on january 1, 2020, corgan company acquired 80 percent of the outstanding voting stock of smashing, inc., for a total of $980,000 in cash and other consideration. at the acquisition date, smashing had common stock of $700,000, retained earnings of $250,000, and a noncontrolling interest fair value of $245,000. corgan attributed the excess of fair value over smashing's book value to various covenants with a 20-year remaining life. corgan uses the equity method to account for its investment in smashing. during the next two years, smashing reported the following: net income dividends declared inventory purchases from corgan 2020 $ 150,000 $ 35,000 $ 100,000 2021 130,000 45,000 120,000 corgan sells inventory to smashing using a 60 percent markup on cost. at the end of 2020 and 2021, 40 percent of the current year purchases remain in smashing's inventory. compute the equity method balance in corgan's investment in smashing, inc., account as of december 31, 2021. prepare the worksheet adjustments for the december 31, 2021, consolidation of corgan and smashing.

Answers

Answer 1

Retention of earnings and the fair value of the noncontrolling interest in the common stock of Smashing of $245,000. Removal of the annual $12,250 excess of fair value over book value allotment.

How is the fair value of NCI determined?

To calculate the NCI of the income statement, multiply the subsidiary's net income by the NCI percentage. Consider, for instance, that the company owns 70% of the subsidiary. Imagine a minority partner owning 30% of the company's subsidiaries and a $1 million net profit. $300k would be the NCI, which is determined as $1M x 30%.

Initial investment cost = 80% x $700,000 = $560,000

Fair value over book value in excess = $245,000

Allocation per year = Excess of fair value over book value / Remaining covenant life

Allocation per year = $245,000 / 20 years = $12,250 per year

Beginning balance = $560,000

Add: Share of Smashing's net income = 80% x $150,000 = $120,000

Add: Inventory markup on purchases = 80% x 40% x $100,000 x 60% = $19,200

Less: Share of Smashing's dividends declared = 80% x $35,000 = $28,000

Less: Allocation of excess of fair value over book value = $12,250

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Answer 2

Answer:

the answer is

Explanation:

Downstream intra-entity profit adjustments when parent uses equity method and a noncontrolling interest is present)​Consideration transferred by Corgan​      ​$980,000​

Noncontrolling interest fair value​​245,000​

Smashing’s acquisition-date fair value​​1,225,000​

Book value of subsidiary     ​​​950,000​

Excess fair over book value​​​275,000

Excess assigned to covenants​     ​ 275,000​

Remaining useful life in years​       ​      ÷ 20 ​Annual amortization​      $13,750 ​2020 Ending Inventory Profit Deferral▪ Cost = $100,000 ÷ 1.6 = $62,500▪ 

Intra-entity gross profit = $100,000 – $62,500 = $37,500▪

 Ending inventory gross profit = $37,500 × 40% = $15,000 ​2021 Ending Inventory Profit Deferral ▪ Cost = $120,000 ÷ 1.6 = $75,000▪ Intra-entity gross profit = $120,000 – $75,000 = $45,000▪ Ending inventory gross profit = $45,000 ´ 40% = $18,000​ ​a.  Investment account:​​​​Consideration transferred, January 1, 2020​​$980,000​​​Smashing’s 2020 net income (150,000× 80%)​$120,000​​​​Covenant amortization (13,750 × 80%)​(11,000)​​​​Ending inventory profit deferral (100%)​  (15,000)​​​Equity in Smashing’s earnings​​94,000​​2020 dividends (35,000*80%)​​     (28,000)​​Investment balance 12/31/20​​$1,046,000​​​Smashing’s 2021 net income (130,000× 80%)​$104,000​​​​Covenants amortization (13,750 × 80%)​(11,000)​​​​Beginning inventory profit recognition​15,000​​​​Ending inventory profit deferral (100%)​  (18,000)​​​​Equity in Smashing’s earnings​​90,000​​     2021 dividends (45,000*80%)​​         (36,000)​​Investment balance 12/31/21​​$1,100,000   


    b.  12/31/21 Worksheet Adjustments

Entry *G

​Investment in Smashing​15,000​​​

Cost of goods sold​​  15,000

​​​​​Entry S

Common stock—Smashing​                                       700,000​​

Retained earnings—Smashing​365,000​​​

Investment in Smashing​​852,000​​

Noncontrolling interest​​213,000

 Entry A

​Covenants​​261,250​​​    
 Investment in Smashing​​209,000

​​Noncontrolling interest​​52,250 

Entry I​

Equity in earnings of Smashing (above)​90,000​​​

Investment in Smashing​​90,000​

Entry D​ ​Investment in Smashing ​36,000​​​

Dividends declared​​36,000        (45,000*80%)

