Answer:
the critical zone
Explanation:
So, we have the following information or data from the question/problem, they are:
=> In order to improve on the restaurant service and give more quality, customers data were collected in from Friday and Saturday nights which happens to be the local restaurant's busiest times of the week.
=> From the data collected it was shown that 75 customers arrive per hour for service.
=> After getting the data above the owners of the local restaurant estimated that they can serve on average about 100 customers per hour.
In order to improve on the restaurant service and give more quality, the utilization rate must be calculated. Therefore the utilization rate is arrival rate divided by service rate that is to say;
The utilization rate = arrival rate/ service rate.
The utilization rate = 75/100 = 0.75 = 75%.
The next step is to draw the diagram showing the relationship between rate of service utilization and service rate.
So, from the graph we have that with the 75%, the zone that it falls to is the CRITICAL ZONE.
What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?
Answer:
Single: this includes never-married, divorced, or legally separated persons who do not have any dependents during the tax year.
Married, Filing Jointly: this includes married individuals (with or without dependents) who combine their income on one tax return.
Married, Filing Separately: this includes married individuals (with or without dependents) who each file a separate tax return on only their own income.
Head of Household: this includes a single individual who maintains a household for one or more dependents (paying more than half of their support).
Qualifying Widow(er): this includes individuals whose spouse has died within the past two years and the individual is supporting at least one dependent.
Explanation:
Prepare your taxes on your own: If you have a simple return or some degree of tax knowledge, this may be a great option, as it can save you the cost of having someone else prepare them. Tax forms are available online and in locations such as libraries and post offices; however, it’s worth remembering it is a complicated process, and if you are not experienced with it, there may be a considerable learning curve and chance of error.
Prepare your taxes with the help of an electronic tax program: If you want to prepare your own taxes but need or want more guidance, there are a number of tax software programs available today to help you. By purchasing the right software or using an online site to prepare the forms, the process can be made much easier, guiding you through the areas of returns and deductions. These options may be less expensive than hiring a professional, and they do provide a lot more guidance. Online tax preparation sites also offer easy electronic filing, which can speed up any refunds you are owed. Just remember, even the best software may not identify all of the deductions or credits for which you may be eligible, and you may still have lingering questions.
Hire someone to prepare your taxes: Over 85 percent of people in the United States use a professional service every year. Depending on who you choose, this service can cost anywhere from $50 to $2,000 or more for extremely complicated returns. There are a few benefits to utilizing a professional preparation service, one being an expert is likely to be more up-to-date on tax laws and any deductions you might deserve. However, you are still responsible for supplying the tax professional with accurate information, and tax preparation services that offer “refund anticipation loans” often charge high interest rates on these credits.
Item 13Item 13 A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 30,000 units, 75% complete with respect to direct labor and overhead. The department completed and transferred out 127,500 units this period. The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:
Answer:
$0.25
Explanation:
Note: The direct labor beginning inventory costs were $9,000 was missing
Equivalent unit for direct labor cost
Unit transferred 127,500 100% 127,500
Ending WIP Inventory 20,000 25% 5,000
Total 147,500 132,500
Total Cost
Cost in WIP Beginning 9,000
Cost added during period 24,000
Total cost 33,000
Cost per equivalent unit = Total Cost / Equivalent unit for direct labor cost
Cost per equivalent unit = 33,000 / 132,500
Cost per equivalent unit = $0.25
1.Processes A, B, C, D, E, and F require service times of 3, 5, 2, 5, 3, and 5. Their arrival times are 0, 1, 3, 9, 10, and 12. What is the average turnaround time, waiting time, response time, and throughput when using SRJF, RR (q
Answer:
please check attachment for the answers I gave. they are in tabular form
Explanation:
A company has a pension liability of $460,000,000 that it must pay in 29 in years. If it can earn an annual interest rate of 4.2 percent, how much must it deposit today to fund this liability?
a. $133,883,255.09
b. $139,506.351.81
c. 44,08571.14
d. $11755.30770
e. $121423,867.90
Answer:
PV= $139,506,351.8
Explanation:
Giving the following information:
Future Value= $460,000,0000
Number of periods= 29 years
Interest rate= 4.2%
To calculate the initial investment, we need to use the following formula:
PV= FV / (1+i)^n
PV= 460,000,000 / (1.042^29)
PV= $139,506,351.8
What does it mean to be in the black?"
a. Your financial records are in good order.
b. Your financial records are being called into question.
