You are not required to report rental income on your tax return if you rent the house for less than 15 days during the taxable year.
And the only deductions permitted are those that you would be permitted as a homeowner.Specifically, you can only deduct mortgage interest and real estate taxes (or, if applicable, casualty losses).
What is most commonly rented?
Primarily for Rent. The residence is considered rental property if it is rented for at least 15 days per year and is not used for personal purposes for more than the greater of (1) 14 days or (2) 10% of the total days rented.
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assume that one year ago you bought 100 shares of a mutual fund for $13.50 per share, you received $0.42 per share capital gain distribution during the past 12 months, and the market value of the fund is now $17. calculate the percent of total return for your investment.
Total return per share=Capital gain distribution +sale value-purchase value=$0.42+$17-$13.5
=$0.42+$3.5
=$3.92
total return for 100 shares=100*$3.92
=$392
return on investment=$392*100/$1,350
=29.04%
A share is a monetary tool that represents the part ownership of a business enterprise. A stock is a monetary device that represents element ownership in one or more corporations. The price of distinct shares of a business enterprise may be the same for each different.
Comparable Terminology. Of the two, "stocks" is the extra fashionable, commonplace term. It's miles regularly used to explain a slice of ownership of 1 or extra corporations. In assessment, in commonplace parlance, "stocks" have an extra unique which means: It often refers to the possession of a particular company.
A share fee – or an inventory fee – is the quantity it might value to shop for one proportion in a company. The rate of a proportion is not fixed, however, fluctuates according to marketplace situations. It will likely grow if the employer is given the impression to be doing nicely, or fall if the company isn't always meeting expectancies.
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First-stage allocation of overhead costs to each cost pool is accomplished using all of the following except________.
First-stage allocation of overhead costs to each cost pool is accomplished using all of the following except grouping batch and unit-level activities.
What is the first stage allocation?The process of allocating overhead costs to activities is known as a first-stage allocation. This allocation, which is used in an activity-based costing system, is the first step in the ultimate allocation of overhead expenses to cost objects.
Calculating the level of cost driver activity employed by the product by the specified overhead rate for each activity determined in step 4 and allocating overhead costs to goods. This procedure is frequently referred to as applied overhead.
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g which of the following is not true for a conventional fixed rate mortgage? group of answer choices a. it is fully amortizing. b. by half way through the term of the loan, the principal portion of the monthly payment is greater than the interest portion. c. interest payments early on are much greater than the principal payments. d. monthly payments are fixed.
An interest rate on a "fixed-rate" mortgage is one that won't alter during the course of your mortgage. A mortgage is referred to as "conventional" (conforming) if it complies with established standards for the loan's size and your financial status.
Explain about the conventional fixed rate mortgage?
If you don't have much debt and have a good credit score, a conventional loan is a wonderful choice. By paying 20% of the loan amount up advance, you can eliminate PMI and minimize your monthly mortgage payments. Conventional loans are available with a down payment as low as 3% if you are unable to make a sizable upfront payment.
In an uncertain world, having a conventional loan with a fixed rate gives you peace of mind. Regardless of what the market does in the future or what the present interest rates increase to, you will always know exactly how much your interest rate and subsequent payment will be.
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what is the one overriding goal of a corporation in the secular sphere, according to lead attorneys representing the government in the hobby lobby case?
Contraceptive legislation enacted under the Patient Protection and Affordable Health Care Act violates commercial private companies' rights to religious liberty.