 Entry E 

Amortization expense​13,750​​

Covenants​​13,750​​​​​

Entry TI     Sales​​​​      120,000​​​     Cost of goods sold​​   120,000 

Entry G​

Cost of goods sold​​18,000​​​  Inventory​​18,000 


Related Questions

Hypothesis testing is a method of using data relevant to a claim to test the likelihood that the claim is accurate. Which of the following is an ethical use of hypothesis testing in a business situation?
As an ethical business owner, you want to find out if the claims you are making about the product you market are accurate. You conduct one or more hypothesis tests to check.
You did not do something to evaluate product condition

Answers

The ethical use of hypothesis testing in a business situation is to find out if the claims being made about the product are accurate. Hypothesis testing is a way of determining whether or not a hypothesis is accurate.

Hypothesis testing is an important tool for businesses, as it allows them to test their ideas and theories about the market and the products they sell. This can help businesses to make better decisions about how to market and sell their products, as well as identify potential areas for improvement. It involves a set of statistical methods used to determine whether or not an effect or relationship is real, based on data.

In conclusion, an ethical use of hypothesis testing in a business situation is to test the accuracy of claims made about the product.

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David works at Klambunk Motors, an automobile manufacturing company. Once a new automobile has been designed by the design team, David determines and finalizes all the activities required to manufacture and deliver the new automobiles to showrooms. In this scenario, David determines the _____ needed to transform the company's inputs into outputs

Answers

Option D. In this scenario, David determines the processes necessary to transform the company's inputs into outputs. A process is a set of related activities that transform inputs into outputs and thereby create value.

Automobiles, a are four-wheeled vehicles primarily intended for transportation of people, usually powered by internal combustion engines that use volatile fuels.

A modern automobile is a complex technical system that uses/utilizes subsystems with specific design functions. Some of these include thousands of components derived from existing and new technological breakthroughs, such as electronic computers, high-strength plastics, and new alloys of steel and non-ferrous metals. Factors such as air pollution, safety regulations, and competition among manufacturers worldwide have led to the emergence of multiple subsystems.

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Complete question:

David works at Klambunk Motors, an automobile manufacturing company. Once a new automobile has been designed by the design team, David determines and finalizes all the activities required to manufacture and deliver the new automobiles to showrooms. In this scenario, David determines the _____ needed to transform the company's inputs into outputs.

a. divestiture

b. servicescapes

c. marketing plan

d. processes

Bill and Hillary each buy a house and take out a $100,000 loan. His house is in New York and her house is in Washington D.C. Bill takes out a conventional 30 year fixed rate mortgage, and Hillary opts for a conventional 15 year fixed rate mortgage. Which of the following correctly summarizes how Bill's mortgage is different from Hillary's (all other things being equal)?
- Bill's 30 year mortgage has a higher interest rate, lower
monthly payments and higher overall interest payments.
It builds equity more slowly than Hillary's mortgage.
- Hillary's 15 year mortgage has a higher interest rate, higher
monthly payments and higher overall interest payments.
It builds equity more slowly than Bill's mortgage.
- Bill's 30 year mortgage has a lower interest rate, lower
payments and lower overall interest payments. It builds
equity more quickly than Hillary's mortgage.
- None of the answers are correct

Answers

The difference between Bill's mortgage and Hillary's mortgage (assuming all other things being equal) is that Bill's 30-year mortgage has a lower interest rate, lower payments, and lower overall interest payments. It builds equity more slowly than Hillary's mortgage.

A fixed-rate mortgage is a type of mortgage in which the interest rate stays the same for the life of the loan. It is one of the most traditional types of mortgage loans. They are usually the most common types of loans given to homebuyers. Fixed-rate mortgages usually come in 15-year or 30-year terms. In addition, they are available in other lengths as well. A conventional mortgage is a type of mortgage loan that is not backed by a government agency such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

A conventional loan is a home loan that is not backed by the government, which means that the lender takes on the risk of the borrower defaulting on the loan. Equity is the value of your house minus the amount you still owe on the loan. It is essentially the amount of the house that you "own" outright. Over time, as you pay off your mortgage, your equity in the property will grow. Equity can be built in several ways, including making regular mortgage payments, making extra payments on the principal, and taking advantage of home price appreciation.

