Questions
During the presidential debate in 1990, the candidate Arnold (Democratic) won 22 states and Joseph (Republican)...

During the presidential debate in 1990, the candidate Arnold (Democratic) won 22 states and Joseph (Republican) won 26 states. We are given that the states mean/average for Arnold came out to be 13.545 of the votes with a standard deviation of 10.591. On the contrary, Joseph had an average/mean of 8.423 of the votes with a standard deviation of 6.777. Please compute a 99% Conf. Interval for # of votes in a state a Democratic wins minus the # in a state a Republican wins.

In: Statistics and Probability

Why was transformation, a mechanism for horizontal gene transfer (HGT), used which explains how Neisseria gonorrhoeae...

Why was transformation, a mechanism for horizontal gene transfer (HGT), used which explains how Neisseria gonorrhoeae acquired human DNA? Why was conjugation and transduction not used for this HGT?

In: Biology

Explain the method generally used to allocate the cost of a lump-sum purchase to the individual...

Explain the method generally used to allocate the cost of a lump-sum purchase to the individual assets acquired. please answer in your own words, do not use the outside resources.

In: Accounting

Building on the knowledge acquired, discuss practical engineering design and why engineering for the developing world...

Building on the knowledge acquired, discuss practical engineering design and why engineering for the developing world matters.

discuss practical engineering design and why engineering for the developing world matters.

In: Electrical Engineering

Calculate the EBDAT breakeven point for 2020 in terms of survival revenues for Jen and Larry’s Frozen Yogurt Company. How many cups of frozen yogurt would have to be sold to reach EBDAT breakeven?

Jen and Larry’s Frozen Yogurt Company

     In 2019, Jennifer (Jen) Liu and Larry Mestas founded Jean and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2019 and were estimated to be $1.2 million in 2020.

     Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salary and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2020. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2020.

     An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) occurred at the beginning of 2019. Additional equipment needed to make the amount of yogurt forecasted to be sold in 2020 was purchased at the beginning of 2020. As a result, depreciation expenses were expected to be $50,000 in 2020. Interest expenses were estimated at $15,000 in 2020. The average tax rate was expected to be 25% of taxable income.

  1. Calculate the EBDAT breakeven point for 2020 in terms of survival revenues for Jen and Larry’s Frozen Yogurt Company. How many cups of frozen yogurt would have to be sold to reach EBDAT breakeven?

  2. Show what would happen to the EBDAT breakeven point in terms of survival revenues if the cost of producing a cup of yogurt increased to $1.60 but the selling price remained at $3.00 per cup. How would the EBDAT breakeven change if production costs declined to $1.40 per cup when the yogurt selling price remained at $3.00 per cup?

In: Finance

CHAPTER 18 ALLIED TESTING COMPANY MANUFACTURES AND SELLS THERMOMETERS THAT DETECT BODY TEMPERATURE. IT IS EXPECTING...

CHAPTER 18

ALLIED TESTING COMPANY MANUFACTURES AND SELLS THERMOMETERS THAT DETECT BODY TEMPERATURE. IT IS EXPECTING AN INCREASE IN SALES DUE TO THE CORONAVIRUS PANDEMIC. ALLIED HAS APPLIED FOR A LOAN TO FUND EXPANSION AND THE BANK IS REQUIRING FINANCIAL INFORMATION.

2020 ACTIVITY

NET REVENUE FOR THE YEAR                          $2,700,000

SELLING EXPENSES                                  $ 200,000

ADMINISTRATIVE EXPENSES                           $ 110,000

BEGINNING FINISHED GOODS INVENTORY                $   40,000

ENDING FINISHED GOODS INVENTORY                   $   60,000

BEGINNING WORK IN PROCESS INVENTORY               $ 20,000

ENDING WORK IN PROCESS INVENTORY                  $ 100,000

BEGINNING DIRECT MATERIALS                        $ 250,000

DIRECT MATERIALS PURCHASED DURING MONTH           $ 740,000

ENDING DIRECT MATERIALS                           $   80,000

DIRECT LABOR FOR THE MONTH                        $ 220,000

PLANT UTILITIES FOR THE MONTH                     $   27,000

PLANT INSURANCE FOR THE MONTH                     $   19,000

PLANT MAINTENANCE FOR THE MONTH                   $   30,000

PLANT DEPRECIATION FOR THE MONTH                  $   24,000

REQUIRED:

  1.    PREPARE COST OF GOODS MANUFACTURED FOR 2020.
  1.    PREPARE COST OF GOODS SOLD FOR FEBRUARY 2020.
  1.    PREPARE INCOME STATEMENT FOR 2020.

    CHAPTER 18

    ALLIED TESTING COMPANY MANUFACTURES AND SELLS THERMOMETERS THAT DETECT BODY TEMPERATURE. IT IS EXPECTING AN INCREASE IN SALES DUE TO THE CORONAVIRUS PANDEMIC. ALLIED HAS APPLIED FOR A LOAN TO FUND EXPANSION AND THE BANK IS REQUIRING FINANCIAL INFORMATION.

    2020 ACTIVITY

    NET REVENUE FOR THE YEAR                          $2,700,000

    SELLING EXPENSES                                  $ 200,000

    ADMINISTRATIVE EXPENSES                           $ 110,000

    BEGINNING FINISHED GOODS INVENTORY                $   40,000

    ENDING FINISHED GOODS INVENTORY                   $   60,000

    BEGINNING WORK IN PROCESS INVENTORY               $ 20,000

    ENDING WORK IN PROCESS INVENTORY                  $ 100,000

    BEGINNING DIRECT MATERIALS                        $ 250,000

    DIRECT MATERIALS PURCHASED DURING MONTH           $ 740,000

    ENDING DIRECT MATERIALS                           $   80,000

    DIRECT LABOR FOR THE MONTH                        $ 220,000

    PLANT UTILITIES FOR THE MONTH                     $   27,000

    PLANT INSURANCE FOR THE MONTH                     $   19,000

    PLANT MAINTENANCE FOR THE MONTH                   $   30,000

    PLANT DEPRECIATION FOR THE MONTH                  $   24,000

    REQUIRED:

  2.    PREPARE COST OF GOODS MANUFACTURED FOR 2020.
  3.    PREPARE COST OF GOODS SOLD FOR FEBRUARY 2020.
  4.    PREPARE INCOME STATEMENT FOR 2020.

In: Accounting

Answer for 8 and 9 On October 15, 2016, Koala, Inc. issued a 10 year bond...

Answer for 8 and 9

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]

  • Initially, the bond was sold for the premium price of $1,025.
  • On October 15, 2020, this bond was selling for only $975.
  • The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
  • The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

1. What was the nominal yield on this bond on October 15, 2016? 6% [To 1 decimal place.]

2. What was the current yield on this bond on October 15, 2016?5.36% [To 2 decimal places.]

3. What was the yield to maturity for this bond on October 15, 2016? 5.679% [To 3 decimal places.]

4. What was the risk premium for this bond on October 15, 2016? 1.179% [To 3 decimal places.]

5. What was the nominal yield on this bond on October 15, 2020?6% [To 1 decimal place.]

6. What was the current yield on this bond on October 15, 2020?6.15% [To 2 decimal place.]

7. What was the yield to maturity for this bond on October 15, 2020?6.346% [To 3 decimal places.]

8. What was the risk premium for this bond on October 15, 2020? [To 3 decimal places.]

9. It is now October 15, 2020 and suddenly the Federal Reserve announces a massive program to reduce inflation. Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%. If there is no change in the risk premium expected for this Koala, Inc. bond, what will be this bond’s yield to maturity? [To 3 decimal places.]

