Answer:
$32540
Explanation:
The balance in additional paid in capital treasury stock as a result of the transactions is $32540.
The beginning balance was set at 0.
March 6 Acquisition in the treasury stock = 27965 shares × $12
In additional paid capital it is 0.
April 6 Reissued in treasury stock = 5280 shares × $12 while in additional paid capital = 5280 shares × $7 (19-12).
Please kindly see attachment to see the step by step working and the answer.
Answer:
Amount paid for the treasury stock on March 6 = $12*27,965 = $335,580
Total Amount realized on the resale of Treasury stock
April 18 = 5280*$19 = $100,320
June 11 = 2210*$10 = $ 22,100
$122,420
cost of treasury stock sold
( $12 * 7,490) (89,880)
Balance in additional paid in capital from treasury stock $32,540
Explanation:
b. What is an example of a Veblen good?
c. Why do some consumers purchase Veblen goods?
Answer:
Find the answers below
Explanation:
A. Veblen goods are luxury goods sought after by wealthy people and for which these category of people increase their demand as the prices of the good increase (in contrast to the popular law of demand).
2. Examples are luxury houses or cars, jewelry etc.
3. Some customers buy these type of goods in order to show how wealthy they are or show their status.
A Veblen good is a luxury good that defies the law of demand by having an upward-sloping demand curve. An example is a luxury brand handbag. Some consumers purchase Veblen goods as a status symbol and for the exclusivity they confer.
a. A Veblen good is a type of luxury good that has an upward-sloping demand curve, meaning that as the price of the good increases, the quantity demanded also increases. This is contrary to the law of demand, which states that as the price of a good increases, the quantity demanded decreases.
b. An example of a Veblen good is a luxury brand handbag. As the price of the handbag increases, the demand for it also increases, as some consumers perceive the higher price as a status symbol and are willing to pay more for it.
c. Some consumers purchase Veblen goods because they derive satisfaction from owning and displaying luxury items as a symbol of their status and wealth. The higher price of Veblen goods can make them more desirable to certain consumers, as it signifies exclusivity and scarcity.
#SPJ12
Last week, 1,550 hours were worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.
1. Hanson’s rate variance (VMRV) for variable manufacturing overhead for the week was:_______.
a. $465 unfavorable.
b. $400 favorable.
c. $335 unfavorable.
d. $300 favorable
2. Hanson’s efficiency variance (VMEV) for variable manufacturing overhead for the week was:______.
a. $435 unfavorable.
b. $435 favorable.
c. $150 unfavorable.
d. $150 favorable.
Answer:
Variable manufacturing overhead rate variance= $465 unfavorable
Variable overhead efficiency variance= $150 unfavorable
Explanation:
Giving the following information:
Standard:
1.5 standard hours per Zippy at $3.00 per direct labor hour
Actual:
1,550 hours to make
1,000 Zippies
$5,115 was spent
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 5,115/1,550= $3.3
Variable manufacturing overhead rate variance= (3 - 3.3)*1,550
Variable manufacturing overhead rate variance= $465 unfavorable
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3
Variable overhead efficiency variance= $150 unfavorable
Answer:
recognize a liability and an expense in its financial statements.
Explanation:
Contingent liability refers to a liability that arises in some unpredictable future event. In this, the amount is expected or predicted.
Here in the question the actual occurrence would be categorized also its amount would be predicted so the same is to be recorded as a liability and recorded as an expense in the financial statement i.e. balance sheet & income statement
Answer:
Yes
Explanation:
Metalcrafters is right by claiming that the contract was discharged. The text makes a list of the impossibilities that allow for a contract to be discharged. “That the occurrence made performance impossible. The doctrine of impossibility relieves nonperformance only in extreme circumstances” (Twomey & Jennings). Samet’s death in the automobile accident qualifies Metalcrafters for the doctrine of impossibility. He was the only one capable of making the product and died unexpectedly.