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assume that registers $s0 and $s1 hold the values 0x8000000000000000 and 0xd000000000000000, respectively. what is the value of $t0 for the following assembly code? add $t0, $s0, $s1

Answers

The value of $t0 for the given assembly code is 0x5000000000000000.

This is because the instruction "add $t0, $s0, $s1" adds the values held in the registers $s0 and $s1 and stores the result in $t0. Therefore, $t0 will have a value of 0x8000000000000000 + 0xd000000000000000 = 0x5000000000000000.

In more detail, the instruction "add $t0, $s0, $s1" adds the values held in the registers $s0 and $s1 and stores the result in $t0. In this case, $s0 holds the value 0x8000000000000000 and $s1 holds the value 0xd000000000000000.

When added together, these values are equal to 0x5000000000000000. Therefore, $t0 will have a value of 0x5000000000000000. This is because the instruction "add" adds the two values together and stores the result in the target register ($t0).

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Ben recommends that Julia implement culture change by utilizing which of the following? Multiple Choice
- role modeling, training, and coaching - physical design - rites and rituals - stories, legends, and myths
- formal statements

Answers

Ben recommends that Julia implement culture change by utilizing role modeling, training, and coaching.

What is Culture Change?

Culture change refers to an organization's effort to change its fundamental values, practices, attitudes, and organizational behaviors. The different ways to implement culture changes are: Role modeling, training, and coaching.

Ben recommends that Julia implement culture change by utilizing role modeling, training, and coaching. This is because these three methods are effective at getting everyone on the same page and fostering a common culture that is more in line with the company's objectives.

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Why are food trucks' costs typically lower than those of a traditional brick-and-mortar
restaurant?

Answers

Answer:

Being mobile, food trucks can simply drive to a more profitable site if a location is not cutting it. Food trucks don't bear the larger overhead of brick-and-mortar restaurants. The costs of wide-ranging staff, utilities and property taxes of typical brick-and-mortar restaurants can really stack up.

at a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110. since total revenue by the price decrease, demand must be .

Answers

At a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110. Since total revenue remains the same by the price decrease, demand must be unit elastic.

The total revenue (TR) for a product is calculated by multiplying the price (P) by the quantity demanded (Q): TR = P x Q.

At a price of $11, quantity demanded is 90, so TR = $11 x 90 = $990.

At a price of $9, quantity demanded is 110, so TR = $9 x 110 = $990.

Since the total revenue remains the same after the price decrease, the demand must be unit elastic. This means that the percentage change in quantity demanded is equal to the percentage change in price. In other words, a 10% decrease in price led to a 10% increase in quantity demanded, resulting in no change in total revenue.

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which of the following statements is most likely to be true? responses the chick and the goose have the same number of thoracic vertebrae. the chick and the goose have the same number of thoracic vertebrae. the most anterior expression of hoxc6 is the eighth vertebra in mammals. the most anterior expression of hoxc6 is the eighth vertebra in mammals. hoxc6 is expressed in the same embryonic segments in birds and mammals. hoxc6 is expressed in the same embryonic segments in birds and mammals. hoxc6 is expressed in the same vertebra at the anterior end of all bird embryos.

Answers

The most likely statement to be true is that "the most anterior expression of Hoxc6 is the eighth vertebra in mammals".

Hoxc6 is a part of the Hox gene family which is involved in specifying the positional identity of vertebrae in the developing spinal cord. The Hox genes play an essential role in determining the identity of vertebrate embryonic segments by specifying the developmental fates of the cells within these segments. They are expressed in a characteristic pattern along the anterior-posterior axis of the embryo.

In mammals, the most anterior expression of Hoxc6 is the eighth vertebra. This means that Hoxc6 is expressed in the eighth vertebra and all vertebrae posterior to it. It is also expressed in the spinal cord segments that innervate these vertebrae.

On the other hand, birds have a different number of vertebrae than mammals, and Hoxc6 is not expressed in the same vertebra at the anterior end of all bird embryos.

Therefore, the most likely statement to be true is that "the most anterior expression of Hoxc6 is the eighth vertebra in mammals".

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market conditions and technological innovations leading to on-demand services include all the following except: a. smartphone-connected consumers b. private data centers c. simple and secure purchasing power d. location-based services

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Market conditions and technological innovations leading to on-demand services are related to smartphone-connected consumers, private data centers, and location-based services except option c) simple and secure purchasing power. Option c) is the answer.

