20. Let's say a product was traded in a fully competitive market and the market price of this product was given at 50. The total cost function C=10+2Q+3Q2 indicating the relationship between the total cost and output of this company was given. Find the profit maximization output and profit margin.

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The sKansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company?

$180,000

$210,000

$120,000

$60,000

After a successful drive aimed at members of a specific national association, Online Publishing Company received a total of $180,000 for 3-year subscriptions beginning April 1 and recorded this amount in the unearned revenue account. Assuming Online records adjustments only at the end of the calendar year, the adjusting entry required to reflect the proper balances in the accounts at December 31 is to:

1. Debit subscription revenue for $135,000 and credit unearned revenue for $135,000.
2. Debit unearned revenue for $135,000 and credit subscription revenue for $135,000.
3. Debit subscription revenue for $45,000 and credit unearned revenue for $45,000.
4. Debit unearned revenue for $45,000 and credit subscription revenue for $45,000.

Laelia Ltd sells airplanes for $20,000 each. These airplanes are designed for individual use and can transport customers up to 200 kilometres in one go. Laelia Ltd can also provide custom-designed hangars for its customers’ airplanes at Dawson Creek, Queensland for $2,500 per year. These hangars can only cater to airplanes sold by Laelia Ltd due to regulations. Laelia Ltd sells these items either separately or as a package.

On 1 October 2020 Laelia Ltd enters into a contract to sell an airplane and one year of hangar facilities to Peter Do for $20,500. Cash payment is required at this date, after which legal title to the airplane passes to Peter Do and the hangar services commence. Peter Do is free to fly the airplane anywhere and he is not bound by any restriction. Please ignore effects of GST.

REQUIRED:

(a) Explain how Laelia Ltd would account for the revenue associated with this transaction with Peter Do in accordance with the requirements of AASB 15 ‘Revenue from Contracts

Step 1 – Identify the contract

Step 2 – Identify the performance obligation(s)

Step 3 – Identify the transaction price

Step 4 – Allocate the transaction price

Step 5 – Recognise the revenue as performance obligation(s) is(are) satisfied

1. What is the relationship between price elasticity of demand and total revenue?

2.You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.

3. If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes take place in this market?

Use your own words to explain， thank you.

Germany introduced its version of the above game " Heimfreiheit und Spaß." The German branch strongly argued against using the standard deviation of the online game population. They argued that the game is unique in a unique environment. They reported the following daily revenue. Create a 92% confidence interval for the population mean of daily revenue in Germany Day Revenue

1. Consider the following realized annual returns:

The average annual return on Stock A from 2006 to 2015 is closest to:

2. Use the table for the question(s) below.

Consider the following average annual returns:

What is the excess return for the portfolio of small stocks?

3. Use the following information to answer the question(s) below.

If the expected return on the market is 11% and the risk-free rate is 4%, then the expected return of investing in IBM is closest to:

4.

1. Use the following information to answer the question(s) below.

   Company	Ticker	Beta
   Ford Motor Company	F	2.77
   International Business Machines	IBM	0.73
   Merck	MRK	0.90

   
   If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of investing in Ford Motor Company is closest to:

   		20.6%
   		10.0%
   		17.1%
   		16.2%

5.

1. Use the following information to answer the question(s) below.

   Company	Ticker	Beta
   Ford Motor Company	F	2.77
   International Business Machines	IBM	0.73
   Merck	MRK	0.90

   
   If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of investing in Merck is closest to:

   		10.0%
   		9.4%
   		10.4%
   		5.4%

Debbie Rader, William Allen, and Jeffrey Townsend are owners in “RAT, Inc.” – a “C” Corporation engaged in pest control services. Pertinent information regarding RAT, Inc. is summarized below.

-Social security numbers are as follows; Debbie – 623-98-0123; William – 410-63-4297; Jeffrey – 855-21-1750. Debbie is the President of the company.

-The address of the company is 1421 Ocean View Drive, Anderson, ME 04842.

-The company was formed and began operations on January 1, 2013.

-The business code is 541990.

-The federal identification number is 67-4598288

-The corporation uses the cash method of accounting and the calendar year for reporting.

-The corporation recorded $14,002 depreciation for book purposes but $21,602 for income tax purposes (using MACRS methodology). Assume none of the depreciation creates a tax preference or adjustment for AMT purposes.

-All loan borrowings were used exclusively for acquisition of equipment, consequently, all interest is considered business interest.

-The owners original capital contributions are as follows: Rader - $100,000 for 50% ownership; Allen - $60,000 for 30% ownership; and Townsend $40,000 for a 20% ownership in the stock of the business. No capital contributions occurred in 2017.

-Salary payments were made to the owners as follows: Rader - $90,000, Allen and Townsend - $30,000 EACH.

-Each of the owners were paid a dividend as follows: Rader - $60,000; Allen - $36,000; Townsend - $24,000. There were no distributions of any non-cash property.

-The equipment loan is nonrecourse debt to the shareholders. .

-None of the stockholders sold any portion of their ownership interests during the year.

-The company has no available tax credits and is not subject to AMT. The company’s operations are entirely restricted to the local geographic area in Maine. All shareholders are U.S. citizens. The company had no foreign operations, no foreign bank accounts, and no interest in any foreign trusts or foreign corporations. The company’s stock is not publicly traded.

-The company is not subject to the consolidated audit procedures. The company files its federal tax return in Cincinnati, Ohio.

-Debbie Rader lives at 415 Knight Ct., Anderson, ME 04842, William Allen lives at 692 Radford Dr., Anderson, ME 04842; and Jeffrey Townsend lives at 342 Coastal Rd., Anderson, ME 04842.

-No ownership changes occurred during the year.

-The company’s marketable securities represent small investments (<1%) in a number of publicly traded companies and mutual funds. It sold its holdings of XYZ common stock (carried as Marketable Securities on the balance sheet) on July 20 for $15,000. The corporation purchased this investment several years ago for $25,000.

The current income statement for the corporation reflected book net income of $98,100 AFTER book depreciation has been taken on the equipment and the loss on the sale of XYZ common stock. The following information was taken from the partnership’s financial statements for the current year.

Cash Receipts:

Cash Disbursements:

The current income statement for the company reflects a book net income of been made to record regular depreciation in the amount of $14,002.

The balance sheets for the corporation were as follows for the current year:

request 1120 schedul m-1 and form 4562

Researchers want to know if there are significant differences in life satisfaction based on college students' overall financial status. In a Word document go thru the 5 steps for hypothesis testing and upload your answer here.

Exercise 20-23 (Algo) Error correction; three errors [LO20-6]

Below are three independent and unrelated errors.

1. On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $2,300. In January 2021, when it paid employees for the December 27–January 2 workweek, Wolfe-Bache made the following entry:
   

2. On the last day of 2020, Midwest Importers received a $100,000 prepayment from a tenant for 2021 rent of a building. Midwest recorded the receipt as rent revenue. The error was discovered midway through 2021.
3. At the end of 2020, Dinkins-Lowery Corporation failed to accrue interest of $9,000 on a note receivable. At the beginning of 2021, when the company received the cash, it was recorded as interest revenue.

Required:
For each error:

1. What would be the effect of each error on the income statement and the balance sheet in the 2020 financial statements?

error A

error B

error C

2. Prepare any journal entries each company should record in 2021 to correct the errors.