C. You have more credits than debits.
d. You have more debits than credits.
Please select the best answer from the choices provided
OA
OB
С
D
Answer:
C. You have more credits than debits.
Explanation:
In the financial world, certain terms are used that are understood by those in the financial world. One such word is the phrase "being in the black".
This phrase "being in the black" means when someone of a company has more credits than debits. This means that the inflow of money is more than outgoing. So, it is a good thing and that the company or the person is in a stable condition, not in debt, and financially solvent and safe.
Thus, the correct answer is option C.
Answer:
C
Explanation:
You have more credits than debits.
g Question 3 At Springfield, the engraving department is a bottleneck, and the company is considering hiring an extra worker, whose salary will be $55,577 per year, to mitigate the problem. With the extra worker, the company will be able to produce and sell 7,700 more units per year. The selling price per unit is $13.00. Cost per unit currently is $7.69 as follows: Direct material $2.56 Direct labor 1.00 Variable overhead 0.23 Fixed overhead (primarily depreciation of equipment) 3.90 Total $7.69 Calculate the annual financial impact of hiring the extra worker. The annual net profit will by $ by hiring the extra worker.
Answer:
The net income will increase by $15,340 due to hiring of extra worker.
Explanation:
Salary of extra worker = $55,577
Extra production = 7,700 units
Selling price per unit = $13
Direct material per unit = $2.56
Direct labor per unit = $1.00
Variable overhead per unit = $0.23
Fixed overhead = $3.90. Due to extra production, fixed overhead will not increase.
Particulars Amount
Sales revenue (7,700 * 13) $100,100
Expenses:
Direct material (7,700 * $2.56) -$19,712
Direct labor (7,700 * $1.00) -$7,700
Variable overhead (7,700* 0.23) -$1,771
Salary of extra worker -$55,577
Net income $15,340
Thus, due to hiring of extra worker net income income will increase by $15,340
Honeywag common stock is expected to pay $1.85 in dividends next year, and the market price is projected to be $42.50 per share by year-end. If investors require a rate of return of 11 percent, what is the current value of the stock?
Answer:
Current Price = $39.79275 rounded off to $39.79
Explanation:
Using the constant growth of dividend model, we can calculate the price of the stock at any time. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
Do is dividend todayg is the growth rater is the required rate of returnAs we have P1, D1 and r available, we can use this to calculate the growth rate in dividends. We will use the following formula to calculate the price today.
Price today = Future price * (1 - g)
First we calculate the growth rate using P1, D1 and r in the constant growth rate formula.
42.5 = 1.85 * (1+g) / (0.11 - g)
42.5 * (0.11 - g) = 1.85 + 1.85g
4.675 - 42.5g = 1.85 + 1.85g
4.675 - 1.85 = 1.85g + 42.5g
2.825 = 44.35g
2.825 / 44.35 = g
g = 0.063697 or 6.3697% rounded off to 0.0637 or 6.37%
Now we calculate the current price of the stock to be,
Current Price = 42.5 * (1 - 0.0637)
Current Price = $39.79275 rounded off to $39.79
The dividend is the amount paid to the shareholders in the form of returns paid for the per number of shares held by the shareholders. The rate of dividend is fixed for preference shareholders, while it depends on the profit earned during the particular period.
The current value of the stock is $39.79
The current value of the stock will be computed by using the dividend growth model.
