When a company purchases an asset, such as equipment, land, or vehicles, the purchase transaction needs to be recorded in the accounting system. The entry for the purchase of an asset involves debiting the asset account to increase its value and crediting the appropriate liability or cash account to reflect the payment made.
The cost of the asset, including any applicable taxes, delivery charges, or other related expenses are to be adjusted in the price of the asset.
Journal entry for Purchase of Machine X
Date: March 20, 2020
Debit: Machinery (Machine X) - $110,000
Credit: Cash or Accounts Payable - $110,000
Journal entry for Purchase of Machine Y
Date: March 20, 2020
Debit: Machinery (Machine Y) - $155,000
Credit: Cash or Accounts Payable - $155,000
Since the machines were purchased at auction, the cost recorded in the journal entry is based on the auction prices for each machine.
The transportation and installation charges of $5,000 should also be added to the initial costs of the machines. It can be done equally.
Debit: Machinery (Machine X) - $2,500
Credit: Cash or Accounts Payable - $2,500
Debit: Machinery (Machine Y) - $2,500
Credit: Cash or Accounts Payable - $2,500
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1. what you have noticed on the posted materials in
What manner did the advertisers promote their producter?
Answer:
Explanation:
Advertising is the lure that draws new customers to your business or product. Small businesses utilize several options to advertise a product or service. ... that receive heavy traffic is one way to get the word out about your business. ... venue with a stamp that bears your company logo; the attendees will then have your logo ...
a broker received an earnest money deposit to support a valid contract. if the contract is breached and does not close, the broker is required to hold the escrow funds until: select one: a. the buyer requests for the deposit be returned b. all principals to the contract agree to the intended distribution c. the broker receives notice of the breach of contract from an attorney d. the non-defaulting party threatens legal action
If a contract is breached and does not close, the broker is required to hold the escrow funds until all principals to the contract agree to the intended distribution.
When a contract is breached and does not close, the disposition of the earnest money deposit is determined by the agreement of all parties involved. The broker must hold the escrow funds until there is a mutual agreement among all the principals (buyer and seller) regarding how the deposit should be distributed.
It is important to have consensus among all parties to ensure a fair resolution and avoid any potential disputes or legal complications. Once all principals agree on the intended distribution of the escrow funds, the broker can proceed with executing that agreed-upon arrangement.
Therefore, option b) all principals to the contract agree to the intended distribution is the correct choice in this scenario.
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which statement about the outcomes of high-performance work systems is most accurate? sales revenues increase the outcomes of high-performance work systems.
D. The outcomes of each employee contribute to a system's overall high performance is the correct statement.
A high-performance work system is a collection of strategic human resource management (HRM) initiatives that assist businesses in decentralising decision-making in order to increase company performance and profitability.What are CIPD high performance work systems?
The term "high-performance work systems" refers to "a collection, or bundle, of human resource management methods linked to selection, training, performance management, remuneration, and information exchange that are meant to recruit, retrain, and inspire individuals" (Messersmith and Guthrie 2010, p. 242).
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after analyzing the profit projections for next year, lisa reminded the group that production costs would continue to decline on those products that had been in production for five years. what concept was lisa referring to?
After going over the anticipated profits for the following year, Lisa remarked that for products that had been in production for five years, production costs would continue to drop. Lisa had in mind the experience curve concept.
What does the term "experience curve" mean?According to the Boston Consulting Group's idea known as the "Experience Curve," there is a reliable correlation between a company's total amount of output over time and its production costs.
Why does the experience curve occur?The experience curve's fundamental tenet is that the unit manufacturing cost of a standardized item consistently falls as the total quantity of production of that item rises.
An experience curve: how do you make one?Here's how to figure out your pricing using the experience curve: multiplied by the number of units times the variable cost per unit plus fixed overhead, divided by number of units, plus the set markup %. You can reduce the markup percentage for even more competitive price.
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What's attribution? A-the decision whether works are public domain B-finding New customers online using social media C-Giving credit to the creator of materials you use. D-communicating product news to customers
Answer: C
Explanation:
Answer:
C
Explanation: e2022
Should Shaun use gross pay or net pay when creating his budget? Explain your
reasoning.
Answer:
jjheeeneemme
Explanation:beenem
If+sales+are+$806,000,+variable+costs+are+62%+of+sales,+and+operating+income+is+$247,000,+what+is+the+contribution+margin+ratio?
