On January 1, 2021, Tabitha Designs purchased a patent for $402,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $158,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $52,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be: Multiple Choice $104,000. $98,800. $63,500. $40,050.

Answers

Answer 1

Answer:

$63,500

Explanation:

Patent

Amortization Charge - Patent = Cost / Useful life

                                                 = $402,000/8

                                                 = $50,250

Same amount is charged over the useful life, hence 2024 Amortization Charge - Patent will be $50,250

Equipment

Depreciation Expense = (Cost - Salvage Value) / Useful Life

                                     = ($158,000-$52,000) / 8

                                     = $ 13,250

Same amount is charged over the useful life, hence 2024 Depreciation Expense - Equipment will be $ 13,250

Total Expense

Amortization Charge - Patent           $50,250

Depreciation Expense - Equipment $ 13,250

Total                                                    $63,500


Related Questions

The NASDAQ is a floor-based exchange.


t or f

Answers

False. NASDAQ has no physical trading floor because all of the stocks are pretty much made electronically.

What is consumer demand ?

Answers

Answer:consumer demand. noun [ U or C ] ECONOMICS. demand for goods and services that comes from individual people rather than from companies: consumer demand for sth rises/falls Consumer demand for mobile video continues to rise.

Explanation:

ethical concerns about sharing health data online. This would include the EHR, the patient portal, etc. How are these protected? Do you think current methods are good enough and are working? What about with Web 3.0 - where our online info could lead to customization of our searches? How ethical is all of this?

Answers

There needs to be an increase in encrypted protection of sensitive data to maintain ethics on the EHR, patient portal, etc.

Is Web 3.0 based on ethics?

Technology has revolutionized people's lives in a social and professional way, with the internet being part of work, shopping and personal relationships between individuals. Web 3.0 is configured as an innovative means where the internet can be accessed from any device and where it is possible to exchange data between both, improving the speed with which information is shared.

In order to decide whether this is an ethical tool, it is necessary, in relation to the protection of online information, that it is focused on data security, with information available only when clearly permitted by the user, so that it can be used for commercial purposes and personalization of internet usage for example.

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In marketing his wooden pens and pencils to specialty-shop customers. What marketing straregy Roben was using and why?

Answers

Answer:

concentrated marketing

6. What should you consider before purchasing an item or service?
A. The price of upkeep, repairs, or replacements.
B. What others have said about the quality of an item.
C. The possibility and severity of a negative outcome should the item not work.
D. How much you like the commercials for the product or service.
E. All of the above
F.A,B,C

Answers

Answer: F

Explanation: Because all of them except D is valid

PLEASE HELP WILL MARK BRAINLIST

PLEASE HELP WILL MARK BRAINLIST

Answers

A they earn a higher salary

The knowledge and skills of people increase.

What is your diagnosis of the situation at FAVI?

Answers

Answer:

Explanation:

FAvI is a small automotive parts manufacturer in Hallencourt, France. In addition to other products, it is the European leader in the production of key components for gearboxes (manual transmissions) in such cars as Renault, Peugeot, Citroen, Fiat, Opel, Audi, volvo, and volkswagen. Employing about 400 people, this société anonyme

what are downstream value chains​

Answers

Downstream value chains refer to the stages of production and distribution that occur after the manufacturing or production of a product. It involves the processes, activities, and entities that are responsible for delivering the final product to the end consumer.

Downstream value chains typically include activities such as marketing, sales, distribution, retailing, and customer service. These stages focus on adding value to the product, ensuring its availability to the target market, and meeting customer demands. It involves activities like packaging, branding, logistics, pricing, and after-sales support.

Efficient management of the downstream value chain is crucial for achieving customer satisfaction, market reach, and profitability. It involves coordinating with intermediaries, managing distribution channels, and implementing effective marketing strategies to promote and deliver the product to consumers.

By optimizing the downstream value chain, organizations can enhance their competitiveness, expand market share, and capture customer loyalty in the final stages of the product's journey from producer to consumer.

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discuss five engagement-specific controls to be instituted by an audit firm to ensure quality control

Answers

The five key engagement-specific controls that an audit firm can implement to guarantee quality control throughout an engagement include adequate planning, risk assessment, supervision, documentation, and review.

These measures are taken to ensure the review is completed as per evaluating guidelines and that the ends came to are enough upheld by the accessible information. A survey likewise assists with guaranteeing that the review was completed as per inspecting norms.

