Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering bor

Answer:

a. HORIZONTAL METHOD

INCOME STATEMENT

Date    Income           $          -        Expenses         $       =    Net Income

1 Nov    -                   -                          -                    -                   -

b. adjustment

31 for each  rent           5,300                 -                      -                  5,300

Month

c. BALANCE SHEET AS OF 31 DEC

                Assets        =      Equity     +     Liabilities

+ bank $84,800                    -                   prepaid expenses +$84,800

             

Explanation:

At the point of 1 Nov, there were no transactions recorded in the income statement since the revenue has yet to be realized; only the balance sheet shows + bank $31800 and + income received in advance (a liability) $31800

Each month's rent amounts to $31800/ 6 months =$5300

18 months rent totals to 95400

The unearned amount by December would then equal: 18 months - 2 months earned

                                       = 95400- 10600

                                       =$84,800

Answer:

The conversion cost per equivalent unit in the mixing department amounts to $ 14.19

Explanation:

Step 1 Determine the Number of Units Completed

Hint: Input units in process must equal output units from the process

Thus, Units Completed = 4,000 units+8,000 units - 2,500 units

= 9,500 units

Step 2 Assess the total conversion cost for the period within the process

Hint: Conversion costs in Opening Work In Progress + Conversion Costs Initiated during the Process

So:

Opening Work In Progress         $55,000

Plus Costs Initiated during the Process $92,000

Total Conversion Costs              $149,000

Step 3 Calculate the total Equivalent Units concerning Conversion Costs

Completed Units - 100%               9,500

Closing Work in Progress - 40%   1,000

Total                                              10,500

Step 4 Determine the cost per equivalent unit for conversion costs in the mixing department

cost per equivalent unit for conversion costs= total conversion cost/ total Equivalent Units

= $149,000/ 10,500

= $ 14.19

The correct answer is B) Cultural pollution. Cultural pollution refers to the degradation of culture that occurs when an overwhelming amount of art, language, clothing, media, and products without real significance saturates society. It can often be experienced in earnest by those who are uncritical, as well as ironically appreciated by the educated and disillusioned.

Response:

To begin with, let's clarify current and deferred taxes;

Current Tax - The amount of Income Tax that needs to be paid based on taxable income during a specific timeframe.

Deferred Tax - This refers to taxes resulting from timing discrepancies. The gap between tax expenses (calculated based on accrual) and the current tax liability for a given period in accordance with Federal Income Tax Law defines deferred tax, whether it manifests as an asset or liability. This leads to the formulation: Tax Expenses + Current Tax + Deferred Tax.

Following these explanations, the resolution to the question is provided below:-

Details Amount

Income for the Current Year as per financial records $ 48,000

Taxable Income for the Current Year according to Income Tax Regulations $ 38,000

Tax Payable for the Current Year based on Federal Income Tax Regulations $ 5,600

Tax Due for the Current Year according to financial records $ 7,600

Deferred Tax Asset to record in the financial ledgers $ 2,000

Tax Rate applicable for recording Deferred Tax Asset in the financial ledgers = 20%

Answer:

2.33; the demand for movies is elastic

Explanation:

Below is the calculation for price elasticity of demand:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)

Here, the change in quantity demanded is defined as

= Q2 - Q1

= 30 - 15

= 15

The average quantity demanded is

= (30 + 15) ÷ 2

= 22.50

The change in price is computed as

= P2 - P1

= $8 - $6

= $2

And the average price is

= ($8 + $6) ÷ 2

= 7

Thus, after computing, the result for price elasticity of demand is 2.33

As we were not instructed on the method for calculation, the mid-point formula was utilized.

From this calculation, we deduce that the demand for movies is indeed elastic.