Market conditions are the external and internal elements that influence a company's performance in a particular market. The objective of analyzing the market's conditions is to identify opportunities and risks. Technological innovation refers to the process of creating new technologies, improving existing ones, or merging existing technologies to generate something new.

The purpose of technological innovation is to produce new goods, services, or processes that result in more efficient and effective business operations. On-demand services refer to a service delivery system that allows customers to get what they want whenever they want it. The system's primary objective is to provide an almost instant service or product delivery as per market conditions.

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Luna is going to an interview. She only has an online portfolio. What will she need to bring with her in order for the salon owner to view her portfolio?

A. a charged device with the portfolio bookmarked and ready

B.pictures on her phone taken of her online portfolio

C.a link written on a post-it for the owner to visit

D.a written description of everything in your portfolio

Answers

Option (d), Luna is headed to an interview. Her sole available portfolio is online. In order for the salon owner to evaluate her portfolio, she will need to bring a written description of everything in it.

Write about a portfolio.

A portfolio is a useful collection of carefully chosen student work that displays a range of performances throughout time and highlights the learner's efforts, development, and achievement of significant learning objectives.

While conducting an interview, how should an internet portfolio be presented?

If the environment is fully digital, show as much digital content as you can. If you don't have all the digital but still want to show that you understand it, show what you do have and anything that exhibits creative thinking. Display content from all media types, including print, TV, digital, mobile, and social, if the location is integrated.

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david is trying to provide a visible means of support to develop an ethical culture in his company. he can do so by creating

Answers

David can create a visible means of support to develop an ethical culture in his company by implementing a code of conduct and making it available to all employees.

This code should include expectations for ethical behavior, guidelines for decision-making, and consequences for not adhering to the code. By reinforcing these values and expectations, it will create a culture where ethical behavior is not only accepted, but encouraged.

A code of conduct provides the framework for the values and expectations within an organization. It should clearly state the expectations of ethical behavior and decision-making, as well as outline any potential consequences for not adhering to the code.

By making this code available to all employees, it provides a visible means of support for ethical behavior and decision-making. This also shows employees that their actions and decisions have consequences, encouraging them to make ethical choices.

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management desires an ending finished goods inventory each quarter of 20% of the next quarter's sales volume. each unit requires 3 kilograms of materials at a cost of $5 per kilogram. management desires an ending raw materials inventory each quarter of 10% of the next quarter's production needs. what is the budgeted production (in units) in q2?

Answers

A unit requires 3 kilograms of materials, which costs $5 per kilogram. Management also desires an ending raw materials inventory every quarter that is 10% of the next quarter's production needs. Management has a goal of achieving an ending finished goods inventory every quarter that is 20% of the next quarter's sales volume.

In Q2, what is the budgeted production in units?

Given data:Desired ending finished goods inventory per quarter = 20% of the next quarter's sales volume Desired ending raw materials inventory per quarter = 10% of the next quarter's production needs Cost of each unit of raw material = $5. Quantity of raw materials required per unit = 3 kilograms. Solution:Let the budgeted production in units be x. Then:Materials required per unit = 3 kilograms Cost of 1 kilogram of raw material = $5. So, the cost of raw materials required per unit = $5 × 3 = $15. Total cost of raw materials required for x units = $15x. Desired ending raw materials inventory per quarter = 10% of the next quarter's production needs Desired ending raw materials inventory in Q2 will be 10% of the production needs of Q3.In other words, desired ending raw materials inventory in Q2 = 10% of (production needs in Q3) = 0.1Q3. Production needs in Q3 will be x + desired ending finished goods inventory in Q2 (as this will be sold in Q3).Therefore, desired ending raw materials inventory in Q2 = 0.1 (x + 0.2Q3)But, Q3 is unknown.Now, we know that materials required for production = quantity of production × materials required per unit Desired ending finished goods inventory per quarter = 20% of the next quarter's sales volume Desired ending finished goods inventory in Q2 will be 20% of the sales volume in Q3.So, desired ending finished goods inventory in Q2 = 0.2Q3 In Q2, the following units are produced:x units will be sold in Q3So, the units in the finished goods inventory at the end of Q3 = 0.2Q3. The total units will be:x + 0.2Q3 = 0.2Q3 + xThe production needs for Q3 will be:x + 0.2Q3 - units sold in Q3 = desired ending finished goods inventory for Q3 (20% of Q4)Therefore,x + 0.2Q3 - x = 0.2Q30.2Q3 = x. Production needs in Q3 = 0.2Q3 + x.Therefore,desired ending raw materials inventory in Q2 = 0.1 (x + 0.2Q3) = 0.1 (0.2Q3 + x + 0.2Q3) = 0.04Q3 + 0.04x. Total cost of raw materials required for x units = $15x. Therefore, the total cost of raw materials required for Q2 will be $15x. Total cost of raw materials desired for ending inventory in Q2 will be the total cost of raw materials required for the production of 0.04Q3 units and 0.2Q3 units (which will be sold in Q3) = $15(0.04Q3 + 0.2Q3) = $3Q3. So, the total cost of raw materials required in Q2 will be:$15x + $3Q3. But, we know that production needs in Q3 = 0.2Q3 + x. Therefore, $15x + $3Q3 = $15x + $3(0.2Q3 + x) = $15x + $0.6Q3 + $3x = $18x + $0.6Q3. Now, budgeted production in units in Q2 = x = 0.6Q3/15 = Q3/25. Therefore, the budgeted production in Q2 is Q3/25 units.