In: Finance

1. On January 1, 2020, Riverbed signed an agreement to operate as a franchisee of Copy...

1. On January 1, 2020, Riverbed signed an agreement to operate as a franchisee of Copy Service Inc., for an initial franchise fee of $75,000. Of this amount, $35,000 was paid when the agreement was signed and the balance is payable in four annual payments of $10,000 each, beginning January 1, 2022. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the four annual payments discounted at 7% (the implicit rate for a loan of this type) is $33,872. The agreement also provides that 5% of the franchisee’s revenue must be paid to the franchisor each year. The franchisor requires that Riverbed provide it with some form of assurance verifying the revenue amount used to determine the 5% payment. Riverbed’s revenue from the franchise for 2020 was $760,000. Riverbed estimates that the franchise’s useful life will be 10 years.
2. Riverbed incurred $45,000 in experimental costs in its laboratory to develop a patent, and the patent was granted on January 2, 2020. Legal fees and other costs of patent registration totalled $13,600. Riverbed estimates that the useful life of the patent will be 6 years.
3. A trademark was purchased from Shanghai Company for $28,700 on July 1, 2017. The legal costs to successfully defend the trademark totalled $8,160 and were paid on July 1, 2020. Riverbed estimates that the trademark’s useful life will be 14 years from the acquisition date.

Assume that Riverbed reports using ASPE. Prepare a schedule showing the intangible assets section of Riverbed’s statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 5,275. Enter account name only and do not provide descriptive information.)

Riverbed Corporation
Intangible Assets
December 31, 2020
$
    Total Intangible Assets $

Compute the total amount of expenses resulting from the transactions that would appear on Riverbed’s income statement for the year ended December 31, 2020.

In: Accounting

Part C Question 3 Accounting for Income Taxes                                   

Part C Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Sales

430,000

Less

Cost of Goods Sold

130,000

Administrative expense

    70,000

Warranty expense

60,000

Depreciation- machine

    40,000

Insurance expense

   20,000

   320,000

Profit before income tax

110,000

Following information was extracted from the Statement of Financial Position at 30 June 2020:

2019

2020

Prepaid insurance

24,000

36,000

Machine

400,000

400,000

Less: Accumulated depreciation

40,000

80,000

Provision for warranty

34,000

28,000

Other information was available for the year ended 30 June 2020:

  1. Sales are recorded for income tax purpose at the time the sales are made.
  2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
  3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
  4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
  5. Insurance is allowed as a tax deduction when it is paid.
  6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

  1. Determine the amount of taxable income for the year ended 30 June 2020.
  2. Determine the amount of income tax expense for the year ended 30 June 2020.
  3. Prepare a journal entry to record current tax liability on 30 June 2020.
  4. Determine the amount of tax base for machine.
  5. Determine the amount of temporary difference for machine.
  6. The temporary difference for machine is deductible in this question, is this correct? Explain.
  7. Provide journal entry to record DTA or DTL for machine.

In: Accounting

Question 3 Accounting for Income Taxes                                    &

Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Sales

430,000

Less

Cost of Goods Sold

130,000

Administrative expense

    70,000

Warranty expense

60,000

Depreciation- machine

    40,000

Insurance expense

   20,000

   320,000

Profit before income tax

110,000

Following information was extracted from the Statement of Financial Position at 30 June 2020:

2019

2020

Prepaid insurance

24,000

36,000

Machine

400,000

400,000

Less: Accumulated depreciation

40,000

80,000

Provision for warranty

34,000

28,000

Other information was available for the year ended 30 June 2020:

  1. Sales are recorded for income tax purpose at the time the sales are made.
  2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
  3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
  4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
  5. Insurance is allowed as a tax deduction when it is paid.
  6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

  1. Determine the amount of taxable income for the year ended 30 June 2020.
  2. Determine the amount of income tax expense for the year ended 30 June 2020.
  3. Prepare a journal entry to record current tax liability on 30 June 2020.
  4. Determine the amount of tax base for machine.
  5. Determine the amount of temporary difference for machine.
  6. The temporary difference for machine is deductible in this question, is this correct? Explain.
  7. Provide journal entry to record DTA or DTL for machine.

In: Accounting