Computation:
Current value:
[tex]\begin{aligned}\text{Current Stock Value}&=\text{Future Price}\times\left(1-\text{growth rate} \right )\\&=\$42.50\times\left(1-0.0637 \right )\\&=\$39.79\end{aligned}[/tex]
Working Note:
Computation of growth rate:
[tex]\begin{aligned}\text{P0}&=\text{D0}\times\frac{\left(1+\text{g} \right )}{\left(\text{r-g} \right )}\\\$42.50&=\$1.85\times\frac{1+\text{g}}{\left( 0.11-\text{g}\right )}\\\$42.50\times\left( 0.11-\text{g}\right )&=\$1.85+\$1.85\text{g}\\\$4.675+\$42.5\text{g}&=\$1.85+\$1.85\text{g}\\ \$4.675-\$1.85&=\$1.85\text{g}+\$42.50\text{g}\\ \$2.825&=\$44.35\text{g}\\ \frac{\$2.825}{\$44.35}&=\text{g}\\ \text{g}&=0.06369\;\text{or}\;6.37\%\end{aligned}[/tex]
were,
P0 is the market price
D0 is the current dividend
g is the growth rate
r is the required rate of return
To know more about the dividend growth model, refer to the link:
https://brainly.com/question/24044979
Carolyn is looking over opinions based primarily on research studies. She has found that there are 31 of them in total. What organization is Carolyn researching?
Answer:
d. APB
Explanation:
Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?
These are the options for the question
a. CAP
b. AICPA
c. SEC
d. APB
We are informed Carolyn who is looking over published accounting opinions based primarily on research studies. The organization Carolyn researching is Accounting Principle Board.
APB( Accounting Principle Board) belongs to a body of American institute of Certified public accountant in US.
it was been run and organised by American Institute of Public Accountants. APB can be regarded as organization which is a forerunner of
Financial Accounting Standards Board. This APB usually offer discounts on professional training with them as well insurance on journal subscription to their member. They are good in offering research on Accounting and finance.
General Electric issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:_____________
Answer:
Interest Charge $20,000 (debit)
Cash $20,000 (credit)
Explanation:
Find the Issue Price (PV) so as to construct the amortization schedule.
Pmt= ($500,000 × 8%) ÷ 2 = $20,000
i = 8%
Fv = $500,000
P/yr = 2
N= 15 × 2 = 30
Pv = ?
Using a Financial calculator to enter the data as above, Pv would be $500,000.
Answer:
Explanation:
Date Journal Entry Debit Credit
Bond Interest Expense $20,000
Cash $20,000
(Being semi-annual interest payment on bonds)
Workings:
The semi-interest payment = Coupon rate × par Value × 1/2
Semi-annual interest payment = 8% * $500,000 * 1/2
Semi- annual payment = $20,000
Jake owns Delta Dew, a small local California marijuana producer and dispensary. Jake complies with all applicable state laws and is licensed in California to produce and dispense marijuana. Jake is sued by the federal government for violation of the federal Controlled Substances Act, which makes it illegal to produce and sell marijuana. In defense of the lawsuit and prosecution, Jake's best argument is:
Answer: C.The federal Commerce Clause only allows regulation of intrastate commerce, not interstate commerce.
Explanation:
The options are:
A.The federal Congress lacks in personam jurisdiction.
B.The federal Congress has exceeded its constitutional authority to regulate interstate commerce.
C.The federal Commerce Clause only allows regulation of intrastate commerce, not interstate commerce.
D.The application of this statute violates state law, so it is unconstitutional.
Based on the scenario in the question, in defense of the lawsuit and prosecution, Jake's best argument is that the federal Commerce Clause only allows regulation of intrastate commerce, not interstate commerce.
This is an example of intrastate commerce which should typically be left for the state government to handle as the state shouldn't be deprived of its function even though in certain rare cases, the Federal government may interfere.
Bergeron is a local manufacturer of off-shore drilling platforms. In 2020, Bergeron entered into a contract to construct a drilling platform, which will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Bergeron estimates the total construction cost at $2,000,000. Actual costs incurred in 2020 are $600,000. If Bergeron uses the completed contract method, the gross profit for 2020 is
Answer:
$900,000
Explanation:
The first step is to calculate the percentage completed
= 600,000/2,000,000
= 0.3
The revenue can be calculated as follows
= 5,000,000 × 0.3
= 1,500,000
Therefore the gross profit for 2020 can be calculated as follows
=1,500,000 -600,000
= $900,000
What features of the 100 Yen Sushi House service delivery system differentiate it from the competition, and what competitive advantages do they offer?
Answer:
The summary and as per the query is defined in the following portion of the clarification.
Explanation:
The key characteristics including its 100 yen sushi management of service distribution system are its approaches to meal preparation and facilities on the manufacturing process. The client is also involved throughout the supply chain. The regular price, the conveyor belt mechanism throughout the location, which passes across the commercial counter, is three to four chefs on the floor.