The death of a party does not usually discharge a contract, unless it is a 'personal service contract' that relies heavily on the unique skills of that individual. In this case, Metalcrafters may claim the contract was dependent on Samet's unique skills, thereby making it impossible to fulfill the contract upon his demise. However, the specific determination would rely on the contractual terms and its interpretive application in law.
The subject matter of this question is related to contract law, specifically the aspect of 'impossibility of performance' as a potential defense for breach of contract. In the circumstance described, Metalcrafters had a contract with Lamar to design a new product, which was then considered impossible due to the unfortunate death of Samet, a pivotal individual to this task.
Under normal circumstances, death does not discharge a contract. If a party promises to perform a task that can be performed by others, the contract generally remains in effect even if that party becomes unable to perform. However, where the contract is considered a 'personal service contract'—one that relies on the unique abilities or skills of a particular individual—performance of the contract may be impossible if that individual dies.
Whether Metalcrafters could argue that this was a personal service contract may depend on the specific terms of the contract and how much it relied on Samet's unique skills. This is a complex area of contract law and could depend on further aspects that aren't covered in the question. In other words, it's not exactly a straightforward 'yes' or 'no' matter.
#SPJ3
Answer:
Answer for the question :
Joan is a single individual who works for Big Petroleum, Inc. During all of 2019, she is stationed in West Africa. She pays West African taxes of $20,000 on her Big Petroleum salary of $92,000. Her taxable income without considering her salary from Big is $36,000. How should Joan treat the salary she receives from Big Petroleum on her 2019 U.S. tax return?
is explained in attachment.
Explanation:
See attachment for detailed answer.
Joan should count both her local and Big Petroleum incomes but can use the Foreign Earned Income Exclusion for the latter. She can also claim a foreign tax credit for the taxes she paid in West Africa.
In the case of Joan and her 2019 U.S. tax return, she must declare the total income she earned in that year, including her salary from Big Petroleum, Inc., which was earned while she was stationed in West Africa. Still, due to U.S. tax laws, Joan can claim a Foreign Earned Income Exclusion (FEIE).
The FEIE for 2019 allows U.S. citizens or residents who live outside the U.S. to exclude up to $105,900 in foreign earned income. Therefore, Joan, who made $92,000 in West Africa, can exclude this amount from her taxable income because it is less than the FEIE limit.
However, she should remember to include the remaining $36,000 she made outside her Big Petroleum salary in her U.S. taxable income. The West African taxes Joan paid do not directly influence her U.S. taxable income but could potentially be claimed as a foreign tax credit to avoid double taxation.
#SPJ3
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answer:
a. Straight line method.
Depreciation per annum = ($ 256,800 - $12,000 ) / 8 = $ 30,600.
Depreciation for 2020 = $ 30,600 * ( 3 /12 ) = $ 7,650.
b. Units of output
Depreciation per unit = ( $ 256,800 - $ 12,000 ) / 48,000 = $ 5.1
Depreciation for 2020 = 1,000 * $ 5.1 = $ 5,100.
c. Working hours.
Depreciation per hours = ( $ 256,800 - $ 12,000 ) / 20,400 = $ 12
Depreciation for 2020 = 600 * $ 12 = $ 7,200.
D. Sum of digits method
Sum of years = 8 ( 8 +1 ) / 2 = 36.
Year - 1 used ( 3 / 12 = 0.25)
Year-2 used ( 12 / 12 = 1 )
Remaining ( 8 - 1 - 0.25 = 6.75)
Depreciation for 2022 = ($ 256,800 - $ 12,000 ) * ( 6.75 / 36 )
Depreciation for 2022 = $ 45,900.
e. Double declining balance
Depreciation rate = 200 / 8 = 25 %.
Depreciation for 2020 = $256,800 * 25 % * (3 /12)
Depreciation for 2020 = $16,050.
Depreciation for 2021 = ( $256,800 - $ 16,050) * 25%
Depreciation for 2021 = $60,188.