Becky was asked to divide a rectangle into 4 equal pieces and to shade one of those pieces. is becky right or not?

Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32

qwelly [4]

Answer: Old machine should be replaced.

Explanation:

The variable manufacturing cost will reduce by:

= 624,000 - 524,000

= $100,000

Over a period of 5 years this will be:

= 100,000 * 5

= $500,000

Selling the old machine would bring in $32,000:

= 500,000 + 32,000

= $532,000

The cost of the new machine would reduce this gross benefit by:

= 532,000 - 455,100

= $76,900

<em>Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought. </em>

4 0

2 years ago

module 3 BlockWood Inc. has been providing raw materials to Couches Corp., a furniture company. The management at Couches recent

maria [59]

The correct answer to this open question is the following.

You forgot to include the options for this question. However, we can answer the following.

This scenario best illustrates forward integration.

This is a case of forward integration because BlockWood Inc., which was facing similar difficulties with other buyers too, eventually stopped supplying raw materials and took to manufacturing furniture instead. SO they decided to fabricate their own furniture.

Companies make this decision as a process of vertical integration to expand and grow their business. In this case to produce and control their own products, eliminating the retailer that had decided to pay less money for the raw materials.

So now, Blockwood Inc. has the challenge to design and sell the products it is fabricating.

6 0

2 years ago

A plant produces aluminum, facing costs of C(A) = \frac{A^2}{10}, where A is the number of aluminum units produced, and selling

slavikrds [6]

Answer:

$10

Explanation:

We are to account for external costs in production, since we are asked to find optimal tax.

Given:

$C(A) = \frac{A^2}{10}$

We now have:

$C(A) = \frac{A^2}{10} + \frac{A^2}{20}$

A represents number of aluminum units produced, let's find A, since the margnal cost is $30.

Thus,

$30 = \frac{A}{5} + \frac{A}{10}$

$30 = \frac{2A + A}{10}$

$300 = 3A$

$A = \frac{300}{3}$

$A = 100$

Let's equate the private marginal cost with the marginal revenue of each unit in order to achieve this amount of produced units with tax, t.

We have:

$30 - t = \frac{A}{5}$

Substituting 100 for A above, we have:

$30 - t = \frac{100}{5}$

30 - t = 20

t = 30 - 20

t = 10

Therefore, the socially optimal tax on aluminum is $10 per unit

8 0

2 years ago

Holbrook, a calendar year S corporation, distributes $51,700 cash to its only shareholder, Cody, on December 31. Cody's basis in

vfiekz [6]

Answer;

AAA account balance after distribution was 0

AEP account balance after distribution was 0

Cordy account balance after distribution was $18,095

Explanation:

Holbrook corporation

From AAA account

Distribution from AAA account 8,000 not taxable

Effect on stock basis (8000)

Balance after distribution 0

From AEP account

Distribution from account 7,755 is a taxable dividend, in which it doesn't affect stock basis because it is from a previous S-corporation.

Effect on stock basis 0

Balance after distribution 0

From Cody’s stock basis

Distribution from account 20,680

(51,700-23,265-7,755)

Effect on stock basis (20,680)

Balance after distribution

(62,040-23,265-20,680)= $18,095

6 0

2 years ago

Read 2 more answers

The accounting scandals of the early 2000s led many people to question the legitimacy of: ratio analysis as a means of evaluatin

STatiana [176]

Answer:

<h2>The accounting scandals of the early 2000s</h2>

led many people to question the legitimacy of:

allowing an accounting firm to do both consulting and auditing work for the same company.

Explanation:

1) Enron and WorldCom fell from grace during the scandal. And Sarbanes Oxley Act of 2002 was introduced to regulate the practise of auditing, which was before self-regulated.

2) People felt that accounting firms were getting so much revenue from consulting that they did not pay much attention to their auditing work.

3) They also felt that the consulting relationship was jeopardizing their responsibilities and commitments as independent auditors.

4) Since they were involved in consulting and offering management services, they paid a lip service to their main responsibilities and directly compromised their positions as verifiers of the truth and fairness in the presentation of financial statements.

5) According to Paul Krugman of The New York Times, “the Enron debacle is not just the story of a company that failed; it is the story of a system that failed. And the system didn’t fail through carelessness or laziness; it was corrupted.” People felt that the corruption arose from the performance of these separate services by the same auditing personnel and firm.

5 0

2 years ago