The benefits of this are the people that follow:
High-tech independence including the use of clear methods. The positions that their operation involves repetition throughout their manufacturing method there might be other providers that could follow 100 yen sushi household operational efficiency. The distribution system used for the 100 yen sushi household delivery of services may also be regarded for car production. By only using throughout time method, the location uses freshly delivered food. The position has always had to estimate the volume of food purchased as well as cook it regularly according to the purchase request.Waldman Associates received a written, approved contract to deliver economic consulting services, with service and payment commencing in one month. The contract specifies the services that Waldman is to perform, and the payment terms. Waldman and the customer both can cancel the contract without penalty prior to commencing service. Does Waldman have a contract for purposes of revenue recognition on the day the contract is received
Answer:
Waldman Associates
Waldman does not have a contract for purposes of revenue recognition on the day the contract is received.
Explanation:
Revenue from contracts with customers becomes recognizable after the performance of the obligations and not before. Revenue is recognized when the contractor has transferred the benefits to the beneficiary and not before. Revenue, in this instance, is to be recognized based on past performance. According to IFRS 15 and ASC 606, revenue is recognized when each performance obligation has been fully satisfied. This is the point when economic benefit has been conferred on the other contracting party.
Suppose the banking system has $40 billion in reserves. Also assume that there are no cash leakages or excess reserves. If the central bank lowers the required reserve ratio from 20 percent to 16 percent, the money supply will
Answer:
Money supply increases by $1.6 billion
Explanation:
The reserve ratio is defined as the amount of a bank's reserves that the central bank of a country expects banks to keep as cash and not lend out.
Reserve ratio is also called cash reserve ratio.
This requirement is put in place in case customers decide to make mass withdrawals.
Central banks tend to control cash supply by increasing or reducing the reserve ratio.
When money to be supplied as loans is to be increased, the reserve ratio reduces so that banks can use more of their reserves for lending rather than for cash withdrawals.
In this instance reserve ratio reduced from 20% to 16%.
That is a 4% reduction
This means 4% of the reserves is freed up for lending or money supply to the public
Extra money supply = 0.04 * 40 billion = $1.6 billion
Money supply increases by $1.6 billion
What are also known as restrictive covenants or Covenants, Conditions and Restrictions and are constraints that run with the land?
a. Licenses
b. Liens
c. Deed restrictions
d. A bundle of rights
Answer:
Option c (Deed restrictions) is the correct alternative.
Explanation:
Deed limitations or restrictions are personal agreements anything in any way regulate use of such property development and therefore are stated in the deed. The purchaser can add a limitation to something like the subject property. Sometimes, in something like development, architects limit the parcels of land to ensure a certain degree of uniformity.Some other three considerations do not apply to the condition given. So, the solution is indeed the right one.
You invest $1,000 now, at an annual simple interest rate of 6%. What is the effective rate of interest in the fifth year of your investment
Answer:
The effective rate of interest in the fifth year is 6.15%
Explanation:
Mathematically, the effective rate of interest can be calculated as follows;
Reff = (1 + r/y)^y - 1
where;
r is the interest rate = 6% = 6/100 = 0.06
y is the period = 5 years
Substituting these values;
Reff = (1 + 0.06/5)^5 - 1
Reff = (1 + 0.012)^5 - 1
Reff = 1.012^5 - 1
Reff = 1.061457 - 1
Reff = 0.0615 which is 6.15%
A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a:______
a. credit to Petty Cash for $120
b. credit to Cash for $102
c. debit to Cash for $120
d. credit to Cash Short and Over for $3
Answer:
Credit to cash short and over of $3
Explanation:
Petty cash account is used to settle little expenses of a business that will not require writing a cheque.
The petty cash account has a balance that must be maintained when it is replenished.
When the account is above its limit it is debited and cash over and short is credited.
When it is below it's limit it is credited back to its normal balance and cash over and short is debited.
In the scenario the petty cash account has a limit of $135
There was a balance of $18 and a cash inflows of $120 making a total of $138.