The Contribution Margin Ratio Will be 38% .The difference between a company's revenues and variable costs, stated as a percentage, is known as the contribution margin ratio.
The difference between a company's revenues and variable expenses, represented as a percentage, is the contribution margin ratio. The amount of money available to pay fixed expenses is shown by this ratio.Formula for the Contribution Margin Ratio
A company's contribution margin ratio (CM ratio) is determined by dividing revenue by revenue less all variable costs. It stands for the small gain from manufacturing an extra unit.to learn more about contribution margin ratio click the links
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bdj co. wants to issue new 25-year bonds for some much-needed expansion projects. the company currently has 4.8 percent coupon bonds on the market that sell for $1,028, make semiannual payments, have a $1,000 par value, and mature in 25 years. what coupon rate should the company set on its new bonds if it wants them to sell at par? hint: the coupon on the new issue will be set at (close to) the yield on the existing bonds.
To determine the coupon rate that bdj co. should set on its new bonds in order for them to sell at par, we need to find the yield on the existing bonds.
Given that the existing bonds have a 4.8% coupon rate, sell for $1,028, make semiannual payments, have a $1,000 par value, and mature in 25 years, we can use the following steps: 1. Calculate the yield on the existing bonds: - First, find the present value of the existing bonds using the formula for the present value of a bond: PV = C * (1 - (1 + r)^(-n))/r + F/(1 + r)^n, where PV is the present value, C is the coupon payment, r is the yield to maturity, n is the number of periods, and F is the par value. - In this case, the coupon payment (C) is $1,000 * 4.8% / 2 = $24, the yield to maturity (r) is unknown, the number of periods (n) is 25 years * 2 = 50 semiannual periods, and the par value (F) is $1,000. - Set the present value (PV) to $1,028 and solve for the yield to maturity (r). 2. Once you have the yield on the existing bonds, set the coupon rate on the new bonds close to this yield. By following these steps, you can determine the coupon rate that bdj co. should set on its new bonds for them to sell at par.
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To determine the coupon rate that bdj co. should set on its new bonds in order for them to sell at par, we need to find the yield on the existing bonds.
Given that the existing bonds have a 4.8% coupon rate, sell for $1,028, make semiannual payments, have a $1,000 par value, and mature in 25 years, we can use the following steps: 1. Calculate the yield on the existing bonds: - First, find the present value of the existing bonds using the formula for the present value of a bond: PV = C * (1 - (1 + r)^(-n))/r + F/(1 + r)^n, where PV is the present value, C is the coupon payment, r is the yield to maturity, n is the number of periods, and F is the par value. - In this case, the coupon payment (C) is $1,000 * 4.8% / 2 = $24, the yield to maturity (r) is unknown, the number of periods (n) is 25 years * 2 = 50 semiannual periods, and the par value (F) is $1,000. - Set the present value (PV) to $1,028 and solve for the yield to maturity (r). 2. Once you have the yield on the existing bonds, set the coupon rate on the new bonds close to this yield. By following these steps, you can determine the coupon rate that bdj co. should set on its new bonds for them to sell at par.
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What percentage of invested capital does inventory represent?
50%
60%
70%
80%
The percentage of invested capital does inventory represent is given by the option D that is 80%.
The term stock alludes to the unrefined components utilized underway as well as the merchandise delivered that are ready to move. An organization's stock addresses perhaps of the main resource it has on the grounds that the turnover of stock addresses one of the essential wellsprings of income age and ensuing profit for the organization's investors. There are three sorts of stock, including unrefined substances, work underway, and completed products. On the balance sheet of a company, it is listed as a current asset.
A company's inventory is a very important asset. It is characterized as the variety of merchandise utilized underway or completed products held by an organization during its not unexpected course of business. Raw materials (any supplies used to produce finished goods), work-in-progress (WIP), and finished goods (those that are ready for sale) are the three general categories of inventory.
As verified above, stock is delegated an ongoing resource on an organization's monetary record, and it fills in as a support among assembling and request satisfaction. The carrying cost of an inventory item moves to the income statement's cost of goods sold (COGS) category when it is sold.
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how can an organization prevent decisions made by a decentralized manager from being inconsistent with the firm's objectives?
Overall, by implementing these strategies, an organization can minimize the risk of inconsistent decisions made by decentralized managers and ensure that their actions are in line with the firm's objectives.
To prevent decisions made by a decentralized manager from being inconsistent with the firm's objectives, an organization can implement several strategies:
1. Clearly communicate objectives: The organization should ensure that the firm's objectives are clearly defined and communicated to all managers, including decentralized managers. This helps managers understand the overall goals and align their decision-making accordingly.