What is legislation?Making and enacting laws by legislation, local, state, or national legislative bodies gives religious liberty.In other contexts, legislation may be used to apply local ordinances and rules and regulations issued by administrative agencies in the exercise of delegated legislative functions. Act Enforcement. A bill that has passed both houses of Congress, been submitted for registration, ratification, signature by the Governor, or through the Office of the Governor, and has been printed. This is a permanent measure with legal effect until it is religious liberty. Primary Law - Law or Statute. Secondary Laws – Statutes (often called SI, Codes, Orders, Regulations, Regulations) To provide detailed rules, regulations or codes of conduct in a particular area of activity (e.g. Road Rules).To learn more about legislation from the given link :
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assuming a 360-day year, proceeds of $44,732 were received from discounting a $45,997, 90-day note at a bank. the discount rate used by the bank in computing the proceeds was a.9% b.12% c.13% d.11%
The discount rate used by the bank in computing the proceeds was 9% option A
What is the discount rate?Generally, The interest rate that is levied on commercial banks and other financial institutions by the Federal Reserve Bank for short-term loans that these institutions take out is referred to as the discount rate.
The interest rate that is employed in discounted cash flow analysis (also known as DCF analysis) to assess the present value of future cash flows is referred to as the discount rate.
The interest rate that a central bank applies to loans and advances it makes to commercial banks is referred to as the bank rate or, in American English, the discount rate.
Discount rate, Let's consider A is the bank discount rate
Net proceeds=Total amount of note - Discounting charges
44,732 =45,997 - (45,997 × A×90/360)
44,732 -45,997= - (45,997 × A×90/360)
A=0.099
A=9% Option A
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if the marginal physical product (mpp) is falling, then the group of answer choices marginal cost of each unit of output is rising. total cost of each unit of output is falling. marginal cost of each unit of output is falling. total cost of each unit of output is rising.
If the marginal physical product (MPP) is falling, then the marginal cost of each unit of output is rising.
The marginal sales product is calculated by multiplying the marginal physical product (MPP) of the aid via the marginal sales (MR) generated. The MRP assumes that the prices on different factors continue to be unchanged and enables determining the most useful level of aid.
The marginal made from capital (MPK) is the additional output resulting, ceteris paribus, from the usage of a further unit of physical capital, including machines or homes utilized by companies.
The maximum retail rate is labeled on every product. It is the very best fee decided via the manufacturers for a specific product before the sale in India. Stores can't rate clients more than MRP. The most retail rate published on a product is along with all taxes.
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during the coronavirus pandemic, demand for frozen pizza almost doubled without price changes for these products. economists call this multiple choice proportional demand. inelastic demand. a movement along a demand curve. a shift in the demand curve. flexible demand.
During the coronavirus pandemic, demand for frozen pizza almost doubled without price changes for these products. economists call this a shift in the demand curve.
What causes a shift in the demand curve?The demand curve is a linear curve that is used to depict the relationship between the price of a good and the quantity demanded of the good. The demand curve has a negative curve.
When there is a change in the demand of a good as a result of changes other than the price of a good, the demand curve would shift outward or inward. A shift outward would indicates an increase in demand. While a shift inward would indicate a shift to the left.
As a result of the increase in demand for frozen pizza during the Corona virus, the demand curve for pizza would shift to the right.
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candice is looking for a specific book for her macroeconomics research project. what is the first thing she should do to most effectively conduct her library search?
The first thing she should do to most effectively conduct her library search is ask a librarian.
What is library search?A search option for books, articles, periodicals, newspapers, and editorials ought to be included on the homepage. It typically sits at the very top of a website. The computers should be configured with the library's homepage as their default setting. If not, enter the online address for the library into your computer's internet browser. An overview of a topic can be found in a reference source, which is frequently a great place to start your study, especially if you are not familiar with the subject in-depth. To elucidate ideas and give context for a topic, reference materials can be obtained.The first thing she should do to most effectively conduct her library search is ask a librarian.To learn more about library search refer to:
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gloria will be managing a brand-new call center. her employees are all new to the company, and she will be conducting their initial training. what should gloria keep in mind as she prepares this training presentation?
The thing that Gloria should keep in mind as she prepares this training presentation when conducting their initial training is that She should be careful to define specialized terms or concepts.
