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2 years ago

Matt co. is the lessor in connection with an operating lease. matt co. would record:

1 answer:

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Matt co. is the lessor in connection with an operating lease. matt co. would record a depreciation expense. The lessor records it as a depceciation expense becuase they are using a stright-line lease as a source of revenue. As the operation lease declines, it will keep showing as a depreciation on their balance sheets.

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A firm hires labor, capital, and land to produce grapefruits. currently the marginal product of the last unit of labor input is

umka21 [38]

Answer:

$100

Explanation:

the marginal product per dollar spent on labor = 40 units / $20 = 2 units per dollar

the marginal product per dollar spent on capital = 60 units / $30 = 2 units per dollar

the marginal product per dollar spent on land = 2 = 200 / $X

$X = 200 / 2 = 100 ⇒ the cost per unit of land is $100

The marginal product per dollar spent on a factor of production (labor, capital or land) is MP(factor)/P(factor). It measures how many additional units of output can be obtained by spending $1 more in a factor of production.

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2 years ago

Which of the following statements best describes the law of diminishing marginal utility?

-BARSIC- [3]

The law of diminishing marginal utility states that as a person increases consumption of a good while keeping consumption of other products persistently then there is a drop in the marginal utility that person descends from consuming each extra unit of that product. So the answer is letter C.

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2 years ago

Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows

aliina [53]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 116.25*375

Allocated MOH= $43,493.75

b)

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

c)

Selling price= 55,993.75*1.3

Selling price= $72,791.88

d)

First, we need to calculate the activities rate:

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

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1 year ago

Adrian owns an older used car that is valued at about $1,000.

Liula [17]

Answer:

Purchasing insurance can help Adrian minimize risk. Adrian’s best decision in this case is to not buy the insurance because the policy is too expensive in relation to the value of his vehicle

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2 years ago

Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and Janu

Vera_Pavlovna [14]

Answer:

1. The selling price of the bonds is $590.976.46

2 .The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit

Cash $600,000

Bonds Payable $600,000

Explanation:

In order to calculate the selling price of the bonds we would have to calculate first the present value of particular and present value of interest, hence:

present value of particular=($600,000×0.414643)=$248,785.80

present value of interest=$600,000×4%13.007936=$312,190.46

Therefore, selling price of the bonds=present value of particular+present value of interest

1. Selling price of the bonds=$248,785.80+$312,190.46=$590.976.46

2. The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit

Cash $600,000

Bonds Payable $600,000

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2 years ago