Questions
The Henry Keizer Family Foundation (2016) provides an excellent resource for individuals to assess their knowledge...

The Henry Keizer Family Foundation (2016) provides an excellent resource for individuals to assess their knowledge about health insurance.

Do you think that these types of resources are a part of improving quality?

Reference

Henry Keizer Family Foundation. (2016). Health Insurance Quiz. Retrieved from http://kff.org/quiz/health-insurance-quiz/?utm_source=kff&utm_medium=tile&utm_content=home&utm_campaign=consumer

In: Operations Management

7) You purchased a commercial building and land for $305,000 on May 3rd, 2014. The land...

7) You purchased a commercial building and land for $305,000 on May 3rd, 2014. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on February 15th of 2016. (a) What is the allowable tax depreciation amount for the year 2014? (b) What is the allowable tax depreciation amount for the year 2015? (c) What is the allowable tax depreciation amount for the year 2016?

In: Finance

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself...

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

In: Economics

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself...

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

In: Economics

On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for...

On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for $500,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016?

Select the correct answer.

a. $34,835.70
b. $34,834.00
c. $34,837.40
d. $34,839.10
e. $34,840.80

In: Finance

Plot the unemployment rate in the US from 1980-2016 (Hint: Use the FRED web site). What...

Plot the unemployment rate in the US from 1980-2016 (Hint: Use the FRED web site). What is the average unemployment rate in this period? What is the most recent unemployment rate in the US?

Plot the percentage change (yearly) in the unemployment rate and the percentage change (yearly) in the real GDP from 1980-2016. What is the relationship between the fluctuations in the unemployment rate and the fluctuations in the real GDP?

In: Economics

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself...

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

In: Economics

Problem 8-35A (Part Level Submission) The Daniels Tool & Die Corporation has been in existence for...

Problem 8-35A (Part Level Submission)

The Daniels Tool & Die Corporation has been in existence for a little over three years. The company’s sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers’ specifications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hours—the absorption-costing (full) method. Overapplied or underapplied overhead is treated as an adjustment to Cost of Goods Sold. The company’s income statements and other data for the last two years are as follows:
DANIELS TOOL & DIE CORPORATION
2015–2016 Comparative Income Statements
2015 2016
Sales $832,800 $1,015,100
Cost of goods sold
Finished goods, January 1 24,100 17,900
Cost of goods manufactured 545,100 656,200
Total available 569,200 674,100
Finished goods, December 31 17,900 13,300
Cost of goods sold before overhead adjustment 551,300 660,800
Underapplied factory overhead 35,600 14,100
Cost of goods sold 586,900 674,900
Gross profit 245,900 340,200
Selling expenses 81,400 94,700
Administrative expenses 69,900 74,500
Total operating expenses 151,300 169,200
Operating income $94,600 $171,000
Daniels Tool & Die Corporation Inventory Balances
January 1, 2015 December 31, 2015 December 31, 2016
Raw material $21,500 $29,100 $11,000
Work in process $40,000 $47,300 $63,000
Direct labour hours (used in WIP) 1,320 1,670 2,120
Finished goods $24,100 $17,900 $13,300
Direct labour hours (used in FG) 1,520 1,090 820

Daniels used the same predetermined overhead rate in applying overhead to its production orders in both 2015 and 2016. The rate was based on the following estimates:
Fixed factory overhead $24,870
Variable factory overhead $154,194
Direct labour hours (used in WIP) 24,870
Direct labour costs (used in FG) $149,220

In 2015 and 2016, the actual direct labour hours used were 20,300 and 23,100, respectively. Raw materials put into production were $291,900 in 2015 and $370,200 in 2016. The actual fixed overhead was $42,300 for 2015 and $33,980 for 2016, and the planned direct labour rate was the direct labour achieved.

For both years, all of the administrative costs were fixed. The variable portion of the selling expenses results from a 5% commission that is paid as a percentage of the sales revenue.

*(a)

For the year ended December 31, 2016, prepare a revised income statement for Daniels Tool & Die Corporation using the variable-costing method. (Round answers to 0 decimal places, e.g. 5,275.)

In: Accounting

Question 2                                         &nbs

Question 2                                                                                    

In 2015, Corbus Co., a Canadian company, created a foreign subsidiary called Snazzy Ltd. by investing $2,000,000 CAD (800,000 FC) in return for all of Snazzy’s common shares. In preparing to start operations, Snazzy acquired equipment for 960,000 FC and took out a 320,000 FC loan. Snazzy is committed to repaying the loan in 3 years. In 2016, Snazzy acquired a tract of land for 320,000 FC. All dividends were paid on December 31 of the years in which they were declared.

Snazzy’s financial statements for its first 2 years of operations are presented below.

Snazzy Ltd.