This is over its limit
The excess is 138 - 135 = $3
This excess is debited from petty cash account and credited to cash short and over account
Dan and Rachel have been assigned to work together as co-leaders of an anxiety disorders group. In order to be effective models for their group members, they should:_________
a. seek supervision only if issues arise between them.
b. explore their personal beliefs and perspectives about cofacilitation.
c. inspire each other by competing with each other to develop the most creative techniques.
d. depend heavily on each other.
Answer:
b. explore their personal beliefs and perspectives about cofacilitation.
Explanation:
Looking at the above scenario, the right alternative for Dan and Rachel to be effective co-leader models for members of an anxiety disorder group would be to explore their personal beliefs and perspectives on cofacilitation.
A support group for anxiety disorders aims to share the beliefs, perspectives and personal experiences of each member of the group so that there is exchange and mutual support for problems, greater understanding and resolution of problems.
In this case, the leaders must be the facilitators of the group's objectives, that is, they must be the examples of how to engage the members of the group, include everyone in the exchange of experiences and motivate them to reach the solution of the problems.
Coca Cola stock has the following probability distribution of expected prices one year from now: State Probability Price 1 25 % $ 50 2 40 % $ 60 3 35 % $ 70 If you buy Coca Cola today for $55 and it will pay a dividend during the year of $4 per share, what is your expected holding-period return on Coca Cola
Answer:
18.18%
Explanation:
Calculation for the expected holding-period return on Coca Cola
First step is to calculate the Expected Price in one year
Expected Price in one year = 50*25% + 60*40% + 70*35%
Expected Price in one year =12.5+24+24.5
Expected Price in one year = $61
Last step is to get Calculate the Holding period return using this formula
Holding period return = (Price after 1 year + Dividend - Price amount paid)/Price amount paid
Let plug in the formula
Holding period return= (61+4-55)/55
Holding period return=10/55
Holding period return=0.1818*100
Holding period return= 18.18%
Therefore the expected holding-period return on Coca Cola will be 18.18%
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Answer:
1. 31 Dec 2021
Dr Net unrealized holding gain/loss 25,000
Cr Fair value adjustment 25,000
2. None
Explanation:
Preparation of Journal entry
First step is to calculate for the unrealized loss
Unrealized loss=Short term loss-Long term gain
Unrealized loss=45,000-20,000
Unrealized loss=25,000
Journal entry
31 Dec 2021
Dr Net unrealized holding gain/loss 25,000
Cr Fair value adjustment 25,000
(To record unrealized loss on available for sale securities)
2. No amount would be reported in the income statement at December 31, 2021 because the Net unrealized holding gain/loss will be reported in other comprehensive income .
A copy machine is available 24 hours a day. On a typical day, the machine produces 169 jobs. Each job takes about 5 minutes on the machine, 3 minutes of which is processing time and 2 minutes is setup time (logging in, defining the job). About 10% of the jobs need to be reworked, in which case the set-up time and the processing time must be repeated. The other time, the equipment is idle. What is the OEE of the equipment
Answer:
OEE=35.20%
Explanation:
Calculation for the OEE of the equipment
Using this formula
OEE = Value add time / Total time available
Let plug in the formula
OEE= (169 x 3) / (24 hours a dayx 60 minutes)
OEE= 507 / 1,440
OEE= 0.3520*100
OEE=35.20%
Therefore the OEE of the equipment will be 35.20%
Prompt
What is matrix organization?
<< Read Less
Answer:
An organization with more than 1 leader is a matrix organization
Explanation:
A matrix organization can be defined as an organization that has more than one form of management. In this organization structure, there is more than 1 leader or supervisor. The individuals here work across various projects. Organizations that have different product lines and also services use this kind of structure. It gives the organization more flexibility.
2. What's a good way to reduce food costs?
A buying items on sale
B making a shopping list and sticking to it
C making sure you go to the store on a full stomach
D all of the above
The Accessories Outlet has total equity of $257,000, sales of $508,000, total assets of $610,000 and a profit margin of 3.5 percent. What is the return on equity
Answer:
6.92%
Explanation:
Return on Equity = Net Income / Total Shareholders Funds × 100
Where,
Net Income = Sales × profit margin
= $508,000 × 3.5 %
= $17,780
Therefore,
Return on Equity = $17,780 / $257,000 × 100
= 6.92%
Builtrite stock just paid a dividend of $5 and dividends are expected to grow at a 4% annual rate. If you require a 10% annual return, what do you believe is a fair price for Builtrite stock?