Planning aids in characterizing the review's extension, laying out client assumptions, and successfully distributing assets and time. The foundation of fitting strategies to address potential dangers connected with the client's fiscal summaries is supported by risk appraisal.

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Type the correct answer in the box. Spell all words correctly.
Nathan calculated his company's economic order quantity and categorized all production costs. One cost was related to the cost of storing milk
In the freezers, and another cost was related to the insurance expenses that covered the company's Inventory. To which cost category would
Nathan assign these costs?
Nathan would assign these costs to the
section of the economic order quantity.
HELP ASAP?!?

Answers

Based on the kind of costs they are, Nathan would assign them to the following sections of economic order quantity:

Cost of storing milk - Annual holding cost per unit.Insurance expenses - Fixed cost per order.

What sections will the above costs fall under?

The cost of storing milk would go to the Annual holding cost because this is where storage costs are catered for. Economic Order Quantity aims to minimize storage costs so these must be accounted for.

Insurance expenses are fixed costs which means that they will go to the fixed cost the company incurs for every order they make.

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Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
(Dollars)
Quantity (Dollars)
0
1
2
3
4
5
6
7
5
6
8
11
15
20
26
35
05
06
07
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
6
12
18
24
30
36
42
AAAAAAA
Profit
(Dollars)
In order to maximize profit, how many units should the firm produce? Check all that apply.
04

Answers

The solution to the given question when we consider total cost and total revenue, given in the following table:

The Financial Table

Quantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue | Profit

------- | -------- | -------- | -------- | -------- | --------

0     | 5       | 5        | 0        | 0        | -5

1     | 11      | 6        | 6        | 6        | 1

2     | 17      | 6        | 12       | 6        | 5

3     | 24      | 7        | 18       | 6        | 4

4     | 31      | 8        | 24       | 6        | -7

5     | 39      | 8        | 30       | 6        | -9

6     | 47      | 8        | 36       | 6        | -11

7     | 55      | 8        | 42       | 6        | -13

As you can see, the firm's profit is maximized at quantity 3. This is because the marginal revenue is equal to zero at this point, which means that the firm is not making any additional profit by producing more units. In fact, if the firm produces more units, it will actually start to lose money.

Therefore, the answer to the question is 3.

In summary:

The firm's profit is maximized at quantity 3.This is because the marginal revenue is equal to zero at this point.If the firm produces more units, it will start to lose money.Therefore, the answer to the question is 3.

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- What are two examples of Employer Contributions?
a. Health insurance and 401(k)
b. 401(k) and Roth IRA
c. Federal and state taxes
d. Traditional and Roth IRA

Answers

a. Health insurance and 401(k) are two examples of Employer Contributions.

Employer contributions are benefits that employers provide to their employees as part of their compensation package. Two examples of employer contributions are health insurance and 401(k) retirement plans.Health insurance is a valuable benefit that can help employees pay for medical expenses such as doctor visits, hospital stays, and prescription drugs. Employers may offer different types of health insurance plans and may pay a portion or all of the premium for their employees.401(k) plans are a type of retirement savings plan that allows employees to contribute a portion of their salary before taxes. Employers can also make contributions to their employees' 401(k) plans, either through matching contributions or profit-sharing contributions.Overall, employer contributions can help employees save money on essential expenses and plan for their financial futures.

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You are trying to decide how much to save for retirement. Assume you plan to save $5000 per year with the first investment made one year from now. You think you can earn 10% per year on your investments and you plan to retire in 43 years, immediately after making you last $5000 investment.

Required:
a. How much will you have in your retirement account on the day you retire?
b. If, instead of investing $3,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how mach would tat mp sum need to be?
c. If you hope to live for 20 years in retirement, how moch can you wihdraw every year in retirement (starting one year after retirement) so that you wil just exhaustyour savings with the 20th withdrawal (assume your savings will continue to earn 10% in retirement)?
d. If, instcad, you decide to withdraw $300,000 per year in retirement (again w the first withdrawal one year after retiring), how many years will isake until you exhaust your savings?

Answers

Answer:

a. How much will you have in your retirement account on the day you retire?

we need to find the future value of the annuity payments, we can use an annuity table to calculate this amount:

$5,000 x 592.4007 (FV of annuity, 10%, 43 years) = $2,962,003.50

   

b. If, instead of investing $3,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how mach would tat mp sum need to be?

we need to determine the present value of the future amount:

present value = future value / (1 + r)⁴³ = $2,962,003.50 / 1.1⁴³ = $49,170

c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10% in retirement)?