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nikita enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $950. at this price, the bonds yield 6 percent. what must the coupon rate be on the bonds? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Nikita Enterprises has bonds on the market with annual payments, seven years to maturity, a par value of $1,000, and are selling for $950. If the bonds are yielding 6%, the coupon rate must be 6.95%.

The coupon rate on a bond refers to the annual interest paid to the bondholder in percentage form. It is calculated by dividing the annual interest payment by the par value of the bond.

To determine the coupon rate for the Nikita Enterprise bond, the formula for calculating bond yields must be used: $950 = $1000 / (1 + r)7.

Using algebra to solve for r, we can rewrite this equation as $950 * (1 + r)7 = $1000. Expanding the left side of this equation, we get $950 + $950 * r * 7 = $1000. Simplifying this, we have $950 * r * 7 = $50, so r = 0.0695 or 6.95%.Therefore, the coupon rate on the bonds is 6.95%.

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Give an example of a production process in which the short run involves a day or a week and the long run any period longer than a week. O A. Any production process where the fixed inputs are the only inputs that cannot be varied. This would include all but the largest scale production processes. B. Only the simplest production process, such as a lemonade stand, would have a long-run horizon of only one week. C. The very short run is a period less than a week. The short run is a period longer than a week but less than a year. And the long run is defined as a period of time longer than one year. Thus, there is no production process that meets the above criteria. D. Any process where it takes a week or longer to vary all inputs. Typically this would apply to a small business, such as a neighborhood restaurant or small retail store.

Answers

The correct example is:  Any process where it takes a week or longer to vary all inputs. Typically this would apply to a small business, such as a neighborhood restaurant or small retail store. (option D)

In a production process where it takes a week or longer to vary all inputs, the short run would involve a day or a week, while the long run would involve any period longer than a week.

This typically applies to small businesses such as neighborhood restaurants or small retail stores, where it may take a week or more to adjust all inputs such as labor, equipment, and supplies.

In such cases, the short run is limited by the fixed inputs that cannot be varied within a week, while the long run allows for greater flexibility in adjusting all inputs to optimize production.

In the short run, the business may be able to adjust the number of workers or inventory levels, but in the long run, they may be able to change the size of the physical space or invest in new equipment, which takes more time and planning.

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Compute the interest accrued on each of the following notes payable owed by Northland, Inc. on December 31:Use 360 days for calculations and round to the nearest dollar.Lender Date of Note Principal Interest Rate (%) TermMaple November 21 $23,000 10% 90daysWynam December 13 19,000 9% 60daysNahn December 19 21,000 12% 120days

Answers

In the following question, among the various parts to solve- Interest accrued on each of the following notes payable owed by Northland, Inc. on December 31 is Maple: $575, Wynam: $285 and Nahn: $840 respectively.

The given problem is of calculating the interest accrued on each of the following notes payable owed by Northland, Inc. on December 31. Let's calculate the interest on each note payable as follows:

1. Interest on Maple:Date of Note = November 21, 20XXTerm = 90 days Interest Rate = 10%Principal = $23,000

Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($23,000 × 10% × 90) / (360)Interest = $5752.

2. Interest on Wynam: Date of Note = December 13, 20XXTerm = 60 days Interest Rate = 9%Principal = $19,000

Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($19,000 × 9% × 60) / (360)Interest = $2853.