Statement of Financial Position

As of December 31

(in FC)

                                                                                                      2016                          2015

Assets:

Current assets:

Cash                                                                                      $     48.000                $   256,000

Accounts receivable                                                                                64,000                        48,000

                                                                                                     112,000                     304,000

Noncurrent assets:

Land                                                                                            320,000                            -

Equipment                                                                                 960,000                      960,000

Accumulated amortization                                                     (192,000)                     (96,000)

                                                                                                   1,088,000                     864,000

Total assets                                                                           $ 1,200,000               $ 1,168,000

Liabilities and shareholder’s equity:

Current liabilities:

Accounts payable                                                                        16,000                        32,000

Noncurrent liabilities:

Loan payable                                                                              320,000                      320,000

                                                                                                      336,000                      352,000

Shareholder’s equity:

Share capital                                                                                          800,000                      800,000

Retained earnings                                                                     _64,000                      _16,000

                                                                                                      864,000                      816,000

Total liabilities and shareholder’s equity                         $ 1,200,000               $ 1,168,000

Snazzy Ltd.

Statement of Comprehensive Income

For the year ended December 31

(in FC)

                                                                                                    2016                           2015

            Revenue                                                                   $ 480,000                  $ 352,000

            Expenses:

                        Amortization                                                       96,000                        96,000

                        Interest                                                                64,000                        64,000

                        Other expenses                                               192,000                      128,000

                                                                                                   352,000                      288,000

            Net and comprehensive income                           $ 128,000                  $   64,000

Snazzy Ltd.

Statement of Changes in Equity – Retained Earnings Section

For the year ended December 31

(in FC)

                                                                                                                 2016              2015

Retained earnings, beginning of year                                         $   16,000       $          -

Net income                                                                                           128,000             64,000

Dividends declared                                                                             (80,000)          (48,000)

Retained earnings, end of year                                                    $   64,000       $    16,000

Selected exchange rates

when the equipment was purchased                              1FC = $2.30 CAD

when the loan was negotiated                                          1FC = $2.40 CAD

when the land was purchased                                          1FC = $1.90 CAD

average during 2015                                                           1FC = $2.20 CAD

December 31, 2015                                                             1FC = $2.00 CAD

Average during 2016                                                          1FC = $1.70 CAD

December 31, 2016                                                             1FC = $1.50 CAD

Required:

Assume that Snazzy’s functional currency is the Canadian dollar.

Translate Snazzy’s 2015 financial statements using the appropriate method.

Independently calculate the translation gain/loss.

Repeat (i) and (ii) for 2016.

Assume that Snazzy’s functional currency is the FC.

Translate Snazzy’s 2015 financial statements using the appropriate method.

Independently calculate the translation gain/loss.

Repeat (i) and (ii) for 2016.

In: Accounting

The Daniels Tool & Die Corporation has been in existence for a little over three years....

The Daniels Tool & Die Corporation has been in existence for a little over three years. The company’s sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers’ specifications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hours—the absorption-costing (full) method. Overapplied or underapplied overhead is treated as an adjustment to Cost of Goods Sold. The company’s income statements and other data for the last two years are as follows:

DANIELS TOOL & DIE CORPORATION
2015–2016 Comparative Income Statements
2015 2016
Sales $833,900 $1,015,100
Cost of goods sold
Finished goods, January 1 24,000 17,800
Cost of goods manufactured 544,600 654,400
Total available 568,600 672,200
Finished goods, December 31 17,800 13,300
Cost of goods sold before overhead adjustment 550,800 658,900
Underapplied factory overhead 35,800 14,100
Cost of goods sold 586,600 673,000
Gross profit 247,300 342,100
Selling expenses 81,900 94,500
Administrative expenses 69,000 74,400
Total operating expenses 150,900 168,900
Operating income $96,400 $173,200
Daniels Tool & Die Corporation Inventory Balances
January 1, 2015 December 31, 2015 December 31, 2016
Raw material $21,700 $29,900 $10,400
Work in process $40,500 $47,700 $63,400
Direct labour hours (used in WIP) 1,350 1,630 2,280
Finished goods $24,000 $17,800 $13,300
Direct labour hours (used in FG) 1,470 1,010 840


Daniels used the same predetermined overhead rate in applying overhead to its production orders in both 2015 and 2016. The rate was based on the following estimates:

Fixed factory overhead $24,790
Variable factory overhead $153,698
Direct labour hours (used in WIP) 24,790
Direct labour costs (used in FG) $148,740


In 2015 and 2016, the actual direct labour hours used were 20,200 and 23,800, respectively. Raw materials put into production were $291,500 in 2015 and $370,600 in 2016. The actual fixed overhead was $42,300 for 2015 and $23,240 for 2016, and the planned direct labour rate was the direct labour achieved.

For both years, all of the administrative costs were fixed. The variable portion of the selling expenses results from a 5% commission that is paid as a percentage of the sales revenue.

*(a)

For the year ended December 31, 2016, prepare a revised income statement for Daniels Tool & Die Corporation using the variable-costing method. (Round answers to 0 decimal places, e.g. 5,275.)

In: Accounting