2. Establish performance metrics: Implementing performance metrics that align with the organization's objectives can help evaluate and measure the effectiveness of decentralized managers' decisions. These metrics could include financial indicators, customer satisfaction ratings, or key performance indicators (KPIs) specific to the organization's industry.
3. Regular monitoring and feedback: The organization should regularly monitor the decisions and actions of decentralized managers. This can be done through periodic meetings, performance reviews, or even automated tracking systems. Providing feedback and guidance helps ensure that the managers are making decisions that align with the firm's objectives.
4. Collaboration and coordination: Encouraging collaboration and coordination among decentralized managers can help prevent inconsistent decision-making. This can be achieved through regular communication channels, such as team meetings, online platforms, or even cross-functional projects. By working together, managers can share insights, align strategies, and ensure consistency.
5. Training and development: Providing training and development opportunities to decentralized managers can enhance their decision-making skills and increase their understanding of the firm's objectives. Training programs can focus on areas such as strategic planning, problem-solving, and critical thinking, enabling managers to make informed decisions that align with the organization's goals.
6. Review and adjustment: Periodically reviewing the decisions and outcomes of decentralized managers is crucial. If inconsistencies are identified, the organization should take corrective action by providing additional guidance, realigning objectives, or reevaluating the decision-making process.
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this means the lungs and the chest wall expand easily.
When we inhale, the lungs and the chest wall work together to expand the thoracic cavity, allowing air to fill the lungs. If the lungs and chest wall are healthy and flexible, this expansion happens easily and without much effort.
However, if there are any restrictions or limitations in the lungs or chest wall, such as stiffness or inflammation, the expansion may be more difficult and may require extra effort from the muscles healthy and flexible, involved in breathing. So, if the lungs and chest wall are able to expand easily, it generally indicates good respiratory health and function.
A person should combine aerobic activities with muscle-toning exercises to maintain optimal health and weight. Muscle exercise is crucial for toning and boosting a person's lean mass, while aerobic exercise is healthy for the heart and circulatory system. All of this must be connected to a balanced, healthy diet. As a result, people can achieve their optimum weight in a safe manner.
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Which of the following factors are considered when calculating GDP? I. Goods produced within a country by citizens of that country II. Goods produced within a country by residents who are not citizens III. Goods produced within a country for use in production of other goods IV. Goods produced by a country’s citizens outside of its borders a. II and III b. I only c. I and II d. I, II, III, and IV.
GDP refers to the total value of goods and services produced by resident and non-resident during a year in a country.
What is GDP?Gross Domestic Product refer to the gross value (in terms of money) of finished goods and services produced in a country within a year by resident and non-resident in domestic territory of the country.
The above option I and II describes the factors considered for calculation of GDP, i.e. Goods produced by citizens as well as non-resident within a country.
Therefore, option c aptly describes the factors considered for calculating GDP.
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Answer:
C. I and II
Explanation:
Solution toQuestion 2. On completion of writing up the books,the following matter are bought to attention; a stock of food and drink at 28th February 2012 are value at $250
The stock of food and drink at 28th February 2012 has a value of $250. This information should be included in the accounting records as it represents a current asset, specifically inventory.
The value of inventory should be recorded in the balance sheet and used in calculating the cost of goods sold for the period. It is important to keep track of inventory to ensure that it is not overstocked or understocked, which can affect profitability.
1. The question states that on completion of writing up the books, it's noted that there's a stock of food and drink.
2. The value of this stock at 28th February 2012 is given as $250.
3. Therefore, the solution to question 2 is that the value of the stock of food and drink at 28th February 2012 is $250.
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A sous chef starts a retirement savings plan by depositing $350 per month at the beginning of each month into an account that earns an annual interest rate of 5.5% compounded monthly. Find the value (in dollars) of this investment after 20 years. (Round your answer to the nearest cent.)How much interest (in dollars) will she pay over the term of the loan? (Round your answer to the nearest cent.)
After 20 years, the retirement savings plan of the sous chef will have a value of approximately $182,590.72. Over the term of the plan, she will pay approximately $92,590.72 in interest.
To calculate the value of the investment after 20 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the initial deposit
r = the annual interest rate (expressed as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, the initial deposit (P) is $350 per month, the annual interest rate (r) is 5.5% or 0.055, the interest is compounded monthly (n = 12), and the investment period (t) is 20 years.