What is training presentation?The training presentation can be described as the training program that can be used by the company to teach new people about how to carry task that is needed by them in the organization , in the presentation class, different software can be used such as the power point by the Microsoft.
It should be noted that this is the presentation that is been used by Gloria when he was trying to set up her company and to teach the new employees about the process to be followed in caring out their daily activities in the organization.
In conclusion, she should be able to make sure she define specialized terms or concepts so that the employees can have the better understanding of what she is trying to pass across to them during the presentation program.
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which of the following is the most fundamental issue that economics addresses? responses choice of appropriate technology choice of appropriate technology reduction of unemployment reduction of unemployment reduction of budget deficit reduction of budget deficit promotion of privatization promotion of privatization use of scarce resources
The correct option is 'use of scarce resources'. This is the most fundamental issue that economics addresses.
Economics is the study of how economies function and the activities and interactions of economic agents. The study of microeconomics examines what are thought to be the fundamental components of the economy, such as individual agents, markets, and the relationships that result from those interactions. Examples of individual agents include homes, businesses, buyers, and sellers. Macroeconomics examines the economy as a system in which production, utilisation, saving, and investment coexist, as well as factors influencing it such as the employment of labour, capital, and land resources, monetary inflation, economic growth, and policy initiatives that have an effect on these components.
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which of the following is an example of human capital? a. the amount you get paid each week to work at the library b. the things you have learned this semester c. the comfortable chair in your dorm room where you read economics texts d. any capital goods that require a human to be present to operate
The example of human capital is any capital goods that require a human to be present to operate as human being is required for the functioning of the machinery .
What is human capital?
Social scientists use the idea of human capital to refer to character traits that are seen advantageous in the manufacturing process. It includes education, excellent health, knowledge, and skills of the workforce. Earnings of any individual are significantly influenced by human capital.
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A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until?.
This same firm's demand curve is digression to its total cost curve.
What is demand?
Demand is an economic term that refers to a person's willingness to buy goods and services as well as their willingness to pay a certain price for them. When the price of a good as well as service rises, the quantity demanded falls. Similarly, lowering the price of a good as well as service raises the quantity demanded.
Demand is a concept that both consumers and businesses are familiar with as it makes perfect sense as well as occurs naturally throughout almost any day. For example, shoppers who have their eye on a product will buy more if the price is low. When prices rise, such as when the seasons change, shoppers buy fewer items, or none at all.
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frontier corporation sells units for $50, has unit variable costs of $20, and fixed costs of $300,000. if frontier sells 15,000 units, what is its degree of operating leverage?
Its degree of operating leverage is 3.00.
Define operating leverage.
The degree of operating leverage quantifies how much a company's operating income shifts in reaction to a shift in sales. Analysts can assess the effect of any change in sales on corporate earnings with the help of the DOL ratio. It is a metric for assessing the sensitivity of an organization's operational income to sales.
A percentage change in sales results in a proportional change in operating income, which is calculated by the degree of operating leverage. It is a reference to the financial ratio that calculates how changing sales affect operational income (EBIT).
Contribution margin is ($50 - $20) × 15,000 = $450,000.
Profit is $450,000 - $300,000 = $150,000.
Degree of operating leverage is $450,000/$150,000 = 3.
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a construction firm can achieve a $15,000 cost savings in year 1 and increasing by $2,000 each year for the next 5 years by converting their diesel engines to biodiesel fuel. at an interest rate of 15%, what is the present equivalent of the savings?
