------- -------------

750,000. 742,800

---------------- --------------------

(3) Unit cost of production

Unit Direct Materials Cost = Total material cost / Equivalent cost

= 6,000,000 / 750,000

= $8

Unit conversion cost = unit conversion cost / Equivalent unit of conversion cost

Unit conversion cost = Direct Labour + Cost of inspection

= 732,000 + 299,200

= 1,031,200 / 742,800

= 1.388

= $1.39

Total manufacturing cost

Direct Materials 6,000,000

Add:Purchases. 800,000

Add:Direct labour. 732,000

-----------------

Prime cost. 7,532,000

Add: Overhead. 299,200

Add: Beginning work in process 20,000

Less: Ending work in process. 12,800

---------------

Total manufacturing cost. 7,838,400

-----------------

(4) Unit accounted for transfer out = $730,000

Cost assigned to unit in ending inventory = $12,800

Journal entry

Dr: work in process plate cutting $7,838,400

Cr: Work in process welding $7,838,400

8 0

2 years ago

Jacoby Company received an offer from an exporter for 30,000 units of product at $15 per unit. The acceptance of the offer will

tresset_1 [31]

Answer:

The correct option here is D) $450,000.

Explanation:

The differential revenue from the acceptance offer is the additional amount of revenue that will be generated without affecting the revenue generated from the domestic sales in the normal course of operations.

The differential revenue from acceptance of offer can be calculated as -

= Selling price per unit per offer x number of units per offer

= $15 x 30,000

= $450,000

Therefore $450,000 is the differential revenue from the acceptance of offer.

6 0

2 years ago