First, we need to calculate the total number of monthly deposits:
20 years x 12 months = 240 months
Next, we substitute the values into the formula and calculate the final amount (A):
A = $350 * (1 + 0.055/12)^(12*20)
A ≈ $182,590.72
Therefore, after 20 years, the retirement savings plan of the sous chef will have a value of approximately $182,590.72.
To calculate the amount of interest paid over the term of the plan, we subtract the total amount deposited from the final amount:
Interest = A - (P * number of deposits)
Interest = $182,590.72 - ($350 * 240)
Interest ≈ $92,590.72
Therefore, over the term of the loan, the sous chef will pay approximately $92,590.72 in interest.
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The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain.
yes, no matter what company say, they need money for funding for "social change"
Have you ever considered designing a program to help people? Here is your chance. Follow the instructions below to design some of the important elements of your own human services program.
Create a mission statement specific to what you are setting out to accomplish.
Consider the following questions and make notes:
What is the need?
Why do people need your organization?
Who will your organization help?
What is your service population?
Where will these services be made available?
How will you inform people of your services?
List Objectives/Tasks
Immediate
Objective 1: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Long Term
Objective 2: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Staff
How many direct service positions are available? What positions are they?
How many program-planning and design positions are available? What positions are they?
How many administrative positions are available? What positions are they?
What is the total number of staff members needed?
Budget
Define the needs of your organization, such as supplies, equipment needed, property, etc. What role will fundraising play in budget planning?
Evaluation
Design a method for monitoring your progress. Explain the details of how you intend to use this tool to ensure that you are on track for accomplishing your goals for your organization.
Name
Finally, after considering the nature of your organization, develop a name for it.
Make a presentation of your organization's mission statement, goals, target population, principles, etc. This can be in the form of a four-hundred-word essay, a three-page outline, or a graphic representation such as a chart.
To create a human services program, you must first develop a business plan that aligns with your needs and then create the mission statement.
How to create a business plan?It corresponds to a document used to identify all the needs of a new business, such as its risks, resources, legal requirements, mission, personnel needs, etc. successful.
The mission statement is developed to be the statement of the identity of a business in the market, that is, it is a summarized document that demonstrates the reason for the existence of the business, who are its stakeholders and what are the company's values.
Therefore, questions like "What is the need?" and "Why do people need your organization?" will serve as a guide that will direct the creation of the business plan and mission statement in a way that is more aligned with your objectives.
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The fee earned by a servicer in exchange for administering a loan for an investor is called the:
A. Investor income fee
B. Servicing fee
C. Incentive fee
D. Float revenue
The fee earned by a servicer in exchange for administering a loan for an investor is indeed called the investor income fee. For that reason, the correct option is A.
The (option A) investor income fee is a compensation paid to the servicer for the work they do in managing and servicing a loan on behalf of the investor.
The servicer is responsible for collecting payments from the borrower, managing escrow accounts, and handling any necessary paperwork or communication related to the loan.
The investor income fee is typically a percentage of the outstanding balance of the loan, and it can vary depending on the terms of the loan agreement and the specific services being provided by the servicer.
This fee is an important source of income for servicers, as it allows them to cover their costs and earn a profit for the work they do.
In the United States, the economic and trade environment can impact the demand for loan servicing and the fees that are charged.
Changes in interest rates, government regulations, and market conditions can all have an impact on the servicer's ability to earn a profit and adapt to changing circumstances.
It's important to note that errors or mistakes made by the servicer can result in additional costs or lost money for the investor, so it's essential that the servicer performs their duties accurately and efficiently.
Overall, the investor income fee is a key aspect of the loan servicing process, and it helps to ensure that investors are able to earn a return on their investment while borrowers receive the funds they need.
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Yelp is offering a special on advertising. The special offers to reach 30,000 people for $1,800. What is the CPM (Cost Per Thousand) reached?
Answer:
$60
Explanation:
Cost per mile or cost per thousand is the amount the advertisers charge for every 1000 views. It is the cost incurred when an advertisement is exposed to 1000 people.
The CPM formula is CPM = 1000 * cost / impressions .
For yelp, the cost is $1800, and impressions are 30,000
CPM= 1000 x $1800
30,000
CPM = $1,800,000/30,000
CPM = $60
PROFIT/LOSS = TOTAL REVENUE - TOTAL COSTS
lan set up a taxi firm one month ago. He has calculated that his total monthly revenue was £2400.
