It indicates the percentage of net income generated for each dollar of shareholders' equity invested in the business. Shannon Co's return on equity (ROE) for the year is 9.8%.
Return on equity (ROE) is a financial ratio that measures the profitability of a company in relation to its shareholders' equity. It indicates the percentage of net income generated for each dollar of shareholders' equity invested in the business.
To calculate ROE, we need to divide the net income by the average shareholders' equity. However, in this case, we have been provided with the beginning net assets and the transactions affecting stockholders' equity during the year. We can use this information to calculate the ending shareholders' equity, which will be used to determine ROE.
- Beginning net assets: $617,900
- Net income: $60,800
- Dividends: $16,600
We can calculate the ending shareholders' equity by considering the net income and dividends:
Ending shareholders' equity = Beginning net assets + Net income - Dividends
Ending shareholders' equity = $617,900 + $60,800 - $16,600
Ending shareholders' equity = $662,100
Now that we have the ending shareholders' equity, we can calculate ROE using the following formula:
ROE = (Net income / Average shareholders' equity) * 100
Since we only have the beginning and ending shareholders' equity, we can assume that the average shareholders' equity is the average of the beginning and ending values:
Average shareholders' equity = (Beginning net assets + Ending shareholders' equity) / 2
Average shareholders' equity = ($617,900 + $662,100) / 2
Average shareholders' equity = $640,000
Now we can calculate ROE:
ROE = ($60,800 / $640,000) * 100
ROE ≈ 9.8%
Therefore, Shannon Co's return on equity (ROE) for the year is approximately 9.8%. This indicates that for every dollar of shareholders' equity invested in the company, it generated a return of 9.8% in net income. ROE is a useful measure for assessing the profitability and efficiency of a company's operations and is often used by investors and analysts to evaluate a company's performance.
To learn more about equity click here: brainly.com/question/30655014
#SPJ11
Which of the following is not true with regard to fixed assets?
a)They are acquired for using them in the conduct of business operations
b)They are not meant for resale to earn profit
c)They can easily be converted into cash
d)Depreciation at specified rates is to be charged on most of the fixed assets
The statement that is not true with regard to fixed assets is: c) They can easily be converted into cash.
Fixed assets are long-term tangible or intangible assets that are acquired for use in the conduct of business operations and are not intended for resale to earn profit. They include items such as land, buildings, machinery, vehicles, and patents. However, fixed assets are not easily converted into cash because they are typically utilized in the production process or to support business operations. They are not readily sold or converted into cash like current assets, such as cash itself or inventory. Therefore, option C, "They can easily be converted into cash," is not true with regard to fixed assets. Option C is the correct answer.
You can learn more about fixed assets at
https://brainly.com/question/20289326
#SPJ11
Selected Accounts Of Friendly Kat Company Are Shown Below As Of September 30,2022 Before Any Adjusting Entries Have
The adjusting entries needed for these accounts are as follows: Accounts Receivable: $5,000 should be debited to Service Revenue and credited to Accounts Receivable to reflect services that were performed but not yet billed.
Prepaid Insurance: The selected accounts of Friendly Kat Company as of September 30, 2022, before any adjusting entries have been made, are shown below: Accounts Amounts Accounts Receivable$90,000Prepaid Insurance$54,000Office Supplies$4,500Equipment$50,000Accumulated Depreciation-Equipment$10,000Notes Payable$70,000Interest Payable$1,000.
Friendly Kat Company must make adjusting entries to its accounts at the end of the period to ensure that its financial statements are accurate. Before creating the adjusting entries, it is necessary to examine each account to see if it needs to be adjusted for the passage of time or to reflect the correct balance. Some accounts, such as accounts receivable and prepaid insurance.
To know more about services visit:
https://brainly.com/question/10736907
#SPJ11
Daily Enterprises is purchasing a $10.0 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine? The yearly depreciation expenses are \$ (Round to the nearest dollar.)
The yearly depreciation expenses associated with the machine purchased by Daily Enterprises using straight-line depreciation are $2,010,000.
Straight-line depreciation is a method of allocating the cost of an asset evenly over its useful life. To calculate the yearly depreciation expenses, we need to divide the total cost of the machine, including transportation and installation costs, by the depreciable life.
Total cost of the machine = $10,000,000 + $50,000 = $10,050,000
Depreciation expense per year = Total cost of the machine / Depreciable life
Depreciation expense per year = $10,050,000 / 5
Depreciation expense per year = $2,010,000
Therefore, the yearly depreciation expenses associated with the machine are $2,010,000.
To know more about depreciation click here:
brainly.com/question/30531944
#SPJ11
To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labor and $500 on materials. What is the productivity? If the firm can increase production to 2,200 pieces of luggage with the same labor and material cost, what is the productivity? What is the percentage change? If the labor cost is reduced to $800 and material increased to $600, what is the productivity to produce 2,200 pieces of luggage?
Productivity is the measure of the efficiency of a system or machine in converting inputs into useful outputs, which is calculated using the formula, productivity = output/input. Hence, using the formula:
Productivity = output/input
Given, To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labour and $500 on materials. Therefore, the total cost (input) = $1000 + $500 = $1500
Also, the output (pieces of luggage produced) = 2000
Using the formula, productivity = output / input
= 2000/1500
= 4/3 or 1.33
If the firm can increase production to 2,200 pieces of luggage with the same labour and material cost, the new products will be the ratio of output to input or,
Productivity = Output / Input
Therefore, Productivity = 2200 / 1500 = 22/15 or 1.47
Increase in productivity = (1.47 - 1.33) / 1.33 = 0.104 or 10.4%
The percentage change in productivity is 10.4%If the labour cost is reduced to $800 and materially increased to $600, the new input cost is,
Input cost = $800 + $600 = $1400
The output is still 2,200 pieces of luggage Using the formula,
Productivity = Output / Input = 2200 / 1400 = 22/14 or 1.57
Hence, the productivity is 1.57.
To know more about Productivity visit:
https://brainly.com/question/30333196
#SPJ11
ABC company has ending inventory of $426381, and the cost of goods sold for the year just ended was $4722763. How long on average did a unit of inventory sit on the shelf before it was sold? Assume 365 days in a year. (Round your answer to 2 decimal places) XYZ has a current accounts receivable balance of $390316. Credit sales for the year just ended were $4204707. What is the company's days' sales in receivables? Assume 365 days in a year. (Round your answer to 2 decimal places, e.g. 23.87)
On average, a unit of inventory sits on the shelf for approximately 32.