19194.4 is the present equivalent of the savings for the given question
The equivalent annual worth of the savings will be calculated thus:
Annual cost savings in year 1 = $15000
Increase in annual cost savings = $2000
Project period = 5 years
Interest rate = 15%
Annual worth of savings = A + G(A/G, 15%, 5)
= 15000 + 2000(15,000/2000, 15%, 5)
= 15000 + 2000(7500, 0.15,5)
= 15000 + 2000(2.0972)
= 19194.4
Therefore, the annual worth of savings will be $19194.4
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on january 1, 2020, chamberlain corporation pays $658,000 for a 60 percent ownership in neville. annual excess fair-value amortization of $23,000 results from the acquisition. on december 31, 2021, neville reports revenues of $542,000 and expenses of $367,000 and chamberlain reports revenues of $755,000 and expenses of $403,000. the parent figures contain no income from the subsidiary. what is consolidated net income attributable to chamberlain corporation?
If the parent figures contain no income from the subsidiary. The consolidated net income attributable to chamberlain corporation is $338,200.
Consolidated net incomeNet income for neville
Net income = $542,000 - $367,000
Net income = $175,000
Net income for chamberlain
Net income = $755,000 - $403,000
Net income = $352,000
Now let determine the consolidated net income ( chamberlain corporation)
Consolidated net income = ($175,000 + $352,000 -$23,000) - ($175,000 - $23,000 × (1-.60)
Consolidated net income =( $175,000 + $352,000 -$23,000) - ($175,000 - $23,000 × .40)
Consolidated net income = $504,000 - $165,800
Consolidated net income = $338,200
Therefore the amount of $338,200 was attributed to chamberlain .
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using an abc system, a company has estimated overhead of $2,100,000. they expect to use 1,000,000 machine hours and 500,000 labor hours. abc has identified this as a machine-hour related activity. the activity rate for this activity is .
This behaviour is tied to machine hours, according to ABC. $21.10 machine per hour is the activity rate for this activity.
= $2,100,000 ÷ 1,000,000
= $21.10 machine per hour
What is Overhead Rate?
The overhead rate, also referred to as the overhead percentage, is the amount your business spends on manufacturing items or providing services to customers.
To calculate the overhead rate, divide the indirect costs by the direct costs and multiply the result by 100. The overhead rate is a cost involved in producing a good or service.
The cost of the corporate headquarters is an example of an overhead expense that isn't directly tied to output. An overhead rate is applied to the direct production-related costs in order to disperse or allocate the overhead costs based on specific indicators.
A cost associated with the production of a good or service is called an overhead rate. Overhead costs are expenses, such as the cost of, that are not directly related to output.
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which variation of a new-venture team is described as a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for a business?
Internal Innovation is the variation. Internal Innovation specifically covers approaches that focus on the resources, ideologies, processes, and people within a company.
What is Internal Innovation ?Internal innovation is important because it enables businesses to set themselves apart from the competition. Many leading technology companies work with incumbents so as to spread the cost of research and development, attract venture capital and grow.
Internal Innovation refers to approaches that focus on a company's resources, ideologies, processes, and people, which could include harnessing and exploring HR, R&D, company policy, employee engagement, management structures, legal conventions, and more.
Research and development is the most common type of internal process for technology and innovation in organisations. R&D is the search for and development of new technologies, products, and/or processes within a company through creative efforts.
R&D has the disadvantage of being slower and more expensive, and it can be disrupted by the departure of key personnel.
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client-side marketing researchers who are planning to conduct research on behalf of their own companies are often required to submit proposals prior to conducting research. true false
Client-side marketing researchers are frequently obliged to submit proposals before beginning research if they intend to carry out studies on behalf of their own companies is True
Explain about the Market research proposal?
The purpose of a market research proposal is to offer your services to potential clients by outlining the benefits of working with you on their project or research study.
Making crucial business decisions, obtaining investments and funding, identifying new company prospects, and even preventing business disasters are some of the broad objectives that market research may assist firms in achieving.
In roughly 3-5 pages, the proposal should cover the problem statement, objectives, research methodology, research activities, and a timetable. Here is a sample proposal that you can use as a guide. Every building project is different from the next, and each one has its own operating environment and set of technical specifications.
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suppose you are applying for a mortgage loan. the loan officer tells you that if you get the loan, the bank will keep the house title until you pay back the loan. which problem of asymmetric information is the bank trying to solve?