He has added his costs together for the first month and they came to £2800. However, he spent
£1000 on a car for the business that he will not need to spend again.
1) What was his profit/loss for the month?
For the month it was €
1
2) Next month, what will his profit/loss be?
3) List 2 things that could happen that would increase his costs?
Answer:
What's the question? :) I'm an econ major btw.
Explanation:
The Reference list must be complete and without error because it is the mechanism by which readers track backward from the research report to find other research reports.
a. True
b. False
The answer to this question is true. The reference list plays a crucial role in academic writing, as it allows readers to trace the sources used in a research report.
By providing a complete and error-free reference list, authors demonstrate their credibility and accountability for the information presented in their work. It also helps readers to evaluate the quality and reliability of the sources used in the research report. Thus, it is essential for researchers to ensure that their reference list is accurate, complete, and follows the citation style guidelines required by their discipline.
Neglecting to include a reference list or including incomplete or inaccurate references can lead to accusations of plagiarism and can undermine the integrity of the research report. Therefore, authors should take the time to carefully review and edit their reference list to ensure that it is comprehensive and free of errors.
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How Can we Analysis for further
Answer:
Questions can take the form of explaining the evidence or expanding on evidence; in other words, questions can give context or add meaning. Asking both kinds of questions is crucial to creating strong analysis.
Which of these statements about a business plan is true?
A. Businesses do not need to document a business plan.
B. Established businesses do not create a business plan.
C. A business plan is a business’s roadmap for the future.
D. A business plan guarantees a business’s success.
Answer:
The correct answer would be option C, A business plan is a business's road map for the future.
Explanation:
A business plan is basically a written document, in which the goals of the company are written down. The methods to achieve those goals are also written down and the time to achieve the goals are specified. Goals with timelines and deadline are written. This helps a business in setting up a road map to move towards the set goals of the company. Established businesses always create and follow business plans as business plans guarantee a business's success.
Answer: C. A business plan is a business’s roadmap for the future.
he loves me, he gives me all his money, that gucci prada comfy, my suger daddy:)
Answer:
what did he sayyyyyyyyyy
dunn dunn dun dunn dun
A protocol stack is
another way of saying "network address"
O a set of supporting protocols in a series of layers
O the order of precedence in the transmission control protocol
O another way of saying "TCP/IP"
A protocol stack is: b. a set of supporting protocols in a series of layers.
What is protocol stack?A protocol stack refers to a set of communication protocols that are used together to facilitate communication between different devices on a network. The protocol stack is organized into different layers, with each layer responsible for a specific aspect of the communication process.
The layers in the protocol stack work together to ensure that data is transmitted reliably and efficiently across the network. Common examples of protocol stacks include the OSI model and the TCP/IP model.
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. A quadratic polynomial whose one zero is 6 and the sum of the zeroes is 0, is x*2-6
True
False
pls tell fast
Answer:
False
Explanation:
From the question, we can see that a quadratic polynomial is made up of two elements or variables called zeros in this question
From the question, we are told that one variable (zero) = 6
The second variable (zero) = unknown , therefore we can represent the second variable as Y
We are told that the sum of the variables = 0
This means:
6 + Y = 0
Therefore, Y = 0 - 6
Y = -6.
The second variable ( zero) = - 6
Since it is a quadratic polynomial,
The roots of the polynomials are the variables 6 and -6
Hence, we have:
(x + 6) (x - 6) = 0
Expanding the brackets
x² - 6x + 6x - 36 = 0
= x² - 36 = 0
Therefore, a quadratic polynomial whose one zero is 6 and sum of the zero is 0 is x² - 36 = 0
This means the statement made in the question above "A quadratic polynomial whose one zero is 6 and sum of the zero is 0 is x²-6" is false
do you think that people are more rational or irrational in their decisions? that is, do you think people use a cost-benefit analysis when they are thinking about a decision or do you think that we use gut feelings and the like more often?
People's decision-making processes can vary greatly and often involve a mix of rational and irrational elements. While some individuals may rely on a cost-benefit analysis to make informed, rational decisions, others might be influenced by gut feelings, emotions, or cognitive biases.
Ultimately, the balance between rational and irrational factors in decision-making can differ from person to person and from one situation to another. The individual and the situation. Some people are more rational in their decision-making process and carefully consider the costs and benefits of each option before making a choice. Others may rely more on their emotions and gut feelings when making decisions. It's also important to note that different decisions may require different levels of rationality. For example, a decision about which brand of cereal to buy may not require as much rational thinking as a decision about which college to attend.
