Restoration, Inc., a leading manufacturer of antique car parts, divided its manufacturing process into two Departments - Production and Packing. The estimated overhead costs for the Production and Packing departments amounted to $14,000,000 and $20,000,000, respectively. The company produces two types of parts - Part 1 and Part 2. The total estimated labor hours for the year were 40,000, and estimated machine hours were 35,000. The Production department is mechanized, whereas the Packing department is labor oriented. Calculate departmental predetermined overhead allocation rates.
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What is the present value (PV) of $90,000 received six years from now, assuming the interest rate is 5% per year?
A) $58,500.00 B) $57,085.48 C) $67,159.39 D) $117,528.93
Marko is the CEO of the advertising department at Foster-Ghent, a company that encompasses a variety of personal hygiene brands, including Lush Soap and New Gleem toothpaste. Foster-Ghent does business in 65 countries through one or more operating companies, with a total of about 50 companies in the Foster-Ghent group. Tanvi is the advertising and marketing manager for the Indian market. Based on your knowledge of the transnational model, which of the following best describes how Marco and Tanvi would divide responsibilities?
A. The new advertising campaign for Foster-Ghent's Clearly Clean contact solution are fully designed by Marco and his local team. Tanvi oversees translation of the ads. B. Marco and his local team create an advertising campaign and strict guidelines for implementing it. Tanvi is merely responsible for ensuring the guidelines are followed by her staff. C. The general guidelines for the new Clearly Clean contact solution advertising comes from Marco's team, but Tanvi is allowed to design campaigns that will appeal to the local market. D. Members of Marko's local team personally direct all advertising, traveling to India to meet with Tanvi several times a year to direct the design and launch of its various campaigns. E. Tanvi designs, from start to finish, an advertising campaign for Clearly Clean, Foster-Ghent's new line of contact lens solution. Marko signs the check to pay for the billboards.
On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: BookValuesFairValuesCurrent assets$120,000 $120,000 Land 72,000 192,000 Building (twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long-term liabilities 120,000 210,000 Common stock 228,000 Additional paid-in capital 384,000 Retained earnings 216,000 ??Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. ?In Cale's accounting records, what
amount would appear on December 31, 2017 for equity in subsidiary earnings? A. $77,000. B. $79,000. C. $81,800. D. $127,000. E. $125,000.
Worthy Corporation elected to be taxed as an S corporation on January 1, of last year, effective last year. It had previously been a C corporation. On the effective date of the S election, Worthy had land with a $70,000 basis and a $210,000 FMV. No net unrealized losses exist on the date of the S corporation election. The land is sold this year for $250,000. The tax result of the sale by Worthy is
A) no gain or loss recognized. B) a gain of $180,000, none of which is subject to the built-in gains tax. C) a gain of $180,000, all of which is subject to the built-in gains tax. D) a gain of $140,000 subject to the built-in gains tax and passes though to shareholders, plus a $40,000 gain subject to the regular S corporation pass-through rules.