The following information pertains to Genie Company: Standard materials allowed $12,000 Unfavorable materials price variance 2,000 Favorable materials usage variance 1,000 Actual payroll $20,000 Unfavorable labor rate variance 1,500 Unfavorable labor efficiency variance 500 What is the entry to record the direct materials cost and variances, assuming that the price variance is recorded when the
materials are put into production?
a. Materials 12,000
Materials price variance 2,000
Accounts payable 13,000
b. Work in process 12,000
Materials quantity variance 1,000
Materials price variance 2,000
Materials 11,000
c. Work in process 11,000
Materials price variance 2,000
Materials 13,000
d. Work in process 12,000
Materials price variance 2,000
Materials quantity variance 1,000
Materials 13,000
d
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If on January 3 a company declares a dividend of $1.50 per share, payable on January 31 to holders of record on January 17, then the price of the stock should drop by approximately $1.50 on January 15, which is the ex-dividend date.
Answer the following statement true (T) or false (F)
How do market participants gauge the default risk of a bond issue?
What will be an ideal response?
Harry owns equipment ($50,000 basis and $38,000 FMV) and a building ($140,000 basis and $156,000 FMV), which are used in his business. Harry uses straight-line depreciation for both assets, which were acquired several years ago. Both the equipment and the building are destroyed in a fire, and Harry collects insurance proceeds equal to the assets' FMV. The tax result to Harry for this transaction is
A) the involuntary conversions are treated as ordinary gains and losses. B) the involuntary conversions are treated as Sec. 1231 gains and losses. C) the loss on involuntary conversion is treated as a Sec. 1231 loss while the gain is treated as an ordinary gain. D) the loss on involuntary conversion is treated as an ordinary loss while the gain is treated as a Sec. 1231 gain.
The management of a company has introduced a new performance incentive scheme for its employees. Anticipating that the employees may raise objections to the change, the management calls for a meeting. In the meeting, the management highlights some of the benefits of the new incentive scheme, such as how the opportunity to earn more will enable them to spend more. Which of the following persuasion tactics is the company using?
A. The company is creating a frame for common ground to convince the employees to accept the changes. B. The company is providing specific social proof to persuade the employees to adapt to the changes. C. The company is using "efficacy" from the ACE Theory to persuade its employees. D. The company is using the employees' self-serving biases to their advantage.