Blossom Co. At the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $2285000 Estimated litigation expense 3285000 Extra depreciation for taxes (5298000) Taxable income $ 272000 The estimated litigation expense of $3285000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1766000 in each of the next 3 years. The income tax rate is 20% for all years.


Income taxes payable is: _________

Answers

Answer 1

The income taxes payable for Blossom Co. in 2020 is $629,133.

To calculate the income taxes payable, we need to start with taxable income and then apply the applicable tax rate. From the information given in the question, we have;

Taxable income = $272,000

Next, we need to calculate the income tax expense for the year, which is calculated as follows;

Tax expense=Taxable income x Tax rate

Tax expense = $272,000 x 20% = $54,400

Now, we need to adjust the tax expense for any timing differences between the financial income and taxable income. In this case, we have two timing differences;

The estimated litigation expense of $3,285,000 will be deductible in 2021 when it is expected to be paid. This means that the expense is not deductible in 2020 for tax purposes, so we need to add it back to taxable income.

The extra depreciation for taxes of $5,298,000 reduces taxable income in 2020, but it will result in taxable amounts of $1,766,000 in each of the next 3 years. This means that we need to add back the extra depreciation for taxes to taxable income in equal installments over the next 3 years.

Adjusting for these timing differences, the income tax payable for 2020 can be calculated as follows;

Tax expense for 2020 = $54,400

Add back estimated litigation expense = $3,285,000

Add back 1/3 of extra depreciation for taxes = $1,766,000/3

= $588,667

Adjusted taxable income for 2020 = $3,145,667

Adjusted tax expense for 2020 = $3,145,667 x 20%

= $629,133

Therefore, the income taxes payable is $629,133.

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Related Questions

A major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR = 10%.



Required:


a. The payback period for this equipment purchase is:_______


b. The B/C ratio for this investment is:__________


c. The NFW of this investment is : __________


d. Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every year for the next 10 years from today. She stops investing from year 1 1 until year 20. If she earns a rate of return of 7% on her investments, determine future worth of her investments 20 years from now?

Answers

a. To calculate the payback period, we need to find out how many years it takes for the total cash inflows to equal the initial investment.

Year 1 cash inflow: $100,000

Year 2 cash inflow: $150,000

Year 3 cash inflow: $200,000

Year 4 cash inflow: $250,000

Year 5 cash inflow: $300,000

Year 6 cash inflow: $350,000

Total cash inflows = $1,350,000

Payback period = $1,000,000 ÷ $100,000 = 10 years

b. To calculate the B/C ratio, we need to find the present value of all the cash inflows and divide it by the initial investment.

PV of Year 1 cash inflow: $100,000 ÷ (1 + 10%)^1 = $90,909.09

PV of Year 2 cash inflow: $150,000 ÷ (1 + 10%)^2 = $113,636.36

PV of Year 3 cash inflow: $200,000 ÷ (1 + 10%)^3 = $136,363.64

PV of Year 4 cash inflow: $250,000 ÷ (1 + 10%)^4 = $159,090.91

PV of Year 5 cash inflow: $300,000 ÷ (1 + 10%)^5 = $181,818.18

PV of Year 6 cash inflow: $350,000 ÷ (1 + 10%)^6 = $203,214.23

Total present value of cash inflows = $885,032.01

B/C ratio = Total present value of cash inflows ÷ Initial investment = $885,032.01 ÷ $1,000,000 = 0.885

c. To calculate the NFW, we need to find the present value of all cash inflows and subtract the initial investment.

Total present value of cash inflows:

PV of Year 1 cash inflow: $90,909.09

PV of Year 2 cash inflow: $113,636.36

PV of Year 3 cash inflow: $136,363.64

PV of Year 4 cash inflow: $159,090.91

PV of Year 5 cash inflow: $181,818.18

PV of Year 6 cash inflow: $203,214.23

Total present value of cash inflows = $885,032.01

NFW = Total present value of cash inflows - Initial investment = $885,032.01 - $1,000,000 = -$114,967.99 (negative NFW means the investment is not worthwhile)

d. To calculate the future worth of Tara's investments after 20 years, we need to find the present value of her investments today and then compound it for 20 years at a rate of 7%.

Present value of Tara's investments today:

Investment 1: $2,500

Investment 2: $1,500 ÷ (1 + 7%)^1 = $1,401.87

Investment 3: $1,600.87 ÷ (1 + 7%)^1 = $1,491.10

Investment 4: $1,700.97 ÷ (1 + 7%)^1 = $1,583.05

Investment 5: $1,802.12 ÷ (1 + 7%)^1 = $1,676.76

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Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to lock in the interest rate it pays by going long an FRA with Bank of America. The FRA specifies that Citibank will borrow at a fixed rate of 0. 03 for 6 months on $1 million in 2 years. If the 6 months LIBOR rate proves to be 0. 1. Then to settle the FRA, what is the cash flow to Citibank at the end of 2 years

Answers

The FRA between Citibank and Bank of America is a contract where Citibank agrees to borrow $1 million at a fixed rate of 0.03 for 6 months starting in 2 years. If the 6 months LIBOR rate at the end of 2 years is 0.1, then Citibank will receive a cash flow of $35000 from Bank of America to compensate for the difference between the fixed rate and the actual market rate.