Ultimately, the best approach is to find a balance between rational thinking and emotional intelligence to make well-informed decisions.
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Question 5 of 10
When gathering information, which of the following tasks might you need to
perform?
A. Apply standards, such as measures of quality, beauty, usefulness,
or ethics
B. Seek out ideas from others and share your own ideas
C. Study objects, conduct lijsts, research written materials, and ask
questions
D. Fill out forms, follow procedures, and apply math and science
SEN
Industry Y is dominated by five large firms that hold market shares of 41, 21, 17, 9, and 12 percent. The four-firm concentration ratio for this industry is
The four-firm concentration ratio for this industry is 91% if a Industry Y is dominated by five large firms that hold market shares of 41, 21, 17, 9, and 12 percent.
To calculate the four-firm concentration ratio for Industry Y, we need to add up the market shares of the four largest firms.
The four largest firms in Industry Y hold market shares of 41, 21, 17, and 12 percent.
When we add these percentages together, we get:
41% + 21% + 17% + 12% = 91%
The four-firm concentration ratio for this industry is 91% if a Industry Y is dominated by five large firms that hold market shares of 41, 21, 17, 9, and 12 percent.
Therefore, the four-firm concentration ratio for Industry Y is 91%. This means that the four largest firms in the industry control 91% of the total market share.
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While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2021 and each contributed $50,000 in exchange for a 50 percent ownership interest. GTE also borrowed $200,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE’s 2021 activities.
• GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis.
• GTE received $450,000 of sales revenue and reported $210,000 of cost of goods sold (it did not have any ending inventory).
• GTE paid $30,000 compensation to James, $30,000 compensation to Paul, and $40,000 of compensation to other employees (assume these amounts include applicable payroll taxes if any).
• GTE paid $15,000 of rent for a building and equipment, $20,000 for advertising, $14,000 in interest expense, $4,000 for utilities, and $2,000 for supplies.
• GTE contributed $5,000 to charity.
• GTE received a $1,000 qualified dividend from a great stock investment (it owned 2 percent of the corporation distributing the dividend) and it recognized $1,500 in short-term capital gain when it sold some of the stock.
• On December 1, 2021, GTE distributed $20,000 to James and $20,000 to Paul.
• GTE has qualified property of $300,000 (unadjusted basis).
Requirements:
a. Assume James and Paul formed GTE as an S corporation.
• Complete GTE’s Form 1120S page 1, Form 1120 S, Schedule K, and Paul’s Form 1120S Schedule K-1 (note that you should use 2020 tax forms).
• Compute the tax basis of Paul’s stock in GTE at the end of 2021.
• What amount of Paul’s income from GTE is subject to FICA or self-employment taxes?
• What amount of income, including its character, will Paul recognize on the $20,000 distribution he receives on December 1?
• What amount of tax does GTE pay on the $1,000 qualified dividend it received?
GTE, as an S corporation, has a pass-through taxation structure. I cannot complete the tax forms for you, but I can provide guidance on how to approach them.
1. Complete Form 1120S page 1 by reporting GTE's revenues, deductions, and other relevant financial information.
2. On Schedule K, report items such as the qualified dividend, short-term capital gain, and charitable contributions, which will flow through to the shareholders.
3. For Paul's Schedule K-1, allocate his share of the company's income, deductions, and credits based on his 50 percent ownership interest.
4. To compute the tax basis of Paul's stock in GTE at the end of 2021, start with his initial $50,000 contribution, and adjust for his share of the company's income, losses, and distributions.
5. Paul's income from GTE subject to FICA or self-employment taxes would be his $30,000 compensation. S corporation shareholders do not pay self-employment tax on their share of the company's income (reported on Schedule K-1).
6. The $20,000 distribution Paul receives on December 1 is generally not taxable, as it is considered a return of basis. However, if the distribution exceeds his stock basis, the excess would be treated as capital gain.
7. GTE, as an S corporation, does not pay tax on the $1,000 qualified dividend. Instead, the dividend flows through to the shareholders, who report it on their individual tax returns and pay the appropriate tax based on their individual tax rates.
Please consult a tax professional to ensure accurate completion of the required tax forms and for personalized advice on this scenario.
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Vendors provide restaurants with what?
OA
cooked items
OB.
raw materials
Oc.
furniture
OD.
menu recipes
Answer:
raw materials
Explanation: