Sean and Yvette Durand live in Swarthmore, PA. Yvette's father, Bob, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.

a. Yvette's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
b. Sean buys a sweater made in Guatemala.
c. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
d. Sean's employer upgrades all of its computer systems using U.S.-made parts.
e. Yvette gets a new refrigerator made in the United States.

Answers

Answer 1

Answer:

Any help

Explanation:

I need acndndndndndndmdndbdbzjdjdbdbddjwbbsbxbxbxbxbdhdbdb


Related Questions

Free contract is the _____.

Answers

Answer + Explaining:
In economics, free contract is the concept that people may decide what agreements they want to enter into. A contract may be described as free when it is free from force or fraud.

The last dividend paid by Wilden Corporation was $3.50. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? Select the correct answer. a. $87.92 b. $83.66 c. $82.24 d. $85.08 e. $86.50

Answers

Answer:

b. $83.66

Explanation:

The computation of the best estimated price of the current stock price is shown below:

But before that following calculations need to be done

Dividend at year 0 = $3.50

Dividend at year 1 = $3.50 × 1.015 = $3.5525

Dividend at year 2 = $3.5525 × 1.015 = $3.6058

Dividend at year 3 = $3.6058 × 1.08 = $3.8943

Now price at year 2 is

= $3.8943 ÷ (12% - 8%)

= $97.3563

Now the current stock price is

= $3.5525 ÷ (1.12) +  ($3.6058 + $97.3563)÷ (1.12)^2

= $3.1719 + $8.4863

= $83.66

Which of these statements is true?
O Simple interest percentages must be lower than compound interest percentages
O Compound interest will lead to a larger sum of money than a comparable simple interest payment
O Simple interest payments equal compound interest payments if invested over 10 years
all of these

Answers

Answer:

Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who occasionally plays golf with you.
a. Do you have a conflict of interest in testifying under oath on behalf of your client?
b. Should you discuss this case with the arbitrator if you see him at the country club?
c. Does the arbitrator have a conflict of interest?

Answers

B have a good one buddy
(c )hope it help!!!! Have a nice one!!

Pulmonary Company's perpetual inventory records indicate that $237,390 of merchandise should be on hand on June 30, 2016. The physical inventory indicates that $211,280 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended June 30, 2016. Assume that the inventory shrinkage is a normal amount.

Answers

Answer:

Dr Cost of Merchandise Sold $26,110

Cr Merchandise Inventory $26,110

Explanation:

Preparation of the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended June 30, 2016.

June 30 2016

Dr Cost of Merchandise Sold $26,110

Cr Merchandise Inventory $26,110

($237,390 – $211,280=$26,110)

(Being to record inventory shrinkage)

Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July August September Sales $ 62,700 $ 81,300 $ 49,300 Cash payments for merchandise 43,000 32,300 33,100 Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,600 in cash; $50,000 in accounts receivable; $5,800 in accounts payable; and a $3,300 balance in loans payable. A minimum cash balance of $13,300 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (5% of sales), office salaries ($5,300 per month), and rent ($7,800 per month). (1) Prepare a cash receipts budget for July, August, and September. (2) Prepare a cash budget for each of the months of July, August, and September.

Answers

Answer:

(1)Total cash receipts:

July = $59,405

August = $65,490

September = $76,500

2-a. Ending Cash Balance:

July = $13,300  

August = $26,371  

September = $54,206

2-b.  Loan Balance End of Month:

July = $2,896

August = $0

September = $0

Explanation:

(1) Prepare a cash receipts budget for July, August, and September.

Note: See part (1) of the attached excel file for the cash receipts budget for July, August, and September.

From the attached excel file, we have:

Total cash receipts:

July = $59,405

August = $65,490

September = $76,500

(2) Prepare a cash budget for each of the months of July, August, and September.

Note: See part (2) of the attached excel file for the cash budget for July, August, and September.

In the attached excel file, the following calculation is made:

July loan repayment = July preliminary cash balance - Minimum cash balance required = $13,704 - $13,300 = $404

From the attached excel file, we have:

2-a. Ending Cash Balance:

July = $13,300  

August = $26,371  

September = $54,206

2-b.  Loan Balance End of Month:

July = $2,896

August = $0

September = $0

explain how to use informal assessment to effectively prepare for an examination​

Answers

Answer:

we can practice by using informal assessment to effectively prepared for a exam in the following ways ,when writing a informal assessment we can see where we went wrong and how to correct it ,we ask for help with understanding the informal assessment so when it comes to the examination we know and understand and ace that paper with better results

Explanation:

the impact of inflation in businesses​

Answers

Answer:

Rapidly rising prices not only affect the price consumers pay, they also affect the cost businesses have to pay for materials and inventory. When replacement inventory costs more than the inventory you just sold, it can lead to inventory shortages.

Explanation:

I hope it helped

You are the manager of a small hotel with 40 rooms in Niagara. Your business has dropped almost 90% in recent months. Your cash remaining is enough to run the business for 3 more months.

Apply the 6 thinking hats approach, what would you recommend to do if you were:

1. wearing a blue hat?

2. wearing a white hat?

3. wearing a green hat?

4. wearing a red hat?

5. wearing a yellow hat?

6. wearing a black hat?

After considering the views from different perspectives, what is your recommendation?

Answers

I could wearing a black hat

surrender of shares is the same thing as forfeiture of shares comment

Answers

Answer:

False

Explanation:

The main difference between "Surrender of Shares" and "Forfeiture of shares" is the existence of compulsiveness. Although the two terms result in the loss of shares, the "Surrender of Shares" is done voluntarily, when the company or the shareholder decides to return the shares. The "Forfeiture of shares" occurs when the shares are taken compulsorily, due to non-payment or failure to meet deadlines.

Cost pools are: A. costs that are accumulated before being allocated to cost objects on some common basis. B. costs that are relevant to decision-making but irrelevant to financial reporting. C. product costs that are assigned to cost objects using direct labor or machine hours. D. accounts in the product life cycle from research and development to customer service.

Answers

Answer:

A. costs that are accumulated before being allocated to cost objects on some common basis.

Explanation:

Cost pools are costs that are accumulated before being allocated to cost objects on some common basis.

Fundamental analysis is likely to yield best results for _______. Group of answer choices stocks with very few analysts following NYSE stocks stocks with many analysts following stocks that are frequently in the news stocks of firms that have recently announced earnings

Answers

Answer:

stocks with very few analysts following

Explanation:

Fundamental analysis is chosen to yield for the best result for those stocks that are followed by a very less analyst also it would be helpful for maximizing the rate of return by seeing the stock undervaluation in the case when there is a difference in the price and that cannot be seen so this represent that these stocks would have the maximum rate of return

hence, the first option is correct

Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.00x, $31, 500 in cash, $17, 500 in accounts receivable, some assets of inventory, total $70,000, and total abilities of $24, 500. The company reported annual sales of $100,000 in the most recent annual report, over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? a. 8.01 x.b. 5.24 x.c. 2.85 x.d. 4.75 x.The inventory turnover ratio across companies in the pharmaceutical industry is 4.05x. Based on this information, which of the following statements is true for Graham Pharmaceuticals? A. Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average. You are analyzing two companies that manufacture electronic toy s-Like Games Inc. and our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and our play. Last year the average companies in the coming year. You've collected data from the companies financial statements. This information is listed as follows:Using this information, complete the following statements to include in your analysis. Data collected (in dollars) Like Games Our Play Industary AverageAccounts receivable 2,700 3,900 3,850Net fixed assets 55,000 80,000 216,750Total assets 95,000 125,000 234,6001. A ____ days of sales outstanding represents an efficient credit and collection policy. between the two companies ____ is collecting cash from its customers faster than ____ but both companies are collecting their receivables less quickly than the industry average. 2. Our Play's fixed assets turnover ratio is ___ than that of Like Games. This could be because our play is relatively new company, so the acquisition cost of its fixed assets is ____ than the recorded cost of Like Games's fixed assets. 3. Like Games's total assets turnover ratio is ____ which is ___ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Answers

Answer:

Asset Management Ratios

Part A:

1. Inventory turnover:

= d. 4.75 x

2. Based on this information, the true statement for Graham Pharmaceuticals is:

B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average.

Part B:

1. A __Average__ days of sales outstanding represents an efficient credit and collection policy.  Between the two companies _Like Games__ is collecting cash from its customers faster than _Our Play_ but both companies are collecting their receivables less quickly than the industry average.

2. Our Play's fixed assets turnover ratio is _lower__ than that of Like Games. This could be because Our Play is relatively new company, so the acquisition cost of its fixed assets is _higher___ than the recorded cost of Like Games's fixed assets.

3. Like Games's total assets turnover ratio is _1.05x_ which is _higher_ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Explanation:

a) Data and Calculations:

Graham Pharmaceuticals

Quick ratio = 2.00x

Cash = $31,500

Accounts receivable = $17,500

Inventory = x

Total current assets = $70,000

Total current liabilities = $24,500

Quick assets = $24,500 * 2 = $49,000 ($31,500 + $17,500)

Inventory (x) = $21,000 ($70,000 - $49,000)

Annual sales = $100,000

Inventory Turnover = $100,000/$21,000 = 4.76x

Part B:

                                      Like Games   Our Play    Industry Average

Accounts receivable             2,700         3,900           3,850

Net fixed assets                 55,000       80,000       216,750

Total assets                        95,000     125,000      234,600

Sales revenue                   100,000     100,000     100,000

Days Sales Outstanding      9.9 days   14.2 days      14x

Accounts receivable turnover 37x       25.6x          26x

Average Collection Period    9.9 days   14.3 days    14x

Fixed assets turnover ratio  1.82x        1.25x          0.46x

Total assets turnover ratio   1.05x        0.8x           0.43x

Average days of sales outstanding = Average Accounts Receivable/Sales * 365

Accounts receivable turnover = Net Sales/Average Receivable

Average Collection Period = 365/Accounts receivable turnover

Fixed assets turnover ratio = Net Sales/Net Fixed Assets

Total assets turnover ratio = Net Sales/Total assets

If investing $1,000 for a year, how frequently is simple interest paid on the principal investment?
daily
annually
never
hourly

Answers

Answer:

your intrest is probally 5% or 0.5%

Explanation:

Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 10%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the investment proportion

Answers

Answer:

The proportion of the investment is 100%.

Explanation:

This can be calculated using the following formula:

Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)

Where;

Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15

Rrisky = risky portfolio expected rate of return = 15%, or 0.15

Ttbill = T-bill rate = 10%, or 0.10

Substituting the values into equation (1) and solve for y, we have:

0.15 = (y * 0.15) + ((1 - y) * 0.10)

0.15 = 0.15y + 0.10(1 - y)

0.15 = 0.15y + 0.10 - 0.10y

0.15 - 0.10 = 0.15y - 0.10y

0.05 = 0.05y

y = 0.05 / 0.05

y = 1.00, or 100%

Therefore, the proportion of the investment is 100%.

Rodriguez Corporation issues 18,000 shares of its common stock for $174,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $8 par value. The stock has neither par nor stated value. The stock has a $4 stated value.

Answers

Answer:

a.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                              $144,000

                     Paid-In Cap. in excess of par                                          $30,800

Working

Common stock = 18,000 * 8

= $144,000

Paid-in cap. = 174,800 - 144,000

= $30,800

b.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                              $174,800

c.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                               $72,000

                     Paid-In Cap. in excess of par                                       $102,000

Working

Common stock = 4 * 18,000 = $72,000

Paid in cap = 174,000 - 72,000 = $102,000

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent $43,500 Bribes 65,250 Travel expenses 4,350 Utilities 26,100 Wages 274,250 Payroll taxes 21,750 Property insurance 2,175 Illegal kickbacks 39,150 What are Vella's total deductible expenses for tax purposes

Answers

Answer:

$372,125

Explanation:

Calculation to determine Vella's total deductible expenses for tax purposes

Rent $43,500

AddTravel expenses 4,350

Add Utilities 26,100

Add Wages 274,250

Add Payroll taxes 21,750

Add Property insurance 2,175

Total deductible expenses $372,125

Therefore total deductible expenses for tax purposes will be $372,125

Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f

Answers

I believe it’s false here’s a link to see it https://quizlet.com/216989329/chapter-13-marketing-helping-buyers-buy-flash-cards/

It is a true statement that Learning involves changes in an individual's behavior resulting from previous experiences and information.

What is a Learning?

It refers to when we acquire knowledge or skills through personal study, experience, lesson, lecture etc

Hence, this process creates changes in an individual's behavior resulting from previous experiences and information as they tends to manifest in the learners action.

Therefore, it is a true statement

Read more about Learning

brainly.com/question/24959987

If a check correctly written and paid by the bank for $646 is incorrectly recorded on the company's books for $664, the appropriate treatment on the bank reconciliation would be to deduct $646 from the book's balance. deduct $18 from the bank's balance. subtract $18 from the book's balance. add $18 to the book's balance.

Answers

Answer:

See below

Explanation:

Bank reconciliation occurs basically when there is a difference between the bank statement balance and cash. With regards to the above, the error should be treated thus in the bank reconciliation.

Since the check written and paid by the bank is $646, while it is written in the company's book as $664 , then a book balance of $18 is added which is the difference between $664 and $646

Identify two employment laws which might affect
easyJet plc's business activities.

Answers

Answer:

EasyJet Plc is the eighth largest airline in the world and the second biggest in Europe, . The business generated revenue per passenger of £58 compared with a cost per seat . The return on capital employed was just under 12% in 2017. regarding Brexit which might impact on both revenue and costs going forward.

Explanation:I dont have one  

For calendar year 3, Clark Corp. had depreciation of $300,000 on its income statement. On its Year 3 tax return, Clark had depreciation of $500,000. Clark's income statement also included $50,000 accrued warranty expense that will be deducted for tax purposes when paid in a future year. Clark's enacted tax rates was 25% for all years. These were Clark's only temporary differences. The total deferred tax expense for year 3 should be:

Answers

Answer:

Clark Corp.

The total deferred tax expense for year 3 should be:

= $62,500.

Explanation:

a) Data and Calculations:

Accounting depreciation expense = $300,000

Tax depreciation expense = $500,000

Temporary Difference =  $200,000 ($500,000 - $300,000)

Accrued Warranty Expense 50,000

Total temporary differences = $250,000

Clark's enacted tax rate = 25%

Total deferred tax expense = $62,500 ($250,000 * 25%)

A small, privately-owned Asian company is producing a private-label soft drink Yoggo. A machine paced line puts the soft drinks into plastic bottles and then packages the bottles into boxes holding 10 bottles each. The machine paced line is comprised of the following 4 steps:Step 1 Bottling machine takes 1 second to fill a bottleStep 2 The lid machine takes 3 seconds to cover the bottle with a lidStep 3 A labelling machine takes 5 seconds to apply a label to the bottleStep 4 The packaging machine takes 4 seconds to place a bottle into a boxWhen a box has been filled with 10 bottles, a worker tending the packaging machine removes the filled box and replaces it with an empty box. Assume that the time for the worker to remove the filled box and replace it with an empty box is negligible and hence does not affect the capacity of the line. At step 3, there are two labeling machines that each process alternating bottles. That is, the first machine processes bottles 1,3,5 etc and the second machine processes 2,4,6 etc.Problem data are summarized in the table:Process step: Bottling# of machines: 1 Second per bottle: 1Process step: Apply a lid # of machines: 1 Second per bottle: 3Process step: Labeling # of machines: 2 Seconds per bottle: 5Process step: Packaging # of machines: 1 Second per bottle: 4a) What is the processing capacity (bottles/hr) for the machine paced line?b) What is the bottleneck in the process?c) If one identical labelling machine is added to the process, how much is the increase in the processing capacity going to be (in terms of bottles/hr)?

Answers

Answer:

A. 15 per min or 900 bottles per hour

B. Station 4

C. No increase

Explanation:

a) Calculation to determine the processing capacity (bottles/hr) for the machine paced line

Output of station 1 = 60 /1

Output of station 1 = 60 per minutes

Output of station 2 = 60/3

Output of station 2 =20 per minute

Output of station 3 = 2x 60/5

Output of station 3 =24per minute

Output of station 4 = 60/4

Output of station 4=15 per minute

Based on the above calculation the PROCESS CAPACITY  of the machine paced line will either be  15 per minute or 900 bottles per hour (15minx60)

b)The BOTTLENECK  in the process will be STATION 4

c) In a situation were an identical labelling machine is been  added to the process there won't be any  increase in the processing capacity in terms of bottles/hr reason been that the bottleneck is not the labelling machine.

"Justin Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company is considering investing in new technology that would decrease the variable cost per unit to $6 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 9,000 units of product. What sales price would have to be charged to earn a $90,000 target profit assuming the investment in technology is made?"

Answers

Answer:i dont know

Explanation:

The joint processing costs in this operation: should be ignored in determining whether to sell at split-off or process further. should be allocated to products to determine whether they are sold at split-off or processed further. should be ignored in making all product decisions. are never included in product cost, as they are misleading to all management decisions.

Answers

Answer:

Should be ignored in determining whether to sell at split-off or process further

Explanation:

In the given situation, the joint processing cost should be ignored while calculating it for sell at the split off point or process further because we can see whether it would provide the additional advantage or it should not be split off or it should be further processed

Therefore the first option is correct

Consider a consumer who is contemplating a new automobile purchase. She has narrowed her decision down to two brands, Brand X and Brand Y. She has identified gas mileage, price, warranty, and styling to be important attributes to consider in her decision. Her evaluative ratings (e) for each attribute and her beliefs of how each brand performs on a given attribute (b) are given below: Brand X Brand Y Attribute e b b Mileage 2 6 4Low Price 3 2 2Warranty -1 1 3Design 1 10 5 Refer to the Automobile Scenario. Based on the attitude toward-the-object model, what is the consumer's overall attitude o toward Brand Y? a. 23 b. 16 c. 17d. 11e. 27

Answers

Answer:

27

Explanation:

On January 1, 2020 Roberts acquires 100% of Smith by issuing 100,000 shares (par value $2, fair value $10). Smith will remain as a wholly owned subsidiary of Roberts. At acquisition date, Smith had a book value of assets of $800,000 and a book value of liabilities of $200,000. Included in the assets Smith had land with a book value of $400,000 and a fair value of $330,000. Included in the liabilities, Smith had a Note Payable with a book value of $120,000 and a fair value of $80,000. What is the amount of goodwill or gain on bargain purchase at January 1, 2020.

Answers

Answer:

$430,000

Explanation:

The excess of Purchase Price over the Net Assets taken over is known as Goodwill.

Acquisition of Assets and Liabilities of a subsidiary are made at their Acquisition date Fair Value amounts.

Assets Fair Value

Book Value                                       $800,000

Adjust Land Revalued                      ($70,000)

Assets fair value                               $730,000

Liabilities Fair Value

Book Value                                      $200,000

Adjust Note Payable Revalued       ($40,000)

Liabilities fair value                          $160,000

Now,

Net Assets Acquired = $730,000 -  $160,000 = $570,000

Purchase Price = 100,000 x $10 = $1,000,000

Goodwill = $430,000

Therefore,

the amount of goodwill or gain on bargain purchase at January 1, 2020 is $430,000

A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the process produces wafers at the rate of 112 per second. During this production process, the wafers must spend 12 minutes passing through a cooling tube.

Required:
How many wafers does the cooling tube hold on average when in production?

Answers

Answer:

80,640 wafers

Explanation:

Calculation to determine How many wafers does the cooling tube hold on average when in production

Using this formula

I = R x T

Where,

R = 112 wafers per second x 60

R = 6720 wafers per minute

T = 12 minutes

Let compute for I using the formula aboi

I = 6720 x 12

I = 80,640 wafers

Therefore How many wafers does the cooling tube hold on average when in production are 80,640 wafers

Case A.
Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,500 (original cost of $37,000 less accumulated depreciation of $20,500) and a fair value of $9,900. Kapono paid $29,000 cash to complete the exchange. The exchange has commercial substance.

Case B.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $545,000 and a fair value of $790,000. Kapono paid $59,000 cash to complete the exchange. The exchange has commercial substance.

Required:
a. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
b. Assume the fair value of the old tractor is $23,000 instead of $9,900. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
c. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
d. Assume the fair value of the farmland given is $436,000 instead of $790,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
e. Assume that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Answers

Answer:

Kapono Farms

Case A:

a. The loss that Kapono would recognize on the exchange is:

= $6,600.

The initial value of the new tractor is:

= $38,900.

b. The gain that Kapono would recognize on the exchange is:

= $6,500.

The initial value of the new tractor, if cash payment of $29,000 was made, would be:

= $52,000.

Case B:

c. The amount of gain that Kapono would recognize on the exchange is:

= $245,000.

The initial value of the new land is:

= $790,000.

d. The amount of the loss that Kapono would recognize on the exchange of land is:

= $109,000.

The initial value of the new land is $495,000, if payment of $59,000 is made.

e. If the exchange lacked commercial substance, there is no gain or loss.

The initial value of the new land would be the book value of the old farmland, which is:

= $545,000.

Explanation:

a) Data and Calculations:

Book value of old tractor = $16,500     $16,500

Fair value of old tractor =       9,900      23,000

Loss from the exchange =   $6,600       -6,500

Value of new tractor

Fair value of old tractor =     $9,900   $23,000

Cash payment to complete 29,000     29,000

Value of new tractor          $38,900   $52,000

Case B:

Book value of farmland = $545,000   $545,000

Fair value of farmland =      790,000     436,000

Gain from exchange =      $245,000   $109,000

Value of New Farmland:

Fair value of old farmland $790,000  $436,000

Cash payment to complete   59,000      59,000

Value of new farmland =   $849,000  $495,000

Which of the following statements is CORRECT?

a. A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5, assuming that the stock's beta was correctly calculated and is stable.
b. If a stock has a negative beta, its expected return must be negative.
c. If the returns on two stocks are perfectly positively correlated (i.e., the correlation coefficient is 1.0) and these stocks have identical standard deviations, an equally weighted portfolio of the two stocks will have a standard deviation that is less than that of the individual stocks.
d. According to the CAPM, stocks with higher standard deviations of returns must also have higher expected returns.
e. A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.

Answers

Answer:

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The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year: There are no potential common shares outstanding. 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. 2017 Jan. 14 Declared and issued a 2 for 1 stock split. Dec. 31 Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS. 2. Determine the 2017 EPS. 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements

Answers

Answer:

1. $2.00

2. $0.88

3. $1.00

Explanation:

1. Calculation to determine the 2016 EPS

First step is to calculate the Total Movement of shares and WACSO

Date Movement of shares Ratio WACSO(no. of shares * Ratio)

1-Jan-16 $606 million*12/12 =$606 million

28-Feb-16 (18 million)*10/12=(15 million)

31-Oct-16 18 million*2/12=3 million

30-Nov-16 72 million*1/12=6 million

Total 678 million 600 million

Now let calculate 2016 EPS

Net income $1,200 million

÷Divided by WACSO 600 million

=EPS $2.00

($1,200 million/600 million)

Therefore 2016 EPS will be $2.00

2. Calculation to determine 2017 Earnings per share

First step is to calculate the No. of shares outstanding after stock split

No. of shares outstanding as of 2017 678 million

*Stock split 2

=No. of shares outstanding after stock split 1,356 million

(678 million*2)

Now let calculate 2017 EPS

Net income $1,200 million

÷Divided by WACSO 1,356 million

=EPS 0.88

($1,200 million/1,356 million)

Therefore 2017 EPS will be $0.88

3. Calculation to determine At what amount will the 2016 EPS be presented in the 2017

First step is calculate No. of shares outstanding after stock split

Wacso based on item no. 1 600 million

*Stock split 2

=No. of shares outstanding after stock split 1200 million

(600 million*2)

Now let calculate the 2016 EPS be presented in the 2017

Net income 1200 million

÷Divided by WACSO 1200 million

=EPS 1.00

(1200 million/1200 million)

Therefore At what amount will the 2016 EPS be presented in the 2017 will be $1.00

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