The maximum amount that you can withdraw per year starting one year after retirement would be $347,915.82 . This was calculated assuming that the investment account will continue to earn 10% annually.

d. If, instead, you decide to withdraw $300,000 per year in retirement (again w the first withdrawal one year after retiring), how many years will it take until you exhaust your savings?

if you retire "only" $300,000 per year, your savings should last at least 45 years.

Answer:

Explanation:

a. $5,000 x 592.4007 (FV of annuity, 10%, 43 years) = $2,962,003.50

b. present value = future value / (1 + r)⁴³ = $2,962,003.50 / 1.1⁴³ = $49,170

c. $347,915.82 .  

d. The retirement is $300,000 per year, and last at least 45 years for saving

Kevin paid $2,550 in qualifying expenses for his daughter, Jasmine, who attended a community college. What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?

Answers

Without regard to AGI limitations or other credits, Kevin's lifetime learning credit can be found to be $510

How to find the lifetime learning credit?

To find the lifetime learning credit when there is no regard to AGI limitations or other credits, Tax laws are such that one gets the 20% of the first $10, 000 expense that qualify to be spent on community college.

The means that Kevin's lifetime learning credit for paying expenses for Jasmine are:

= Qualified expenses x Percentage of the first qualifying expenses
= 2, 550 x 20%
= $510

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The Washington Post Company's ownership structure. They have two classes of stock, one of which has super voting, meaning one class of shareholders has more say than the other class. Do you think this is a smart structure? What are the advantages and disadvantages of this structure?​

Answers

I think two classes of stock is a smart structure.

Advantages of the two classes of stock

It protects the firm against a hostile takeoverIt gives management greater ability to make decisions.

Disadvantages of the two classes of stock

Ordinary shareholders have a limited ability to effect changes in the firm.

A dual share class structure is when there are two classes of stock: the owners and management have greater voting rights while the shareholders have a limited voting right. This structure prevents the firm against a hostile takeover.

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How does Maslow hierarchy of need help marketers to create various marketing strategies. Explain your answer with examples.

Answers

The Maslow hierarchy of need helps marketers to create various marketing strategies because its already provides a way of evaluating the customers' motivations beyond what raw data will give.

What is the Maslow hierarchy of need?

The psychological theory established the motivation theory that models the 5 categories of human needs that helps to dictate an individual's behaviour.

The needs of human according to the Maslow Hierarchy includes Self-actualization, Esteem need, love and belonging need, safety need and physiological needs.

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You purchased stock for $18,000 ten years ago. Now the stock is worth $25,000. What was your annual rate of return?

Answers

Answer:

3.3%

Explanation:

The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year.

DATA

Future value = $25,000

Present value = $18,000

Time = 10 years

Formula:

Annual return = \((\frac{futurevalue}{presentvalue}) ^{1/time} -1\)

Annual return = \((\frac{25000}{18000}) ^{1/10} -1\)

Annal return = 3.3%

Zang Company had no office supplies on hand at the beginning of the year. During the year, the company purchased $250 worth of office supplies. At the end of the year, $50 worth of office supplies were on hand. How much should Zang Company report as office supplies expense for the year

Answers

Answer:

Hdhdi

Explanation:

Which situation is an example of indirect taxation?
OA. Stores charge sales tax on each purchase and give that money to
the government.
OB. Homeowners must pay a percentage of their home's worth to the
government.
OC. Businesses must send a portion of their income each year to the
government.
OD. Every citizen sends the government money to support the armed
forces.
SUBMIT

Answers

Option A is the correct answer. Indirect taxation is the situation where taxes are imposed on products or services and not directly on individuals. Therefore, the example of indirect taxation in the situation given is when stores charge sales tax on each purchase and give that money to the government.

Stores charge sales tax on each purchase and give that money to the government is an example of indirect taxation.Indirect taxation is a method of taxation in which individuals are not taxed directly, but instead, the tax is paid through an intermediary.

The tax is generally imposed on products or services. This tax, which is passed on to the customer as part of the price of the good or service, is then collected by the seller and forwarded to the government.

Sales tax, excise tax, and customs duty are all examples of indirect taxes.

Therefore, Option A is the correct answer.

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An effective contract writing will describe all _________________ to be conveyed or excluded in the sale in detail.

Answers

An effective contract writing will describe all terms and conditions to be conveyed or excluded in the sale in detail.

An effective contract writing will describe all the essential elements and provisions to be conveyed or excluded in the sale in detail. These elements encompass a wide range of aspects that need to be clearly defined to ensure the rights, obligations, and expectations of both parties are accurately outlined.

Firstly, the contract should outline the identification of the parties involved, including their legal names, addresses, and any other pertinent details that establish their identities. This ensures clarity and avoids any confusion regarding the individuals or entities responsible for fulfilling the contract's terms.

Next, the contract should explicitly define the subject matter of the sale. This includes a comprehensive description of the goods, services, or property being transferred, along with any specifications, quantities, quality standards, or other relevant details. Clearly stating what is included and what is excluded in the sale helps prevent misunderstandings and potential disputes in the future.

Furthermore, the contract should outline the purchase price or compensation, including any payment terms, installment schedules, or contingencies. It should specify the currency in which the payment will be made and any applicable taxes, fees, or additional costs that may be incurred during the transaction.

Additionally, the contract should cover the timeframe and conditions of the sale, including delivery or transfer dates, inspection and acceptance procedures, and any warranties or guarantees provided by either party. It should also address any contingencies or conditions that must be met before the sale can be completed.

Moreover, an effective contract writing should incorporate provisions related to the allocation of risks and liabilities. This includes clarifying who bears responsibility for loss or damage during transit or after delivery, as well as any limitations of liability or indemnification clauses that protect the parties involved.

Lastly, the contract should address dispute resolution mechanisms, such as arbitration or mediation, to provide a framework for resolving conflicts should they arise. It should also include provisions related to the termination or cancellation of the contract and any associated penalties or remedies.

In conclusion, an effective contract writing comprehensively describes all the terms and conditions to be conveyed or excluded in the sale. By addressing the aforementioned aspects in detail, the contract minimizes ambiguity, establishes clear expectations, and protects the interests of both parties involved in the transaction.

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Which statement is TRUE about the DTPA laundry list?
A) It is all inclusive.
B) Even if an act is not on the list, a judge can decide that it’s a violation.
C) All the acts on the list pertain to retail sales.
D) Real estate commission violations take priority over the DTPA laundry list violations.

Answers

The statement which is true about the DTPA laundry list is: B) Even if an act is not on the list, a judge can decide that it’s a violation.

What is the DTPA?

DTPA is an acronym for Deceptive Trade Practices Consumer Protection Act and it can be defined as a law that is enforced by the Office of the Attorney General to protect consumers in Texas.

The main purpose of DTPA.

It is a Texan law that was enacted to protect consumers against the following:

False, misleading, or deceptive business practices.Unconscionable actions.Breaches of warranty.

What is DTPA laundry list?

DTPA laundry list comprises the actions that are considered to be a violation of Section 17.46 of the Deceptive Trade Practices Consumer Protection Act (DTPA) law.

According to the DTPA laundry list, a judge is legally empowered by the Texas constitution to decide that an action is a violation of consumer rights, even if the act is not stated on the list.

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Businesses collect
information on where people live, what they buy, and how they spend their time.

Answers

Businesses collect demographic information on where people live, what they buy, and how they spend their time. Businesses collect demographic information on where people live, what they buy, and how they spend their time.

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that

A. differences in tax rates across countries complicate the determination of the appro-priate transfer price
B. a decreasing number of transfers are between divisions located in different countries
C. companies must pay income tax in the country where income is generated
D. many companies prefer to report more income in countries with low tax rates.

Answers

I think it’s A .................

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that the companies must pay income tax in the country where income is generated. Thus option (C) is correct.

What is tax?

Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional, or national.

Tax revenues finance government activities, including public works and services such as roads and schools, or programs such as Social Security and Medicare.

In economics, taxes fall on whoever pays the burden of the tax, whether this is the entity being taxed, such as a business, or the end consumers of the business’s goods.

From an accounting perspective, there are various taxes to consider, including payroll taxes, federal and state income taxes, and sales taxes.

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introduction to ideas of security in business​

Answers

Answer:

Business security refers to the measures and procedures put in place to protect a company's assets, employees, and clients from various threats, both internal and external.

Here are some ideas of security in business:

1. Physical security: Physical security involves measures put in place to protect the physical assets of a business such as buildings, equipment, and inventory. Physical security measures may include the use of surveillance cameras, alarms, security personnel, and access controls.

2. Information security: Information security refers to the protection of sensitive information such as customer data, financial information, and trade secrets. Information security measures may include the use of firewalls, anti-virus software, encryption, and password protection.

3. Cybersecurity: Cybersecurity involves protecting a business's digital assets such as networks, computers, and software from cyber-attacks and unauthorized access. Cybersecurity measures may include the use of firewalls, anti-virus software, data encryption, and regular software updates.

4. Personnel security: Personnel security involves screening employees, vendors, and contractors to ensure that they do not pose a risk to the company's assets, clients, or reputation. Personnel security measures may include background checks, drug testing, and security clearances.

5. Emergency preparedness: Emergency preparedness involves preparing for and responding to emergencies such as natural disasters, accidents, and security breaches. Emergency preparedness measures may include emergency drills, evacuation plans, and crisis management teams.

Overall, implementing these security ideas can help a business to minimize risks and protect its assets, employees, and clients.

Explanation:

Answer:

Security is an important aspect of any business, as it helps to protect the company's assets, employees, and customers from harm. In the world of business, security refers to the measures taken to prevent theft, fraud, vandalism, and other types of criminal activity.

Security is an important aspect of any business, as it helps to protect the company's assets, employees, and customers from harm. In the world of business, security refers to the measures taken to prevent theft, fraud, vandalism, and other types of criminal activity.The idea of security in business involves creating a safe and secure environment for all stakeholders by implementing security measures such as access control, surveillance, and physical security. Business owners need to consider the potential risks and threats to their business and take measures to mitigate them.

Security is an important aspect of any business, as it helps to protect the company's assets, employees, and customers from harm. In the world of business, security refers to the measures taken to prevent theft, fraud, vandalism, and other types of criminal activity.The idea of security in business involves creating a safe and secure environment for all stakeholders by implementing security measures such as access control, surveillance, and physical security. Business owners need to consider the potential risks and threats to their business and take measures to mitigate them.In addition to physical security, cybersecurity is also a critical aspect of business security. With the increasing use of technology in business operations, companies are vulnerable to cyber attacks that can compromise their data and sensitive information. Therefore, businesses need to have robust cybersecurity measures in place to protect against cyber threats.

Security is an important aspect of any business, as it helps to protect the company's assets, employees, and customers from harm. In the world of business, security refers to the measures taken to prevent theft, fraud, vandalism, and other types of criminal activity.The idea of security in business involves creating a safe and secure environment for all stakeholders by implementing security measures such as access control, surveillance, and physical security. Business owners need to consider the potential risks and threats to their business and take measures to mitigate them.In addition to physical security, cybersecurity is also a critical aspect of business security. With the increasing use of technology in business operations, companies are vulnerable to cyber attacks that can compromise their data and sensitive information. Therefore, businesses need to have robust cybersecurity measures in place to protect against cyber threats.Overall, the idea of security in business is to create a safe and secure environment for all stakeholders, protect the company's assets and information, and ensure business continuity. By implementing appropriate security measures,

Explanation:

Hope it Helps

do you really think reseller partners will help out to uplift the factors of macro environment?

Answers

Answer:

yes

Explanation:

Read the following scenario and choose the correct graphs they represent.

The government passes a new tax on fast food that takes effect immediately.

Please answer it correctly and asap.

Read the following scenario and choose the correct graphs they represent.The government passes a new

Answers

Answer:

Explanation: the answer is the answer for the thing

Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate?
a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.
b. The stock of Kaskin, Inc., has more total risk than Quinn, Inc.
c. The stock of Quinn, Inc., has more systematic risk than that of Kaskin, Inc.

Answers

Answer: a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.

Explanation:

The beta of a stock measures its systematic risk which is its risk in relation to the market. With a higher systematic risk, there would be a higher expected return to compensate for this risk.

The beta is used to calculate the expected return in the CAPM formula:

Expected return = Risk free rate + Beta * Market premium

Note how the higher the beta, the higher the expected return based on the above formula.

what will you use for banca/boat to move​

Answers

Answer:

a paddle

Explanation:

Using a "paddle" is very important in order to move/propel a boat. Paddling creates a force which goes against the water. This force is faced by an opposite force that is equal and that which allows the boat to move forward.

So as you push the water asides, the boat accelerates. Such technique is deemed efficient when using the boat. Not following the proper technique will not move the boat.

Jillet Corporation began the year with inventory of 10,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 50,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, n/30. The company uses the gross method to record purchase discounts. The inventory was purchased f.o.b. shipping point and additional freight costs of $0.50 per unit were charged to Jillet. 1,000 units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $0.50 per unit on the original purchase. The units were defective and were returned two days after they were received. The remaining inventory was paid within the discount period. (Hint: The discount applies only to inventory and not the freight.) Sales for the year totaled 45,000 units at $18 per unit. (Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.) On December 28, Jillet purchased 5,000 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Jillet’s warehouse on January 4 of the following year. 14,000 units were on hand at the end of the year. Required: Determine ending inventory and cost of goods sold at the end of the year. Assuming that operating expenses other than those indicated in the above transactions amounted to $150,000, determine income before income taxes for the year. For financial reporting purposes, the company uses LIFO (amounts based on a periodic inventory system). Record the year-end adjusting entry for the LIFO reserve, assuming the balance in the LIFO reserve at the beginning of the year is $15,000. Determine the amount the company would report as income before taxes for the year under LIFO. Operating expenses other than those indicated in the above transactions amounted to $150,000.

Answers

1A) The cost of goods sold under FIFO perpetual inventory is $440,150.

1B) The Ending Inventory under FIFO perpetual inventory is $144,550.

1C) The income before taxes under FIFO perpetual inventory is $219,850.

2A) The cost of goods sold under LIFO periodic inventory is $463,500.

2B) The Ending Inventory under LIFO periodic inventory is $124,920.

2C) The income before taxes under LIFO periodic inventory is $196,500.

2D) Adjusting journal entry for LIFO reserve:

Debit Cost of goods sold (FIFO) $8,350

Credit LIFO reserve $8,350

What is the difference between FIFO and LIFO methods?

The FIFO is the first-in, first-out costing method that assumes that goods bought first are the first to be sold.

LIFO is the last-in, first-out costing method that assumes that the last goods bought are the first to be sold.

What is the difference between a periodic and perpetual inventory system?

A periodic inventory system accounts for inventory at the end of the period.

A perpetual inventory system accounts for inventory at the inventory transaction date and not at the end of the accounting period.

Data and Calculations:

Beginning inventory units = 10,000 units

Cost per unit = $8

Total beginning inventory value = $80,000 ($8 x 10,000)

Inventory system: Perpetual with FIFO cost method

Transaction Analysis:

FIFO method/Perpetual Inventory System:

Inventory $500,000 (50,000 units at $10) Accounts Payable $500,000

Terms 2/10, n/30.

Freight-in Expense $25,000 (50,000 x $0.50) Accounts Payable $25,000

Accounts Payable $10,000 Inventory $10,000

Accounts Payable $500 Freight-in Expense $500

Accounts Payable $514,500 Cash Discounts $9,800 Cash $504,700

Cost of goods sold $440,150 ($80,000 + $367,500 - $7,350) Cash Discount $7,350 Inventory $430,000 Freight-in Expense $17,500

Cash $810,000 Sales Revenue $810,000

Ending inventory cost = $144,550 {($10 x 14,000) + ($0.50 x 14,000) - $2,450}

Net income:

Sales revenue $810,000

Cost of goods sold $440,150

Operating cost = $150,000

Income before taxes = $219,850

LIFO Method/Periodic Inventory:

Cost of goods sold $463,500 ($10 x 45,000 + ($0.50 x 45,000) - $9,000) Cash Discount $7,350 Inventory $450,000 Freight-in Expense $22,500

Cash $810,000 Sales Revenue $810,000

Ending inventory cost = $124,920 {($10 x 4,000) + ($8 x 10,000) + ($0.50 x 10,000) - $800}

Net income:

Sales revenue $810,000

Cost of goods sold $463,500

Operating cost = $150,000

Income before taxes = $196,500

LIFO reserve increase = $8,350 ($23,350 - $15,000)

New LIFO reserve = $23,350 ($463,500 - $440,150)

Thus, the LIFO reserve is the difference between the cost of goods sold under FIFO and LIFO costing methods.

Learn more about LIFO reserves at https://brainly.com/question/13779572

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Which questions about risk should someone ask before making a big purchase? Check all that apply.
What problems are most likely to happern?
OWhat can be done to avoid liability
OWhat could go wrong?
OWhat problems could be most damaging?
OWhat option has no risk?

Answers

Answer:

A

Explanation:

If you need buy it, if it's a want not a need don't buy it

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