A. $88.33.
B. $83.33.
C. $84.00.
D. $80.00.
Answer: $86.7
Explanation:
From the question, we are informed that Builtrite stock just paid a dividend of $5 and dividends are expected to grow at a 4% annual rate and that an annual return of 10% is required.
The fair price for Builtrite stock will be:
Current price=D1/(Required return-Growth rate)
=($5 × 1.04)/(0.10-0.04)
= $5.2/0.06
= 86.7
Consider a mutual fund with $240 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.5 million. The stocks included in the fund's portfolio increase in price by 5%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of .75%, which are deducted from portfolio assets at year-end. a. What is the fund's net asset value at the start and end of the year
Answer:
Net asset value at the start of the year = $240,000,000 / 10,000,000 shares
Net asset value at the start of the year = $24
Asset in the beginning $240,000,000
Increase in value $240,000,000*5% $12,000,000
Assets at the end $352,000,000
Less: 12b-1 Charges $352,000,000 * 0.75%) $2,640,000
Asset at the end $349,360,000
Net asset value at the end of the year = $349,360,000/10,000,000 shares
Net asset value at the end of the year = $34.936
Speicher sells sports shoes and formal shoes. Sports shoes sell for $110 each and cost $50 in variable expenses to make. Formal shoes sell for $220 and cost $100 in variable expenses to make. Speicher’s fixed expenses are $50,000. If 35% of his revenues are from sports shoes, what is Speicher’s weighted average contribution margin ratio? Provide your answer in decimal form (i.e. 65.2% = 0.652) and to three decimal places. Do not round intermediary calculations.
Answer:
weighted contribution margin ratio = 0.545
Explanation:
contribution margin of sport shoes = $110 - $50 = $60
contribution margin ratio of sport shoes = $60 / $110 = 0.545454
contribution margin of formal shoes = $220 - $100 = $120
contribution margin ratio of sport shoes = $120 / $220 = 0.545454
35% of total revenues come from sport shoes
weighted contribution margin ratio (it is the same for both products) = 0.545454 = 0.545
How long would it take to double your investment if you invest $2,000 at 7.5% compounded quarterly?
a. Less than 8 years
b. Between 8 and 9 years
c. Between 9 and 10 years
d. Between 10 and 11 years
e. More than 11 years
Answer:
c. Between 9 and 10 years
Explanation:
The computation of the time period is shown below:
Future value = Present value × (1 + interest rate)^number of years
$4,000 = $2,000 × (1 + 7.5% ÷4)^time period ×2
After solving this
The time period is
= 9.3283
Hence, it lies between the 9 and 10 years
Therefore the correct option is c.
And all other options are wrong.
A bank advertises it pays 4% annual interest, compounded daily, on savings accounts, provided the money is left in the account for 5 years. What is the effective annual interest rate
Answer:
effective annual rate= 0.04096 = 4.096%
Explanation:
Giving the following information:
Annual interest rate= 4% compounded daily
Number of periods= 365 days
To calculate the effective annual interest rate, first, we need to determine the nominal daily rate:
nominal daily rate= 0.04/365= 0.00011
Now, using the following formula, we calculate the effective annual rate:
effective annual rate= (1+nominal daily rate)^365 - 1
effective annual rate= (1.00011^365) - 1
effective annual rate= 0.04096 = 4.096%
Assume that on July 1, 2013, a parent company paid $1,891,000 to purchase a 75% interest in a subsidiary's voting common stock. On that date, the fair value of the 25% interest not purchased by the parent company is $625,000. The acquisition-date fair value of the identifiable net assets of the subsidiary is $2,400,000. What is the amount of goodwill assigned to the controlling and noncontrolling interests, respectively, on the acquisition date
Answer:
Controlling Interest Goodwill
= Purchase price - Ownership stake in net assets of the subsidiary
= 1,891,000 - (2,400,000 * 75%)
= $91,000
Non-Controlling interest Goodwill
= Fair value of the minority stake - Ownership stake in net assets of subsidairy
= 625,000 - (2,400,000 * 25%)
= $25,000