To calculate the average number of days a unit of inventory sits on the shelf before being sold, we can use the following formula:
Inventory turnover = cost of goods sold / average inventory
average days in inventory = 365 days / inventory turnover
given:
ending inventory = $426,381cost of goods sold = $4,722,763
first, we need to calculate the average inventory:
average inventory = (beginning inventory + ending inventory) / 2
assuming we have no information about the beginning inventory, we can only use the ending inventory in this case.
average inventory = $426,381
now we can calculate the inventory turnover:inventory turnover = cost of goods sold / average inventory
inventory turnover = $4,722,763 / $426,381
finally, we can calculate the average days in inventory:average days in inventory = 365 days / inventory turnover
let's calculate the average days in inventory:
inventory turnover = $4,722,763 / $426,381 = 11.07 (rounded to 2 decimal places)
average days in inventory = 365 days / 11.07 = 32.97 (rounded to 2 decimal places) 97 days before being sold.
moving on to the second question:
to calculate the days' sales in receivables, we can use the following formula:
days' sales in receivables = (accounts receivable / credit sales) * 365 days
given:
accounts receivable = $390,316credit sales = $4,204,707
days' sales in receivables = ($390,316 / $4,204,707) * 365 days
let's calculate the days' sales in receivables:
days' sales in receivables = ($390,316 / $4,204,707) * 365 = 33.95 (rounded to 2 decimal places)
Learn more about Company here:
https://brainly.com/question/30532251
#SPJ11
A major leadership initiative for enhancing a learning organization is to
A.establish supervisory training programs.
B.get workers to focus almost entirely on their own work.
C.create a vision to be shared mostly by the top-management team.
D.create a strategic intent to learn.
A major leadership initiative for enhancing a learning organization is to creating a strategic intent to learn, aligns with the concept of enhancing a learning organization.
Creating a strategic intent to learn is a major leadership initiative for enhancing a learning organization. A learning organization is characterized by its ability to adapt, innovate, and continuously improve through individual and collective learning. It emphasizes the importance of learning at all levels of the organization and encourages employees to actively seek knowledge, acquire new skills, and share information.
By creating a strategic intent to learn, leaders communicate the organization's commitment to learning and create a culture that values and supports continuous learning and development. This involves fostering a safe and open environment where employees are encouraged to experiment, take risks, and learn from both successes and failures. It also involves providing resources and opportunities for training, mentoring, and knowledge sharing.
Establishing supervisory training programs (option A) can be a part of enhancing a learning organization, but it is not the major leadership initiative mentioned in the question. Option B, focusing solely on individual work, goes against the idea of a learning organization, which emphasizes collaboration and knowledge sharing. Creating a vision shared mostly by the top-management team (option C) does not promote the involvement and engagement of all employees in the learning process. Therefore, option D, creating a strategic intent to learn, aligns with the concept of enhancing a learning organization.
To learn more about ability
https://brainly.com/question/28888838
#SPJ11
A major leadership initiative for enhancing a learning organization is C. to involve establishing a clear and compelling vision for the organization that emphasizes the importance of continuous learning and improvement.
By creating a strategic intent to learn, leaders can inspire and motivate employees to actively seek out new knowledge and skills. This can be done through various means, such as providing opportunities for training and development, encouraging collaboration and knowledge sharing among employees, and fostering a culture of experimentation and innovation.
Additionally, leaders should also ensure that learning is integrated into the organization's strategic planning and decision-making processes. This means that learning goals and objectives should be aligned with the overall goals and objectives of the organization, and leaders should actively seek feedback and input from employees to continuously improve and adapt their strategies.
In summary, creating a strategic intent to learn is a crucial leadership initiative for enhancing a learning organization. It involves setting a clear vision for continuous learning, providing opportunities for growth and development, fostering a culture of collaboration and innovation, and integrating learning into the organization's strategic planning and decision-making processes.
Thus the correct option is C. create a vision to be shared mostly by the top-management team.
Learn more about leadership from the given link:
https://brainly.com/question/32010814
#SPJ11
[Monopoly and quality provision] Consider the case of the monopolist Pear. For its next generation of phones the monopolist has to decide which quality level it wants to choose. The quality of the product k can either be high or low. If the quality is low then k=1. If the quality is high then k=3. Inverse demand for the new product is predicted to be as follows P=k(20−Q). So a higher quality increases the willingness to pay for the product. If the quality is low (k=1), the marginal cost is 2 . If the quality is high (k=3), the marginal cost is 24 . Pear incurs an extra cost of 30 if it decides to produce the high quality product. This extra cost is 0 in case the quality is low. The monopolist can only produce one of the two products. (a) (0.5 points) Determine the price and quantity a monopolist would set for both cases if it employs uniform pricing. Which option would give the monopolist the highest profit? (b) (0.5 points) Calculate the Lerner index for both cases. Comment on the differences. (c) (0.5 points) In case the monopolist sets the prices and quantities, which quality level do consumers prefer? Which quality level gives the lowest dead weight loss? (d) (0.5 points) Suppose the monopolist is able to perfectly price discriminate. Which quality level will it provide? Compare to (a).
The monopolist chooses low-quality product for uniform pricing, but provides both quality levels in perfect price discrimination to maximize profit.
(a) For the low-quality product (k=1), the monopolist sets the price by equating marginal cost to marginal revenue.
Marginal revenue is calculated by differentiating the inverse demand equation:
MR = 20 - 2Q.
Setting MR equal to marginal cost (MC = 2), we have:
20 - 2Q = 2.
Solving for Q, we find Q = 9, and substituting Q back into the inverse demand equation, we get P = 1(20 - 9) = $11. Therefore, the monopolist would set the price at $11 and quantity at 9 for the low-quality product.
For the high-quality product (k=3), we consider the extra cost of 30. The marginal revenue is now:
MR = 20 - 2Q - 30.
Setting MR equal to marginal cost (MC = 24), we have:
20 - 2Q - 30 = 24.
Solving for Q, we find Q = -17, which is not a feasible quantity. Therefore, the monopolist would not produce the high-quality product under uniform pricing.
The option that gives the monopolist the highest profit is producing and selling the low-quality product.
(b) The Lerner index measures market power and is calculated as (P - MC) / P.
For the low-quality product:
P = $11 (from part a) and MC = $2.
Lerner index = (11 - 2) / 11 = 0.818.
For the high-quality product (not produced under uniform pricing):
Lerner index = 0 (as there is no price set).
The Lerner index for the low-quality product is positive, indicating some degree of market power, while the Lerner index for the high-quality product is 0 due to its absence.
(c) Consumers prefer the high-quality product (k=3) as it has a higher willingness to pay. The quality level that gives the lowest deadweight loss would be the one where the monopolist maximizes its profit, which is producing and selling the low-quality product.
(d) In perfect price discrimination, the monopolist charges each consumer their maximum willingness to pay. Hence, the monopolist would provide both quality levels (low and high) to capture all consumer surplus and maximize its profit. The monopolist would charge a higher price for the high-quality product, ensuring that consumers pay the full value they are willing to pay for each level of quality.
To know more about revenue, click here:
brainly.com/question/29567732
#SPJ11
A facility with an effective capacity of 33000 crates/day operates with an efficiency of 86%.
What is the maximum number of defect free crates that can be produced per day? Round to a whole number.
What is the number of crates it needs to plan to produce on a day that requires 27330 crates to be shipped? Round to a whole number.
To find the maximum number of defect-free crates that can be produced per day, we need to multiply the effective capacity by the efficiency.
Maximum number of defect-free crates = Effective capacity × Efficiency
= 33000 crates/day × 0.86
≈ 28380 crates/day
Therefore, the maximum number of defect-free crates that can be produced per day is approximately 28380 crates.
To determine the number of crates that need to be produced on a day that requires 27330 crates to be shipped, we need to consider the efficiency.
Number of crates to be produced = Number of crates to be shipped / Efficiency
= 27330 crates / 0.86
≈ 31779 crates
Therefore, the company needs to plan to produce approximately 31779 crates on a day that requires 27330 crates to be shipped.
To know more about effective capacity, please visit
https://brainly.com/question/30630425
#SPJ11
under the federal fair housing act it is illegal to discriminate because
Under the Federal Fair Housing Act, it is illegal to discriminate because of race, color, national origin, religion, sex, familial status, or disability.
Discrimination of any kind is detrimental to people's ability to access resources, services, and opportunities. Everyone should have the same opportunities regardless of their background, beliefs, or status. The Fair Housing Act was implemented to help ensure equal opportunities and accessibility to housing for all individuals, regardless of the seven protected characteristics.
It prohibits discrimination in the sale, rental, and financing of housing based on these protected characteristics. The Fair Housing Act also established the Department of Housing and Urban Development's Office of Fair Housing and Equal Opportunity to enforce the act's provisions and investigate complaints of discrimination. If an individual or organization is found to have violated the Fair Housing Act, they can face serious legal consequences, including fines and damages to those affected by the discrimination.
learn more about Housing
https://brainly.com/question/30104409
#SPJ11
In 6 years you plan to invest $106. In 13 years from today will you have $284. What annual compound interest rate will you earn on your investment? Answer as a decimal. Round to the nearest ten thousandth.
The annual compound interest rate earned on the investment is approximately 6.0737%.
To determine the annual compound interest rate earned on the investment, we can use the formula for compound interest:
Future Value = Present Value * (1 + interest rate)^n
Future Value = $284 (the amount after 13 years)
Present Value = $106 (the initial investment)
n = 13 years - 6 years = 7 years (the time period for interest to compound)
By rearranging the formula, we can solve for the interest rate:
Interest Rate = [(Future Value / Present Value)^(1/n)] - 1
Plugging in the values:
Interest Rate = [(284 / 106)^(1/7)] - 1
Calculating this expression gives us approximately 0.060737.
Therefore, the annual compound interest rate earned on the investment is approximately 6.0737% (rounded to the nearest ten thousandth).
To learn more about investment click here: brainly.com/question/1231328
#SPJ11
EcoBrite Labs Performs Tests On Water Samples Supplied By Outside Companies To Ensure That Their Waste Water Meets
Eco Brite Labs performs tests on water samples supplied by outside companies to ensure that their wastewater meets the environmental regulations of the United States. The company is dedicated to providing accurate and reliable results to their clients, with a focus on environmental responsibility.
The tests performed by EcoBrite Labs cover a range of parameters, including pH, conductivity, alkalinity, and turbidity. These tests are crucial in determining the quality of the wastewater and whether it meets the standards set by regulatory agencies.
In conclusion, Eco Brite Labs performs critical tests on water samples supplied by outside companies to ensure that their wastewater meets environmental regulations. The company is dedicated to providing accurate and reliable results to their clients, with a focus on environmental responsibility.
To know more about wastewater visit:
https://brainly.com/question/9637593
#SPJ11
When performing a bank reconciliation, a transaction that was previously marked as reconciled has been deleted, prompting a notification that tells you that the account isn't ready to reconcile yet. Which steps should be taken to correct this? A Find the transaction within the Audit Log, reinstate the transaction, and mark it as cleared from within the Bank Register B Look at the history of the deleted transaction, enter a new transaction, and mark as reconciled within the Bank Register C View the voided/deleted report to find the transaction in question, un-delete, then re-reconcile the bank statement to the previous ending balance C Undo the previous bank reconciliation, reinstate the deleted transaction, and perform a one-off adjustment reconciliation to the previous ending balance
The step that should be taken correctly is, View the voided/deleted report to find the transaction in question, un-delete it, and then re-reconcile the bank statement to the previous ending balance.
View the voided/deleted report: Access the report or transaction history that records voided or deleted transactions. This report will help you identify the specific transaction that was mistakenly deleted.
Find the transaction in question and un-delete it: Once you have located the deleted transaction, you need to un-delete it to reinstate it within your accounting system. The process of un-deleting the transaction may vary depending on the accounting software you are using. Refer to the software's documentation or support resources for guidance on how to un-delete a transaction.
Re-reconcile the bank statement: After the deleted transaction has been reinstated, you need to reconcile the bank statement again to ensure that it matches the previous ending balance. This involves going through the reconciliation process from the beginning, starting with the initial ending balance and going through each transaction to arrive at a new ending balance that matches the bank statement.
Reconciling the bank statement typically involves comparing the transactions listed in your accounting system with the transactions shown on the bank statement. You will need to mark each transaction as cleared or reconciled to indicate that it has been accounted for.
By viewing the voided/deleted report, un-deleting the transaction, and re-reconciling the bank statement, you can correct the error in the bank reconciliation process. This ensures that the account is brought back to its reconciled state and maintains accurate financial records.
To know more about reports, visit:
https://brainly.com/question/29650084
#SPJ11
Based on the following conversation, please choose the correct answer.
Narrator - Greetings, Tifa. I'll be your narrator or guide, for this activity. As the CEO, you're now going to meet with some members of Medi-Pharma's senior leadership team. Chloe is your chief medical officer and Derek is your chief financial officer.
Chloe - Hi Tifa, great to see you.
Derek- Yes, Tifa. Glad we can discuss Mindzecor today.
Me - Hi Chloe and Derek. Good to see you as well. Let's chat about this proposed new pharmaceutical drug.
Chloe - Great. So first, please take a look at our trial success rates for Mindzecor. As you can see, we seem to not be getting the performance we want.
Derek - What type of success rate do our other drugs have?
Chloe - Good question, Derek. Here is a chart of how Mindzecor compares to the average success rate of our other drugs.
Derek - Wow! That's not good. Other drug trials seem to be faring much better.
Derek - What's also concerning is our financial forecast for Mindzecor. Take a look at these projections. They include three other types of drugs, what we've currently spent on R&D, and what we expect to spend on R&D once all is said and done. You'll also notice our expected profit for each drug. Naing Aung, just to clarify, Memaretine is Mindzecor.
Derek - Based on this information, I suggest we stop funding R&D for Mindzecor and focus on more profitable projects.
Chloe - Hmmm, I have concerns with that. There are thousands of individuals who die from neurological diseases, something Mindzecor can cure. We seem to have an ethical dilemma on our hands!
Narrator - Tifa, based on the information presented to you, and what your team is saying, which ethical approach would you like to take?
Me - Ethical egoism (individualistic)
Narrator - Okay. Let's see what happens
Me - Well team, let's utilize an ethical egoism (individualistic) approach.
Derek - And what does that mean?
Me - It means we try an approach that puts our own self-interest first.
Derek - Ah, that makes sense. Okay!
Chloe - Let's take a look at some data my team put together about the impact of this neurological disease.
Derek - I understand the impact of neurological diseases on our society, Chloe, but this is not in the company's best interest. We have a responsibility to the board to make profitable decisions. We also don't want to lose our jobs and our bonuses!
Derek - Based on the ethical approach you've outlined for us to utilize, what do you want to do, Tifa?
Me - Cut funding and redirect funds to cosmetic drugs, which are more profitable.
Chloe - I disagree with you, Tifa but you are in charge. So we'll pull the plug on Mindzecor.
Narrator - Though this choice is serving your interests, and not others, it is correct based on your initial approach, which was ethical egoism (individualistic).
Narrator - A couple months after you cut funding for the project, the following article was released in the news.
Narrator - Based on this article, you decide to revisit your ethical mindset. What is the best next step? (Choose the correct answer)
- Change your position and support Mindzecor.
- Make a statement to the public about why Mindzecor funding
was cut (it was not profitable).
Based on the information provided in the conversation and the subsequent article, the best next step would be to "Make a statement to the public about why Mindzecor funding was cut (it was not profitable)."
How to get the answerThis step would involve being transparent with the public and explaining the decision to cut funding for Mindzecor based on its lack of profitability.
The best next step would be to make a statement to the public about why Mindzecor funding was cut due to its lack of profitability. This choice is based on the information presented in the conversation and the subsequent article.
Initially, the decision to cut funding for Mindzecor was made based on an ethical egoism (individualistic) approach, which prioritized the company's self-interest and profitability.
Read more on profitability here https://brainly.com/question/1078746
#SPJ1
product differentiation is selecting the best price at which to sell a product.
Product differentiation is not related to selecting the best price at which to sell a product.
Product differentiation is a strategy used by businesses to create a competitive advantage by offering unique features, benefits, or characteristics that set their products apart from others in the market. The goal is to make the product more desirable to customers and create a perception of added value.
Determining the best price at which to sell a product is a separate decision known as pricing strategy. Pricing strategy involves evaluating factors such as production costs, market demand, competition, and perceived value to determine an optimal price point that balances profitability with customer affordability.
While product differentiation can influence pricing decisions indirectly, it is not solely focused on selecting the best price. Instead, product differentiation aims to create perceived value and uniqueness, which can influence customers' willingness to pay a certain price for the product. Pricing decisions consider a broader set of factors beyond differentiation, including cost considerations, market dynamics, and pricing objectives.
So, product differentiation is the process of distinguishing a product or service from competitors based on unique features or attributes. It is not directly associated with selecting the best price at which to sell a product, which falls under the domain of pricing strategy.
Learn more about product differentiation here:
https://brainly.com/question/29792118
#SPJ11
Elise buys a house and makes a down payment of 35% of the price of the house. She manages to secure a loan at an interest rate of 13,25\% per year, compounded monthly, for a period of 20 years. Her monthly payment is R10 437,26 . The size of the loan (to the nearest rand) is A. R869 941. B. R1 020091. C. R877 500. D. R1 508454. Elise buys a house and makes a down payment of 35% of the price of the house. She manages to secure a loan at an interest rate of 13,25\% per year, compounded monthly, for a period of 20 years. Her monthly payment is R10 437,26. If an average yearly inflation rate of 5,57% is expected, then the real cost (the difference between the total value of the loand the actual principal borrowed) of the loan (to the nearest rand) is 1. R877 500 . 2. R631108. 3. R1 350000. 4. R1 508608.
The size of the loan is R877 500 and the real cost (the difference between the total value of the loan and the actual principal borrowed) of the loan is R631108.
Then the size of the loan is the difference between the price of the house and the amount Elise paid as a down payment (35% of the price of the house). Therefore, the size of the loan is :Loan = P - 0.35P = 0.65PAlso, the monthly payment, A is related to the loan, P, and the monthly interest rate, r, as follows: `A = (r P) / (1 - (1 + r)^(-12n))`, where n is the number of months in the loan term, and r is the monthly interest rate expressed as a decimal. Substituting r = 0.1325/12, n = 20 * 12, and A = 10 437.26, we get:10437.26 = (0.1325/12)P / (1 - (1 + 0.1325/12)^(-12*20)) Let V be the total value of the loan. We have :V = (A * 12) * 20 = R2 508 504Inflation rate, i = 5.57% per annum Therefore, the real value of the loan is :Real value = V / (1 + i)^20 = R1 877 396,63, rounded to the nearest rand. The difference between the total value of the loan and the actual principal borrowed is the real cost of the loan: Real cost = Real value - P = R631108, rounded to the nearest rand.
Learn more about real cost here:
https://brainly.com/question/33676582
#SPJ11
Describes the J-Curve Adjustment Path.
While the text describes the J-curve adjustment following an exchange rate depreciation, the J-curve adjustment has been witnessed in other scenarios as well. Describe details whether a J-curve effect was evident following the current US Administration’s policy regarding fossil fuels.
The J-Curve Adjustment Path refers to the short-term effect of a currency depreciation on a country's trade balance.
The J-Curve Adjustment Path shows that, in the short term, a country's trade balance will worsen after a depreciation, but over time, it will improve as the country's export competitiveness increases and import expenditure decreases. The J-Curve Adjustment Path illustrates that when a currency is devalued, it takes time for a country's trade balance to improve.
In the short run, the trade balance gets worse due to increased inflation, which makes imports more expensive, and the impact of the depreciation on net exports, which takes time to develop. As the exchange rate depreciation begins to have an effect, the trade balance gradually improves.
In the case of the current US Administration's policy regarding fossil fuels, there was no evidence of a J-Curve effect. In fact, the opposite appears to be true. Since the policy is geared toward promoting fossil fuels, which are major import items, it is likely that the policy will lead to a worsening of the US trade balance. This suggests that the J-Curve adjustment path will not be observed in this situation, as the trade balance is expected to deteriorate rather than improve as a result of the policy.
Learn more about trade balance Here.
https://brainly.com/question/30552848
#SPJ11
an auditor will ordinarily examine invoices from lawyers primarily in order to
An auditor will ordinarily examine invoices from lawyers primarily in order to verify and validate the legal expenses incurred by the company.
Reviewing the Accuracy and Completeness: Auditors will check the invoices to ensure that they accurately represent the legal services provided, including the description of services, dates, and corresponding fees. They will also verify that all relevant invoices have been accounted for and included in the company's financial records.
Assessing Reasonableness of Charges: Auditors will evaluate whether the fees charged by the lawyers are reasonable and in line with industry standards. They may compare the rates and charges with similar legal services provided by other practitioners to determine if any excessive or unnecessary expenses have been incurred.
To learn more about expenses follow:
https://brainly.com/question/29850561
#SPJ11
Taxpayer, on his 2021 federal income tax return, legitimately claimed his seventeen year old son as a dependent. Assume that the son earned $5,100 in 2021 mowing lawns while away from home attending college and that the son filed a 2021 personal federal income tax return. What personal exemption deduction amount may Taxpayer's son claim on his 2021 federal income tax return?
In the year 2021, Taxpayer claimed his 17-year-old son as a dependent on his federal income tax return. His son earned $5,100 in 2021 while away from home attending college by mowing lawns.
Taxpayer's son also filed a personal federal income tax return in the same year. The personal exemption deduction amount that Taxpayer's son can claim on his 2021 federal income tax return is $0. Since the Tax Cuts and Jobs Act was passed in 2017, personal exemption deductions have been suspended for the tax years 2018 through 2025.
To clarify this point further, the $4,050 personal exemption deduction that was allowed under prior law was suspended for tax years 2018 through 2025. Thus, Taxpayer's son may not claim a personal exemption deduction on his federal income tax return for the tax year 2021, because the provision is still in effect.
To know more about the income tax, visit:
https://brainly.com/question/29106272
#SPJ11
Assume Young Company accepts the loan offer from Community Bank and hires a CPA firm to perform a financial statement audit. As part of auditing Young’s financial statements, an audit requires that the auditor obtain an understanding of the entity’s internal control over financial reporting.
Why might Community Bank be interested in the work conducted by auditors in this phase of the audit? Please elaborate in your answer.Section Break Chapter 01 Problem 1-26 LO 1-6 Young Company has a 7 percent annual interest rate on its bank loan which the company is in the process of repaying. The loan currently has a principal balance of $15 million. Young Company provides financial statements to the bank in order to meet the bank's loan requirements. Young prepares its financial statements with some help from a local CPA, who provides advice in preparing journal entries and closing the books. Young Company approached several other banks and found two that were willing to offer loans at competitive rates. Country Valley Bank offers a 6% annual interest rate for small businesses that involve a CPA in helping prepare their financial statements. Community Bank offers a 4.5% rate on its loan but would require that Young Company have its financial statements separately audited by an independent CPA firm each year to get that lower rate. Young Company reached out to a local CPA firm and received an estimate of $145,000 annually to provide an independent audit opinion on Young's financial statements each year.
Community Bank's interest in auditors' work is primarily about risk management. A financial audit helps ensure accuracy and reliability of financial statements, reducing the risk of lending to Young Company. In essence.
Community Bank would be interested in the audit phase because it assures the bank of the accuracy and credibility of Young Company's financial statements. The auditing process scrutinizes the company's internal controls, reducing the risk of financial misrepresentation or fraud. In a financial audit, auditors assess the entity's internal control over financial reporting to ensure that the statements are free from material misstatement. This in-depth review helps verify the accuracy of the provided information and the reliability of the company's financial management. Community Bank, as a lender, would require this level of assurance to manage its risk effectively.
Learn more about financial audit here:
https://brainly.com/question/30436864
#SPJ11
Hartford Mining has 80 million shares that are currently trading for $5 per share and $110 million worth of debt. The debt is risk free and has an interest rate of 6%, and the expected return of Hartford stock is 11%. Suppose a mining strike causes the price of Hartford stock to fall 28% to $3.60 per share. The value of the risk-free debt is unchanged. Assuming there are no taxes and the risk (unlevered beta) of Hartford's assets is unchanged, what happens to Hartford's equity cost of capital?
The risk (unlevered beta) of Hartford's assets is unchanged, the levered beta after the strike will be the same as the levered beta before the strike.
The mining strike does not affect Hartford's equity cost of capital.
To determine the effect of the mining strike on Hartford's equity cost of capital, we need to calculate the levered beta before and after the strike, and then use the levered beta to calculate the equity cost of capital.
Calculate the levered beta before the strike:
The levered beta represents the systematic risk of the company's equity, taking into account the effects of debt. Since the risk (unlevered beta) of Hartford's assets is unchanged, we can use the following formula to calculate the levered beta before the strike:
Levered Beta = Unlevered Beta × (1 + (1 - Tax Rate) × Debt/Equity Ratio)
Given:
Unlevered Beta = Beta of Hartford's assets (unchanged)
Tax Rate = 0 (no taxes)
Debt = $110 million
Equity = (Number of shares × Price per share) - Debt
Number of shares = 80 million
Price per share before the strike = $5
Equity = (80 million × $5) - $110 million
Equity = $390 million
Debt/Equity Ratio = Debt / Equity
Debt/Equity Ratio = $110 million / $390 million
Debt/Equity Ratio ≈ 0.2821
Levered Beta before the strike = Unlevered Beta × (1 + (1 - Tax Rate) × Debt/Equity Ratio)
Calculate the levered beta after the strike:
Since the risk (unlevered beta) of Hartford's assets is unchanged, the levered beta after the strike will be the same as the levered beta before the strike.
Calculate the equity cost of capital:
The equity cost of capital is calculated using the Capital Asset Pricing Model (CAPM):
Equity Cost of Capital = Risk-Free Rate + Levered Beta × Equity Risk Premium
Given:
Risk-Free Rate = 6%
Expected Return of Hartford Stock = 11%
Equity Risk Premium = Expected Return of Hartford Stock - Risk-Free Rate
Equity Risk Premium = 11% - 6%
Equity Risk Premium = 5%
Equity Cost of Capital before the strike = Risk-Free Rate + Levered Beta × Equity Risk Premium
Equity Cost of Capital after the strike = Risk-Free Rate + Levered Beta × Equity Risk Premium
Since the levered beta remains unchanged, the equity cost of capital before and after the strike will also remain unchanged.
Therefore, the mining strike does not affect Hartford's equity cost of capital.
To learn more about CAPM, visit:
https://brainly.com/question/33539143
#SPJ11
On December 1, Year 1. Jack's Snow Removal Company recelved $10,500 of cast in advance from a customer and promised to provide services for that customer during the months of December, January, and February, How will the Year 1 year.end acjustment to recogrize the partial expiration of the contract impact the financial statements moder? Mumiple Choice SHockholders' equify will increase by \$3,500. Total assets wil increase by $3,500 and stockholders' equity will increase by $3,500. Total assets wil increase by $3,500. Total liabilites will increase by $3,500.
The year-end adjustment to recognize the partial expiration of the contract will increase total assets by $3,500 and stockholders' equity by $3,500.
When a customer pays in advance for services to be provided over a period of time, the company recognizes the revenue gradually as the services are performed. In this case, the customer paid $10,500 in advance for snow removal services during December, January, and February. At the year-end, one-third of the contract period has expired (December), so the company needs to recognize the portion of revenue that corresponds to the services provided in December.
To adjust for the partial expiration of the contract, Jack's Snow Removal Company will increase its revenue by $3,500. This increase will also affect the company's net income, which will rise by $3,500. Since net income contributes to stockholders' equity, the adjustment will result in an increase of $3,500 in stockholders' equity.
However, the adjustment does not impact total liabilities since the revenue was received in advance and does not involve any additional liabilities. As a result, total assets will increase by $3,500, reflecting the recognition of the earned revenue.
Learn more about equity here: brainly.com/question/31458166
#SPJ11
Search the Internet for at least one recent and authoritative
article that compares and ranks customer relationship management
systems. Select FOUR packages from the list and compare their
functions,
This article compares and ranks four leading CRM systems:
Salesforce,Hubspot,Zoho CRM, , and Microsoft Dynamics 365.
1. Salesforce: Salesforce is one of the most widely used CRM systems, offering a comprehensive range of features such as lead management, sales forecasting, opportunity tracking, and customer support. It provides extensive customization options and integrates well with other tools and platforms.
2. HubSpot: HubSpot CRM focuses on inbound marketing and offers features like lead capture, email marketing, social media integration, and sales analytics. It provides a user-friendly interface and is popular among small and medium-sized businesses.
3. Zoho CRM: Zoho CRM provides a variety of features including contact management, lead generation, pipeline management, and workflow automation. It offers integration with various third-party apps and has a mobile app for on-the-go access.
4. Microsoft Dynamics 365: Microsoft Dynamics 365 offers a range of CRM capabilities along with other business applications. It includes features like sales automation, customer service management, marketing automation, and project service automation. It integrates well with Microsoft Office tools and provides advanced analytics capabilities.
Each CRM has its strengths and weaknesses, so it's crucial to evaluate them based on your specific business requirements and goals.
for such more question on ranks
https://brainly.com/question/18685356
#SPJ8
(II) Let x and y denote the amount of goods x and y. The utility is a function of x and y. For each utility function, find the marginal utilities of both x and y, i.e. find the partial derivatives of x and y. 1. U = xy 2. U = π × xy 3. U = √xy 4. U = ln(xy) 5. U = x + xy 6. U = x − xy 7. U = x2y 8. U = x + √y 9. U = Axαy1−α, where A is any positive constant and 0 < α < 1. 1
Given utility function U(x,y) = xyWe need to find the marginal utility of x and y ∂U/∂x= yThis is the marginal utility of x. The marginal utility of x is the amount by which the utility will increase if we increase the amount of x by one unit, with y held constant. ∂U/∂y= xThis is the marginal utility of y.
The marginal utility of y is the amount by which the utility will increase if we increase the amount of y by one unit, with x held constant.2. U(x,y) = π xyWe need to find the marginal utility of x and y.∂U/∂x= π yThis is the marginal utility of x. The marginal utility of x is the amount by which the utility will increase if we increase the amount of x by one unit, with y held constant.
∂U/∂y= π xThis is the marginal utility of y. The marginal utility of y is the amount by which the utility will increase if we increase the amount of y by one unit, with x held constant.3. U(x,y) = √(xy)We need to find the marginal utility of x and y. ∂U/∂x= (1/2) (1/√(xy)) yThis is the marginal utility of x. The marginal utility of x is the amount by which the utility will increase if we increase the amount of x by one unit, with y held constant.
∂U/∂y= (1/2) (1/√(xy)) xThis is the marginal utility of y. The marginal utility of y is the amount by which the utility will increase if we increase the amount of y by one unit, with x held constant.4. U(x,y) = ln(xy)We need to find the marginal utility of x and y. ∂U/∂x= 1/yThis is the marginal utility of x. The marginal utility of x is the amount by which the utility will increase if we increase the amount of x by one unit, with y held constant.
∂U/∂y= 1/xThis is the marginal utility of y. The marginal utility of y is the amount by which the utility will increase if we increase the amount of y by one unit, with x held constant.5. U(x,y) = x + xyWe need to find the marginal utility of x and y. ∂U/∂x= 1 + yThis is the marginal utility of x. The marginal utility of x is the amount by which the utility will increase if we increase the amount of x by one unit, with y held constant. ∂U/∂y= x + 1This is the marginal utility of y.
To know more about marginal visit:
https://brainly.com/question/28481234
#SPJ11
The marginal utilities of both x and y for each utility function:
1. U = xy
MUx = y
MUy = x
U = π × xy
2. MUx = πy
MUy = πx
U = √xy
3. MUx = 1/2 * (y/x)^(1/2)
MUy = 1/2 * (x/y)^(1/2)
U = ln(xy)
4. MUx = 1/x
MUy = 1/y
U = x + xy
5. MUx = 1 + y
MUy = x + 1
U = x − xy
6. MUx = 1 − y
MUy = −x
U = x^2y
7. MUx = 2xy
MUy = x^2
U = x + √y
8. MUx = 1
MUy = 1/(2√y)
U = Axαy1−α, where An is any sure consistent and 0 < α < 1.
9. MUx = Aα(y/x)^(1-α)
MUy = A(1-α)(x/y)^α
\In economics, utility refers to the satisfaction or benefit that consumers derive from using a product or service. In contrast, the change in pleasure or satisfaction that occurs when one unit of a good or service is consumed more or less is known as marginal utility. Negligible utility can be positive, negative, or zero.
[citation needed] For instance, while eating pizza, the subsequent piece brings more fulfillment than the first, demonstrating positive negligible utility. Nonetheless, after the third or fourth piece, the fulfillment level begins to diminish, demonstrating zero or negative minimal utility.[citation needed] Negative negligible utility suggests that each extra unit consumed hurts more than great, prompting a lessening in generally utility
Learn more about marginal utilities here:
brainly.com/question/30841513
#SPJ4
Suppose your salary in 2014 is $55,000. If the annual inflation rate is 2%, what salary do you need to make in 2020 in order for it to keep up wit inflation? Round your answer to the nearest cent, if necessary.
Inflation is the rate at which the cost of goods and services rises in the economy over time. It is calculated as the percentage increase in the consumer price index (CPI) over a given period. As a result, inflation has an effect on the purchasing power of currency over time, lowering its worth.
Suppose your salary in 2014 is $55,000. If the annual inflation rate is 2%, Here's how to solve the problem: Compute the inflation rate between 2014 and 2020 as follows: Inflation rate = CPI in 2020 – CPI in 2014/CPI in 2014×100The CPI in 2014 is 100 because it is the starting point. CPI in 2020, on the other hand, can be found as follows :CPI in 2020 = CPI in 2014(1 + inflation rate)CPI in 2020 = 100(1 + 0.02)CPI in 2020 = 102Salary required in 2020 = Salary in 2014(CPI in 2020/CPI in 2014)Salary required in 2020 = 55000(102/100)Salary required in 2020 = $56,100 (nearest cent)Hence, the salary required in 2020 to keep up with inflation is $56,100.
Learn more about cost of goods and services here:
https://brainly.com/question/1350233
#SPJ11
Compare investment and manufacturing productivity in the U.S with investment and manufacturing productivity in japan.
The United States and Japan both exhibit distinct traits and performance in terms of investment and manufacturing productivity.
The United States has long been renowned for its favourable business environment and thriving manufacturing sector. Due to its robust economy, cutting-edge technology, and qualified workforce, it draws substantial domestic and international investments. The United States places a strong emphasis on capital-intensive industrial processes that boost productivity by utilising cutting-edge technology and automation. Additionally, the U.S. prioritises research and development, which results in ongoing improvements in manufacturing methods.Japan, on the other hand, is known for its efficient operations and high-quality manufacturing.
learn more about performance here :
https://brainly.com/question/33454156
#SPJ11
Cubby Compressors has had relatively steady sales volume for years. The introduction of a new high-end "biscuit" model for the professional contractor market has added the potential for additional sales. The operations manager is also concerned about losing sales if product is not readily available. The current sales and operations plan is given below. Assume all days-ofsupply calculations are based on a 20 -day month and that back orders are to be filled from current production. a. Propose a revised production plan that brings the days of supply to the target of five days for the next six months. b. What would the plan look like if you had a hiring freeze at 45 employees maximum and still want to achieve the target five days of supply? c. What other options are available to not exceed the 45-employee limit and still not experience inventory shortages and related customer service problems? Cubby Compressors Sales and Operations Planning Spreadsheet
A revised production plan refers to an updated or modified plan for producing goods or delivering services. It is a revised version of the original production plan, taking into account new information, changes in circumstances, or adjustments to the initial plan.
a. To propose a revised production plan that brings the days of supply to the target of five days for the next six months, we need to calculate the average daily demand for the "biscuit" model.
First, determine the total demand for the next six months by multiplying the average monthly demand by six. Then, divide this total demand by 20 to get the average daily demand.
Next, subtract the beginning inventory from the average daily demand to calculate the daily production needed.
To maintain a five-day supply, multiply the daily production needed by five to get the total production for five days.
To determine the revised monthly production, divide the total production for five days by the number of working days in a month.
Repeat this calculation for each month in the next six months to create the revised production plan.
b. If there is a hiring freeze at a maximum of 45 employees and the target is still a five-day supply, we need to optimize the production plan within this constraint.
To do this, we can use overtime and subcontracting options. By allowing overtime for existing employees, we can increase the production without hiring additional staff. Additionally, subcontracting some of the production to external suppliers can help meet the target while staying within the employee limit.
By carefully analyzing the production capacity and demand, we can allocate the necessary resources to achieve the target without exceeding the 45-employee limit.
c. Other options to not exceed the 45-employee limit and still avoid inventory shortages and related customer service problems include:
1. Implementing lean manufacturing techniques to reduce waste and improve efficiency, allowing the company to produce more with the existing workforce.
2. Improving forecasting accuracy to better predict demand and adjust production accordingly, reducing the risk of inventory shortages.
3. Implementing inventory management strategies such as just-in-time (JIT) inventory to minimize inventory levels while ensuring product availability.
4. Streamlining the supply chain to reduce lead times and improve delivery reliability, reducing the need for excessive inventory.
5. Implementing cross-training programs to increase workforce flexibility and utilize existing employees in multiple roles, optimizing productivity without exceeding the employee limit.
By implementing these strategies, Cubby Compressors can maintain inventory levels, improve customer service, and avoid exceeding the 45-employee limit.
To know more about the Production Plan visit:
https://brainly.com/question/32075688
#SPJ11
This question is related to chapter 2, LG 2-4 in the book. (a) In the U.S., interest income is taxed. Let's assume the tax rate to be 30%. Then, if you lend $100,000 to someone and get paid $100,000 plus $10,000 interest one year later (10\% interest rate), you need to pay 30%×$10,000= $3,000 to the IRS. The remaining $7,000 is your take-home interest income. Questions: i. (0.5 point) Suppose congress suddenly passed a law that increases interest income tax rate (e.g. from 30% to 50% ). What is the impact on the demand curve of lending? What is the impact on supply curve? ii. (0.5 point) Based on the supply-demand diagram (e.g., Figure 2-4 in the book), what would be the consequence of this law on the equilibrium quantity of lending and the (pre-tax) equilibrium interest rate?
If the interest income tax rate in the U.S. increases from 30% to 50%, there will be an impact on the demand and supply curves of lending.
The demand curve for lending will shift to the left, indicating a decrease in the quantity of lending demanded. The supply curve for lending will also shift to the left, indicating a decrease in the quantity of lending supplied. The consequence of this law on the equilibrium quantity of lending will be a decrease, while the (pre-tax) equilibrium interest rate will increase.
i. An increase in the interest income tax rate from 30% to 50% will affect the demand and supply curves of lending. The demand curve for lending will shift to the left because the higher tax rate reduces the net income borrowers receive, making borrowing less attractive and decreasing the quantity of lending demanded. The supply curve for lending will also shift to the left because the higher tax rate reduces the net income lenders receive, making lending less profitable and decreasing the quantity of lending supplied.
ii. Based on the supply-demand diagram, the consequence of this law on the equilibrium quantity of lending will be a decrease. The leftward shift in both the demand and supply curves will result in a reduction in the quantity of lending exchanged at the equilibrium. The (pre-tax) equilibrium interest rate will increase as a result of the decrease in lending quantity.
Note: Figure 2-4 in the book mentioned in the question should be referred to for a more detailed analysis.
Learn more about supply and demand in lending here: brainly.com/question/31852846
#SPJ11
June 2019 Mexican peso futures contract has a price of $0.05161 per MXN. You believe the spot price in June will be 0.05807 per MXN. a. What speculative position would you enter into to attempt to profit from your bellefs? Short position Long Position b. Calculate your anticipated profits, assuming you take a position in three contracts. MXN500,000 is the contract size of one MXN contract. (Do not round intermediate calculations. Round your answer to the nearest whole number.) c. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? (A Negative value should be indicated with a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)
You would enter into a long position, the anticipated profits would be MXN 9,690 and break-even outcome, if the futures price is an unbiased predictor.
To profit from the expected increase in spot price, enter into a long position. Anticipated profits from three contracts would be 972,000 MXN. If the futures price accurately predicts the spot price, the profit would be 972,000 MXN.
In this scenario, you believe that the spot price in June will be 0.05807 per MXN, while the futures price is $0.05161 per MXN. To profit from this belief, you would enter into a long position, which means buying the futures contracts.To calculate the anticipated profits, you need to find the difference between the anticipated spot price and the futures price, which is 0.05807 - 0.05161 = 0.00646 per MXN. Considering you take a position in three contracts, the anticipated profits would be the product of this difference, the contract size (MXN500,000), and the number of contracts (3). Thus, the anticipated profits would be MXN 9,690.However, if the futures price is an unbiased predictor of the future spot price and the anticipated spot price of 0.05807 per MXN materializes, there would be no profit or loss. This is because the futures price accurately reflected the spot price, resulting in a break-even outcome.Learn more about Spot price here:
brainly.com/question/17055829
#SPJ11
Discuss the role of forecasting in balancing the supply and demand. 2.2 Discuss the importance of qualitative forecasting in supply chain
Forecasting plays an essential role in balancing the supply and demand of goods and services. Forecasting helps in making informed decisions to keep supply and demand at equilibrium. Forecasting can help in determining future needs, production levels, and inventory levels.
Forecasting assists in identifying potential risks and opportunities in the market. Forecasting helps in developing and implementing supply chain strategies, which ultimately improve the overall performance of a business.
Qualitative forecasting is crucial in supply chain management, as it provides a subjective perspective of future demand patterns. Qualitative forecasting considers human behavior, market trends, and other subjective factors that impact supply chain management. Qualitative forecasting techniques include market research, consumer surveys, expert opinions, and historical analysis.
By predicting demand patterns accurately, companies can avoid stockouts and meet customer expectations, leading to improved customer satisfaction. Qualitative forecasting helps in making better business decisions, which leads to improved profitability and competitiveness. In summary, qualitative forecasting is essential in supply chain management, as it helps in predicting customer behavior and trends, leading to better inventory management and improved business performance.
To know more about equilibrium visit:
https://brainly.com/question/30694482
#SPJ11
Income subject to final taxes: domestic corporations: resident foreign corporations Kalusugan Company derived the following income for the year ended December 31, 20A1: a. Interest income of P60,000 on bank deposit in the regular banking unit of a bank. b. Interest income of P30,000 on bank deposit in the foreign currency deposit unit of a bank. c. Interest income of P400,000 on investment in bonds with remaining maturity of two years. d. Interest income of P900,000 on investment in bonds with remaining maturity of four years. e. Interest income of P1,000,000 on investment in bonds with remaining maturity of six years. f. Income from trust fund of P200,000 maintained with a bank. This was composed of P50,000 rental income derived by the fund, P85,000 dividend income from a domestic corporation, and P65,000 gain from sale of shares traded in the Philippine Stock Exchange. g. Dividend income of P100,000 from investment in shares of a domestic corporation. h. Dividend income of P80,000 from investment in shares of a foreign corporation. i. Gain of P1,250,000 from over the counter sale of shares in a domestic corporation. j. Gain of P3,500,000 from sale of condominium unit classified as capital asset with selling price of P5,000,000 and fair market value of P6,000,000. k. Royalty income (considered as passive income) of P1,500,000 from patents and trademarks. I. Franchise fee of P1,000,000 from its franchising business. Required: 1. Determine the final income tax for the year ended December 31, 20 A1 if Kalusugan is a domestic corporation. 2. Determine the final income tax for the year ended December 31, 20A1 if Kalusugan is a resident foreign corporation.
If Kalusugan Company is a domestic corporation, the final income tax for the year ended December 31, 20A1 can be calculated by applying the appropriate tax rates to the different types of income earned by the company.
For interest income on bank deposits, investment in bonds, and income from trust funds, the applicable tax rate is 20%. For dividend income from a domestic corporation, the tax rate is 10%. For gains from the sale of shares in a domestic corporation and the sale of a capital asset (condominium unit), the tax rate is 15%. For royalty income and franchise fees, the tax rate is 30%. To determine the final income tax, the taxable amount of each type of income will be multiplied by the corresponding tax rate, and then the total tax liability will be calculated. If Kalusugan Company is a resident foreign corporation, the tax rates and tax treatment may differ.
Learn more about final income tax here:
https://brainly.com/question/29626291
#SPJ11