3. Interest on Nahn: Date of Note = December 19, 20XXTerm = 120 days Interest Rate = 12%Principal = $21,000Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($21,000 × 12% × 120) / (360)Interest = $840

Therefore, Interest accrued on each of the following notes payable owed by Northland, Inc. on December 31 is Maple: $575, Wynam: $285 and Nahn: $840 respectively.

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Is the inflation rate measured as the percentage change in a price index?

Answers

Yes, the Consumer Price Index (CPI) or the Producer Price Index are two common price indices that are used to calculate the inflation rate (PPI).

The inflation rate gauges the total percentage growth in an economy's level of prices for goods and services over time. Two widely used methods of measuring inflation are the Consumer Price Index (CPI) and the Producer Price Index (PPI). Whereas the PPI measures the average change over time in the prices received by producers for their goods and services, the CPI tracks the prices of a basket of goods and services that consumers purchase. Economists and decision-makers may watch changes in these indices to calculate an economy's inflation rate, which has a big impact on monetary policy, interest rates, and economic growth.

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to reduce product development time, caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through . a. an extranet b. an intranet c. a transportation business center d. a third-party, value-added network

Answers

To reduce product development time, Caterpillar connected its engineering and manufacturing divisions through an extranet. Thus, the correct option is A.

What is an Extranet?

An extranet is a private network that uses Internet technology and protocols to provide a company's customers, suppliers, and/or business partners with safe and secure access to its intranet. An extranet is a network that is separate from a company's public website but can be accessed via the internet.

A firewall is often used to create a secure private network that can be accessed via the internet. In conclusion, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through an extranet to reduce product development time.

Therefore, the correct option will be A.

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To comply with the regulations regarding customer identification programs, the minimum identifying information that must be obtained from each customer before opening an account includes:
I-name.
II-verbal assurance that the customer is of legal age.
III- a street address, unless the primary mailing address is a post office box located in the state of residence.
IV-a taxpayer identification number.
A)I and IV.
B)III and IV.
C)II and III.
D)I and II.

Answers

The minimum identifying information that must be obtained  when opening an account includes: name and a taxpayer identification number. (option A: I and IV)

The minimum identifying information that must be obtained from each customer before opening an account includes:

I - Name

III - A street address, unless the primary mailing address is a post office box located in the state of residence.

IV - A taxpayer identification number.

Therefore, the correct option is A) I and IV.

Verbal assurance that the customer is of legal age (option II) and a street address if the primary mailing address is a post office box located in the state of residence (option III) are not sufficient on their own to meet the regulations regarding customer identification programs.

A taxpayer identification number (TIN) is necessary for customer identification programs to help ensure compliance with various laws and regulations, including tax laws and anti-money laundering laws.

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When a price floor is above the equilibrium price ______________.A quantity demanded will exceed quantity suppliedB quantity supplied will exceed quantity demandedC the market will be in equilibriumD this is a trick question because price floors generally exist below the equilibrium price

Answers

A price floor is a government-imposed price control that sets a legal minimum on the price of a good or service. When a price floor is set above the equilibrium price, it causes a surplus in the market.

A) quantity supplied will exceed quantity demanded, resulting in a gap between the market price and the price floor. This surplus can cause inefficiencies in the market as suppliers will be unable to sell their entire inventory of goods or services.

A price floor above the equilibrium price can also lead to an increase in the cost of production for producers, as they may need to increase their prices to make a profit. In the long-term, this could lead to an increase in prices and a decrease in economic growth. In conclusion, when a price floor is set above the equilibrium price, it causes a surplus in the market and can lead to inefficiencies and an increase in the cost of production.

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why do most auditors use a substantive strategy instead of a reliance strategy for intangible assets

Answers

Most auditors use a substantive strategy instead of a reliance strategy for intangible assets because intangible assets lack physical existence and are not easily verifiable.

What are intangible assets?

Assets with an intangible component lack a physical component. They can be classified as either identifiable or unidentifiable.

Identifiable intangible assets have identifiable and easily separable values, such as copyrights, patents, and trademarks. Unidentifiable intangible assets, on the other hand, have no specific monetary value, such as company reputation and goodwill.

Auditors and intangible assets auditors must keep a record of the intangible assets because they represent an essential component of an organization's value.

Most auditors use a substantive approach rather than a reliance strategy for intangible assets because of their unique nature.

A substantive approach involves performing various tests on an organization's financial statements to assess the completeness and accuracy of the recorded data.

Auditors may choose to use statistical sampling or other data analysis methods in a substantive approach. They may also use data extraction and interrogation tools to test the data for irregularities, inconsistencies, or inaccuracies.

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Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 stx years from now. Which one of the following terms refers to the $5,3187 O Future vaiuae? O compound veluse O complex velue O Presint value O Factor value

Answers

The term that refers to the $5,3187 is Present value (PV). Option D is the correct answer.

Present value (PV) is the value on a given date of a future payment or series of future payments discounted to reflect the time value of money and other factors such as investment risk. Present value calculations are commonly used in finance and economics to determine the value of investments, such as bonds or stocks, or to determine the present value of an investment's future cash flows.

Basically, present value is used to calculate how much money needs to be invested today in order to achieve a desired future amount. In the given question, Katlyn needs to invest $5,318 today to be worth $8,000 six years from now. Thus, $5,318 is the present value (PV) in this scenario. So, the option D is the correct answer.

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retail sales are measured by . a.) collecting self-reported data from all retail outlets with over 10 employees b.) the census bureau c.) collecting self-reported data from chains of over 40 stores d.) the bureau of labor statistics.

Answers

Retail sales are measured by collecting self-reported data from chains of over 40 stores. Option C is correct.

Retail sales is a measure of how much product consumers buy from stores. Retail sales in the United States are measured by the Census Bureau. Retail sales are monitored by the US Department of Commerce, which publishes retail sales estimates once a month.

The data are compiled by gathering self-reported data from chains of more than 40 stores. The Bureau of Labor Statistics, on the other hand, conducts the Current Employment Statistics (CES) survey to provide an early estimate of monthly nonfarm payroll employment data.

In conclusion, option c) collecting self-reported data from chains of over 40 stores is correct.

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a company uses the dollar-value lifo inventory method. at the end of 2025 the cost index is 1.25 and the ending inventory at base year cost is $360,000. if 2025 beginning inventory at base year cost was $300,000, 2025 ending inventory at dollar-value lifo cost is:

Answers

The inventory made with the dollar info method has been calculated as $20400. The calculation has been attached in the image below:

Dollar-value LIFO is an accounting method used for inventory that follows the last-in-first-out model. Dollar-value LIFO uses this approach with all figures in dollar amounts, rather than in inventory units.

It provides a different view of the balance sheet than other accounting methods such as first-in-first-out (FIFO). In an inflationary environment, it can more closely track the dollar value effect of the cost of goods sold (COGS) and the resulting effect on net income than counting the inventory items in terms of units.

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Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:
Materials Labor Overhead
Work in process, May 1 $ 27,100 $ 44,154 $ 215,019
Cost added during May $ 164,605 $ 29,436 $ 143,346
Equivalent units of production 2,300 2,200 2,100
Required:
1. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)
2. Compute the total cost per equivalent whole unit. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)

Answers

The cost per equivalent unit for materials ($74.43), for labor ($41.98), and for overhead ($107.20). the total cost per equivalent whole unit is $223.61

1. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)
Materials:
Cost per equivalent unit =  (Work in process, May 1 + Cost added during May) / Equivalent units of production
= ($27,100 + $164,605) / 2,300 = $74.43
Labor:
Cost per equivalent unit = (Work in process, May 1 + Cost added during May) / Equivalent units of production
= ($44,154 + $29,436) / 2,200 = $41.98
Overhead:
Cost per equivalent unit = (Work in process, May 1 + Cost added during May) / Equivalent units of production
= ($215,019 + $143,346) / 2,100 = $107.20
2. Compute the total cost per equivalent whole unit. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)
Total Cost per equivalent unit = Cost per equivalent unit for Materials + Cost per equivalent unit for Labor + Cost per equivalent unit for Overhead
= $74.43 + $41.98 + $107.20 = $223.61

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You stay in a semi-urban setup and near your house, services for senior citizens are
extremely unreliable. How will you plan your service offering? What are the challenges you
will face while creating your service offering

Answers

To address the unreliable services for senior citizens in the semi-urban setup. A needs assessment can be conducted to identify the most pressing issues faced by the elderly community.

This information can then be used to develop a comprehensive service offering that caters to their needs. Challenges such as limited resources, lack of funding, cultural and language barriers, and inadequate support from the government or community may arise during the creation of the service offering. Overcoming these challenges will require collaboration with other organizations and stakeholders, leveraging resources, and using creative solutions such as technology to improve service delivery and outreach.

The goal should be to create a sustainable network of support for the elderly population in the community.

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after focusing on its vision statement, gm began strategic planning efforts. who at the company strategically plans and what is the timeline?

Answers

The people at GM who come up with strategic plans are the Top managers and the timeline is 1 - 5 years.

Who comes up with strategic plans in a company ?

Strategic planning is typically led by top-level executives at GM, including the CEO, CFO, and other members of the senior leadership team. These individuals are responsible for setting the company's overall strategic direction and ensuring that it is aligned with the company's vision and long-term goals.

In the case of GM, the timeline for strategic planning efforts will likely depend on a variety of factors, including the company's current market position, competitive landscape, and long-term growth goals.

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multiple choice question during which stage of product development does a company estimate costs, identify pricing, and evaluate demand for the product in order to determine profitability? multiple choice question. product launch business analysis test marketing idea generation

Answers

The stage of product development during which a company estimates costs, identifies pricing, and evaluates demand for the product in order to determine profitability is the B: business analysis stage.

During the business analysis stage, the company conducts a thorough analysis of the potential profitability of the product. This includes estimating costs associated with production, marketing, and distribution, as well as identifying the appropriate pricing strategy that will maximize profitability. The company also evaluates the potential demand for the product in the market, which helps to inform the decision to move forward with the product development process.

In summary, the correct answer to the multiple choice question is B: Business analysis.

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Annuity A has a present value of $100,000 and makes 20 payments. Annuity B has a present value of $100,000 and makes 18 payments. All else equal, which one has the higher payment?A. AB. BC. Not enough information to determine.

Answers

Annuity B has the higher payment of them all. This can be calculated through the present value. The correct option is B.  

What is the payment of Annuity?


Annuity A has the higher payment. An annuity is an agreement in which an individual pays a specific amount of money to an insurance company or a financial institution in exchange for future payments at regular intervals.

For a given present value, an annuity with a higher number of payments will always have a smaller payment than one with a smaller number of payments.

All other things being equal, an annuity with a smaller number of payments would have a greater payment than one with a greater number of payments.

In this scenario, both annuities have a present value of $100,000, and the only difference is the number of payments. Since annuity A has 20 payments and annuity B has 18 payments, annuity A has a lower payment than annuity B.

Therefore, the correct option is B.

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Your question is incomplete, most probably the complete question is:

Annuity A has a present value of $100,000 and makes 20 payments. Annuity B has a present value of $100,000 and makes 18 payments. All else equal, which one has the higher payment?

A. A

B. B

C. Not enough information to determine.

If you expect interest rates to increase significantly within the next two years, which one of these bonds would you prefer to own?a. Short-term, high coupon
b. PV= -(Current bond price)
c. - Credit quality of the bond
- Tax status of the bond.
d. - Credit quality of the bond
- Tax status of the bond

Answers

The bond that should be preferred if interest rates are expected to rise significantly within the next two years is a Short-term, high coupon. Option A is the correct answer.

Short-term, high-coupon bonds are ideal for investors who expect interest rates to rise shortly. When interest rates increase, bond prices fall, and bondholders suffer losses. As a result, bonds with a shorter maturity are more immune to fluctuations in interest rates than longer-term bonds.

Short-term, high-coupon bonds are typically issued by firms and municipalities that require a quick infusion of funds but do not want to borrow for an extended period. As a result, short-term bonds have lower interest rates than long-term bonds, which makes them a better choice when interest rates are expected to rise soon.

PV = - (Current bond price) indicates that the bond price is a function of its expected future cash flows discounted at the current yield. This formula is used to calculate the current value of a bond. The bond's credit quality and tax status are important considerations when deciding which bond to invest in.

Option A is the correct answer.

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what is the effect of a stock dividend on stockholders' equity? what is the effect of a stock dividend on stockholders' equity? total stockholders' equity stays the same. stockholders' equity is decreased. additional paid-in capital is decreased. retained earnings is increased.

Answers

The effect of a stock dividend on stockholders' equity is that the total stockholders' equity remains the same.

The effect of a stock dividend is to redistribute a part of a company's retained earnings to stockholders. It is also used to reduce the price per share of stock to make it more appealing to potential buyers.

The company increases the number of shares outstanding by issuing a stock dividend to shareholders.

As a result, each stockholder will get additional shares of the stock, but the value of each share decreases. Retained earnings is decreased, while additional paid-in capital and common stock are increased.

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