The bank and other financial institutions mortgage the property to cover the potential default risk in order to be on the safe side and reclaim the loan funds.
While every bank makes efforts in providing house loans. They run the danger of having defaulters because they are lending institutions. Since the financed amount is too high for the banks to lend to any one person, if a customer defaults or becomes an NPA, the bank will lose the money it had given to that specific consumer.So, in order to be on the safe side and to offset the losses associated with failure, the bank has mortgaged the property on which they are providing money. Once the debt is paid off, they do disclose the original property documents.
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adorn, a designer boutique, extends a job offer in writing to jenna. the company requests for a written acknowledgement of the job offer from her. in this scenario, jenna should write a(n
Jenna should write a job acceptance letter.
What is job acceptance letter?Your job acceptance letter will contain important information about your new job. The correct spelling is: Kim Isaacs, Monster Resume Expert. He was professional and sent me a letter of acceptance. Writing an offer letter is a good guideline for job seekers who decide to accept a job offer. The Acceptance Letter is one of the final steps in the job application process and is important to confirm your acceptance of the position with your employer, including important terms and conditions of employment. Writing a professional acceptance letter is an important step in starting your career at a new company.A Letter of Acceptance is a letter from a university acknowledging that you have been admitted.Receiving your first letter of acceptance is exciting, but don't make any hasty decisions just yet.To learn more about job acceptance letter from the given link :
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what includes all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information?
E-business includes all activities related to the internal and external operations of a business, such as exchanging real-time information, servicing customer accounts, and collaborating with partners.
E-business OR electronic business refers to any process that a business enterprise conducts over the web. Business enterprises include any governmental, for-profit, or nonprofit entity. E-business synchronizes all the activities of the supply chain to make the business operations more efficient and improve customer experience with reduced cost and faster response.
E-business is not a technology business itself but it is a business of any nature that uses new technologies in order to boost management processes. A few examples of e-business are auction sites, software developer sites, online ticket reservation sites, etc.
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joey realizes that he has charged too much on his credit card and has racked up $4,600 in debt. if he can pay $125 each month and the card charges 18 percent apr (compounded monthly), how long will it take him to pay off the debt?
Debt - Joey would take approximately 53.93 months.
What is Debt?
An obligation to pay money or another agreed-upon value to a third party, the creditor, is known as a debt. Debt differs from an immediate purchase in that payments are deferred or made in instalments. A sovereign state or nation, a local government, a business, or an individual may be liable for the debt. Contractual provisions governing the sum and schedule of principal and interest repayments typically apply to commercial debt. Debt includes mortgages, bonds, notes, and loans. Debt, as opposed to equity, is a type of financial transaction in financial accounting. The phrase could also be used metaphorically to refer to duties of a moral nature and other interactions without a monetary exchange.
Given : $4,600 in debt can pay $125 each month 18 percent Apr.
An obligation to pay money or another agreed-upon value to a third party, the creditor, is known as a debt. Debt differs from an immediate purchase in that payments are deferred or made in instalments.
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the interest cost on the projected benefit obligation is found by multiplying what two amounts? multiple select question. projected benefit obligation at the beginning of the year assumed discount rate average benefit obligation over the course of the year market interest rate
These two sums are multiplied by the projected benefit obligation at the beginning of the year and the expected discount rate to get the cost of interest on the estimated benefit obligation.
An actuarial evaluation of what a corporation would require today to satisfy future pension commitments is called a projected benefit obligation (PBO). The projected benefit obligation (PBO) is updated to reflect anticipated compensation in the upcoming years and is based on the assumption that the plan won't be terminated anytime soon.
The projected benefit obligation covers the anticipated future work that employees are expected to perform, whereas the accumulated benefit obligation represents the current value of a pension liability based on the cumulative labor to date.
