Answer:
2019 Tax Impact of Chained Consumer Price Index for All Urban Consumers
The impact is very minimal with just a reduction of $150 from 2018's $24,550. However, the chained Consumer Price Index (chained CPI) is more progressive than the fixed weighted CPI, as it does not use a fixed bracket of goods.
Explanation:
The chained Consumer Price Index indexes consumer spending, taxes, and Social Security benefits to the rate of inflation. Considered an alternative measurement to the Consumer Price Index (CPI), the Chain-weighted CPI factors in the product substitutions by consumers and other changes in their spending habits, which are unlike the fixed-weighted bracket of goods used by the ordinary CPI.
Answer and Explanation:
The computation of the future value is shown below;
a. For the year 4
Future value is
= ($575 × 1.11^3) + ($825 × 1.11^2) + ($1,125 × 1.11) + ($1325)
= $4,275.89
b. At 16%
Future value is
= ($575 × 1.16^3) + ($825 × 1.16^2) + ($1,125 x 1.16) + ($1,325)
=$4,637.64
c. At 29%
Future value is
= ($575 × 1.29^3) + ($825 × 1.29^2) + ($1125 × 1.29) + ($1,325)
= $5,383.48
The future values of the cash flows in year 4 for Paradise, Inc. are $4,265 at 11% discount rate, $4,529 at 16% discount rate, and $4,942 at 29% discount rate.
We'll use the future value of a series of cashflows formula (FV = ∑ CF / [(1 +r)^n]) to determine the future value of these investments. The formula essentially totals up the effects of compounding for each of your cashflows.
(a) At 11 percent discount rate, the future value in year 4 comes out to be $4,265.
(b) When the discount rate is 16 percent, the future value in year 4 is $4,529.
(c) At a higher 29 percent discount rate, the future value in year 4 is $4,942.
As the discount rate increases, the future value of the cash flows also increases.
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Answer:
The sales budget
Jefferson Sports Medicine, Inc budgets sales budget (Amounts in $)
Months
Physical examination July August September Total
Basic physical 13,200 14,100 6,300 33,600
Extended physical 25,650 27,000 14,850 67,500
101,100
Explanation:
The sales expense shows the forecasted of sales from the various types of physical examination for a given period. These include the sales expected from Physical examination. The sales are the products of the charge per examination and the number of examinations conducted. It may be computed as follows;
July;
Physical examination
= $60 * 220
= $13,200
Extended physical
= $135 * 190
= $25,650
August
= $60 * 235
= $14,100
Extended physical
= $135 * 200
= $27,000
September
= $60 * 105
= $6,300
Extended physical
= $135 * 110
= $14,850
b. Depreciation Expense
c. Retained Earnings
d. Income Tax Expense.
Answer: c. Retained Earnings
Explanation:
The post-closing trial balance reflects balance sheet items that do not have a $0 balance in them when a period has ended and is prepared after the temporary accounts have been closed off. The purpose is to make sure that the debits equal the credits.
As there are no temporary accounts, all income statement items will have been closed off and moved to the Retained earnings account which will reflect the total for the income statement for the year. The only account that will be listed in the post-closing trial balance therefore will be the Retained earnings account.
Answer: Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
Explanation:
The Responsibility Income Statement is one where the different centers in a business have their own sub income statement so that the activities of each center and their profitability is measured and monitored.
In this statement, costs are classified as Variable and Fixed so it is important that it is known whether the costs are variable or fixed.
As the statements are per center, the costs in them would have to be only those that are directly traceable to that center so that a truer reflection of the statements can be seen.
The main concepts involved in preparing a responsibility income statement encompass the traceability of costs to the responsibility center and the form of organization of the responsibility center, either as a profit center or an investment center.
In preparing a responsibility income statement that shows both the contribution margin and the responsibility margin, two primary concepts involve the allocation of costs to varying centers. Firstly, one needs to ascertain whether these costs are directly traceable to the responsibility center, meaning it must be identifiable and characterized to a specific center. Secondly, it's imperative to determine whether the responsibility center is structured as a profit center or an investment center. A profit center bears responsibility for both costs and revenue, while an investment center is accoutable for costs, revenue and assets.
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Answer:
1.8pesos
2.Price of Spam in Ecteria as well as in Wiknam will increase
Explanation:
8 Pesos per dollar=16/2=8pesos
Ans for 2)
Price of Spam in Ecteria as well as in Wiknam will increase
Question:
Early in 2020, Cullumber Equipment Company sold 500 Rollomatics at $6,300 each. During 2020, Cullumber spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.
a. Prepare 2020 entries for Cullumber.
Assume that Cullumber estimates the total cost of servicing the warranties in the second year will be $34,000.
b. Prepare 2017 entries for Coronado assuming that the warranties are not an integral part of the sale (a service-type warranty).
Assume that of the sales total, $51,000 relates to sales of warranty contracts.
Coronado estimates the total cost of servicing the warranties will be $50,000 for 2 years.
Estimate revenues to be recognized on a straight-line basis.
Answer:
a.
Cash -------------------------------------_-_---------$3,150,000
Sales (to record sales of rollomatics) ----------------------------- $3,150,000
Warranty Expenses ------------------------ $20,000
Cash (Warranty Cost Incurred)------ -_-------------------_-----------. $20,000
Warranty Expenses -----_----- $14,000
Estimated Liabilities under Warranty (to accrue estimated warranty cost) -------- $14,000
b.
Cash ---- -----------_------------------------------- $3,150,000
Sales --------------------_------------------------------------------$3,099,000
Unearned Warranty Revenue ----------------------------- $51,000
(To record the sale of Rollomatics
Warranty Expenses ------------------------ $20,000
Cash (Warranty Cost Incurred)------ -_-------------------_-----------. $20,000
Unearned Warranty Revenue ------------------------ $25,000
Warranty Revenue (To recognise revenue earned)------ -_-------------------_-----------. $25,000