The estimated total of a company's pension plan liabilities at any given time is known as the accumulated benefit obligation. ABO is calculated without taking into account potential future wage increases and is based on the premise that the pension plan will be canceled immediately.
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a company purchased $11,200 of merchandise on june 15 with terms of 3/10, n/45, and fob shipping point. on june 20, it returned $1,760 of that merchandise. the shipping charges for the purchase totaled $1,100. on june 24, it paid the balance owed for the merchandise taking any discount it is entitled to. the cash paid on june 24 equals:
A 3% reduction is granted because the buyer pays the remaining amount within ten days, making the cash payment on June 24 total $10,534 discount.
The term "FOB" (Free On Board) denotes that the seller is responsible for both the expense of loading the goods and for transporting them to the port of export. All costs related to shipping freight, insurance, unloading, and any transportation from the port of arrival to the final destination are the buyer's responsibility. The risk is passed on to the buyer when the goods are loaded at the port of origin.
In accordance with terms of 3/10, n/45, or net 45 days, the seller will give the purchaser an additional 3% discount if the latter settles the balance owing within 10 days of the buy rather than utilizing a 45-day full credit period.
The details provided are:
The total spent was $11,600. (on June 15)
Amount refunded: $2,080 (on June 20)
Cost of shipping: $1,300
On June 24, money is exchanged.
The buyer is entitled to a 3% discount because the payment was made within the allotted 10 days.
Payment in full equals 100%-3%) x ($11,600 - $2,080) + $1,300 = $10,534.4, or almost $10,534.
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if a monopolist can find buyers for 4 units at a price of $7, and if the marginal revenue due to the 5th unit is $2, the highest price at which the monopolist can find buyers for 5 units must be a. $2. b. $3. c. $4. d. $5. e. $6.
Maximum price at which the monopolist can find buyers for 5 units is $6, because it is the price per unit beyond which no one will pay. Therefore, the correct option is (e).
Given,
Units = 4
Price per unit = $7
Total revenue = 4*$7 = $28
Marginal revenue from 5th unit = $2
Total revenue = $28+$2 = $30
Price per unit = $30/5 = $6
An individual, entity, or organization that totally monopolizes the market for a specific service or product is known as a monopolist. A monopolist is inclined to support legislation that reinforces monopolies since it offers them more dominance. Due to the lack of rivalry, a monopolist has no incentive to improve their products. Instead, they are driven by a desire to safeguard the monopoly.
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a new truck cost $50,000 with a residual value of $4,000 has an estimated useful life of five years. using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is:
Depreciation using the declining-balance method is $10698.496.
It is given that the cost of the truck is $50000 and the residual value is $4000. Also, the useful life is five years.
Depreciation through straight-line method = (Net book value - Residual value) ÷ estimated useful life
= ($50000-$4000) ÷ 5
= $46000 ÷5
= $9200
Depreciation rate through straight-line method = (Depreciation expense ÷ Net book value ) ×100
= (9200÷50000)×100
= 18.4%
It is given that the rate of the declining balance method is twice of straight-line rate, thus, it is 2×18.4%
= 36.8%
Depreciation expense through declining balance = (Net book value - Residual value) × Depreciation Rate
Thus, for first year it is = ($50000-$4000) ×36.8%
=$46000 × 36.8 %
= $16928
For 2nd year, the amount will be on which depreciation is charged =
($50000-$16928)-$4000
=$29072
Thus, depreciation expense for 2nd year = $29072×36.8%
= $10698.496
Depreciation using the declining-balance method is $10698.496.
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k owns a variable annuity with an assumed interest rate of 4%. if the actual performance of the separate account(s) is 3%, the effect on this month's income benefit check will be such
The effect on this month's income benefit check will be Same. A lower monthly annuity payment will be made if the actual return is less than the assumed interest rate (AIR). The monthly annuity payment will not change from the prior month if the actual return is equal to the AIR.
What is assumed annual rate ?The interest rate that an insurance company chooses is known as the assumed interest rate (AIR). The assumed interest rate is used to calculate the value of an annuity contract and, consequently, the annuitant's periodic income payment.
The AIR determines the monthly payment the annuitant will get and is combined with other criteria such the annuitant's age at annuitization, spousal coverage options, and the type of annuity coverage selected. The AIR is used by insurance companies to determine an annuity's value.
Knowing the AIR can assist annuitants plan financially for their retirement years because it informs them of the amount they can anticipate receiving from an annuity, which is how many investors utilise annuities to produce retirement income. The value of an annuity can be calculated to help investors plan future investments in different types of vehicles.
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which of the following statements is false regarding credit risk analysis? a comprehensive credit risk analysis involves evaluating and summarizing the various individual risks associated with a loan. credit risk is not affected by the aggressive application of accounting standards since cash flows are not impacted by financial reporting choices. a simple alternative to credit risk analysis is to rely on credit reports issued by third parties. certain financial statement ratios are very useful in predicting loan default.
Certain financial statement ratios are very useful in predicting loan default is false regarding credit risk analysis.
So, the correct option is D.
Before extending trade credit, you should perform a credit risk analysis to determine the likelihood that a customer will miss a payment. Understanding a customer's history of on-time payments and the ability to do so in the future can help you assess their creditworthiness. Traditional credit analyses follow a precise process that includes three crucial steps: gathering information; carefully examining this information, and making decisions.
Credit analysis assesses the riskiness of debt instruments issued by businesses or other organizations to determine the capacity of the company to fulfill its commitments. With regard to investing in that specific firm, the credit analysis aims to determine the right amount of default risk.
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craigmont company's direct materials costs are $4,700,000, its direct labor costs total $8,530,000, and its factory overhead costs total $6,530,000. its conversion costs total:
Conversion costs total is$ 6,70,0000. conversion costs total is substract Prime cost and overhead costs total is equal.The primary costs associated with running a plant are labor and raw material costs. Because these are the essential components of production, they are referred to be prime.
How to find conversion costs total ?The primary costs associated with running a plant are labor and raw material costs.
Prime cost = material cost + labour cost is equal to
$4,700,000 +$8,530,000 = 13,230,000
conversion costs total is substract Prime cost and overhead costs total is equal.
conversion costs total is Prime cost - overhead costs total is equal
13,230,000 - 6,530,000 = $ 6,70,0000.
Simply summing up all direct labor costs and manufacturing overhead costs yields conversion costs. The labor costs that can be directly linked to a product are known as direct labor costs.
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the tinsley company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. tinsley carried the land at its original cost of $62,500. according to an independent appraisal, the land currently is worth $150,000. tinsley paid $23,000 in cash to complete the transaction. required: what is the fair value of the new parcel of land received by tinsley assuming the exchange has commercial substance? prepare the journal entry to record the exchange assuming the exchange has commercial substance. prepare the journal entry to record the exchange assuming the exchange lacks commercial substance. prepare the journal entry to record the exchange except that tinsley received $30,000 in the exchange, and the exchange lacks commercial substance.
1. Fair Value of the new land= Fair Value of old land + Cash given
= $150,000 + $23,000
= $173,000
2. Journal Entry for the Transaction-
Dr Land - new $173,000
($150,000 + $23,000)
Cr Cash $23,000
Cr Land - old (book value) $62,000
Cr Gain $88,000
($150,000 - $62,000)
3. Dr Land - new $44,000
($62,500 + $23,000)
Cr Cash $23,000
Land - old (book value)$62,500
what is a Journal Entry?
Journal entry is a process which is done in order to document a business transaction in the accounting records of the company. A journal entry is often made in the general ledger, but it can also be made in a subsidiary ledger and subsequently rolled forward into the general ledger after being summarized. After then, the general ledger is utilized to produce the company's financial statements.
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