To calculate the cash flow, we need to determine the settlement amount of the FRA. The settlement amount is calculated as:

Settlement Amount = Notional Amount x (Actual Rate - Agreed Rate) x (Day Count / 360)

Where:

Notional Amount = $1 million
Actual Rate = 0.1 (6 months LIBOR rate)
Agreed Rate = 0.03 (Fixed rate in the FRA contract)
Day Count = 180 (Number of days in 6 months)

Substituting the values in the formula, we get:

Settlement Amount = $1 million x (0.1 - 0.03) x (180 / 360)
Settlement Amount = $35,000

Therefore, Citibank will receive $35,000 from Bank of America at the end of 2 years to settle the FRA. This cash flow will help Citibank to lock in the interest rate and mitigate the risk of fluctuating interest rates in the market.

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Suppose that the city council of Hoboken is considering a restrictive ordinance that will reduce the number of liquor licenses in the city. If the ordinance is passed, the maximum number of beverages that can be served any night will be capped at 4,500. What will be the resulting market price and quantity

Answers

The resulting market price and quantity will depend on the demand and supply of liquor licenses in Hoboken.

The market price and output will be determined by Hoboken's supply and demand for liquor licences. The market price of liquor licences will increase and the availability will drop if there is a greater demand than supply. In contrast, the market price will decrease and the quantity will rise if there is a bigger supply of licenses than there is a demand for them.

The market price and quantity of liquor licenses also depend on other factors, such as the laws and regulations governing the sale and distribution of alcohol in Hoboken, the size of the local market for alcoholic beverages, and the availability of other types of alcohol licenses (e.g., beer and wine) in the area.

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Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes made interest-only payments on the loan in years 1 and 2. (Leave no answer blank. Enter zero if applicable. ) Problem 14-46 Part a a. Assuming year 1 is 2017, how much interest would the Sanchezes deduct in year 2?

Answers

Sanchezes would be able to deduct $48,000 interest in 2 years.

Based on the information provided, Javier and Anita Sanchez purchased a home for $1,000,000, paying a $200,000 down payment and borrowing $800,000 with a 6% loan. They made interest-only payments in years 1 and 2.

To determine how much interest the Sanchezes would deduct in year 2, we need to calculate the interest they paid on their loan for that year. Since their loan is a 6% interest-only loan, we can calculate the interest as follows:

1. Find the annual interest rate: 6% of the borrowed amount
2. Calculate the interest for year 2: 0.06 * $800,000

Now, let's perform these calculations:

1. 0.06 * $800,000 = $48,000

So, the Sanchezes paid $48,000 in interest during year 2. Assuming there are no changes in tax laws, the Sanchezes would be able to deduct the full $48,000 in interest in year 2.

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Question 2 of 20
Noah describes the investment he made as a cross between a stock and a
bond. It offers a high rate of return but is more stable than typical stocks.
This kind of investment is called a
O A. dividend stock
B. government bond
C. preferred stock
D. prospectus

Answers

Noah describes the investment he made as a cross between a stock and a bond. It offers a high rate of return but is more stable than typical stocks. This kind of investment is called a preferred stock. The correct option is c.

Preferred stocks are sometimes called hybrid securities. Preferred stocks are equity securities that share many characteristics with debt instruments. Preferred stock is attractive as it offers higher fixed-income payments than bonds with a lower investment per share. Preferred stock often has a callable feature that allows the issuing corporation to forcibly cancel the outstanding shares for cash.

Corporations that receive dividends on preferred stock can deduct 50% to 65% of the income from their corporate taxes.

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An appropriate fiscal policy for a severe recession is.

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An appropriate fiscal policy for a severe recession is to implement a combination of government spending increases and tax cuts.

The objective is to stimulate aggregate demand, boost consumer and business confidence, and promote economic growth. By increasing government spending on infrastructure, education, and healthcare, the government can create jobs and encourage private investment. Tax cuts can increase disposable income, incentivize consumer spending, and reduce the burden on businesses.

In addition, the government can also implement targeted stimulus measures, such as direct payments to individuals and businesses, to provide immediate relief and support to those most affected by the recession. A comprehensive fiscal policy response requires careful balancing of short-term relief and long-term sustainability, as well as consideration of distributional effects across income groups and sectors of the economy.

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A magazine provided results from a poll of 500 adults who were asked to identify their favorite pie. Among the 500 ​respondents, 12 ​% chose chocolate​ pie, and the margin of error was given as plus or minus 5 percentage points. What values do Modify

Answers

Based on the poll results and the margin of error, we can estimate that the true number of adults who prefer chocolate pie lies between 35 and 85 respondents, or 7% to 17% of the total respondents.

Let's break down the information provided and analyze the results of the poll.

The poll included 500 adult respondents. Among them, 12% chose chocolate pie as their favorite. With a margin of error of ±5 percentage points, we can determine the range within which the true proportion of adults who prefer chocolate pie lies.

Step 1: Calculate the number of respondents who chose chocolate pie.
12% of 500 = 0.12 x 500 = 60 respondents

Step 2: Determine the lower and upper bounds of the margin of error.
Lower Bound: 12% - 5% = 7%
Upper Bound: 12% + 5% = 17%

Step 3: Convert the percentages to actual numbers of respondents.
Lower Bound: 7% of 500 = 0.07 x 500 = 35 respondents
Upper Bound: 17% of 500 = 0.17 x 500 = 85 respondents

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Seth deposits X in an account today in order to fund his retirement. He would like to receive payments of 50 per year, in real terms, at the end of each year for a total of 12 years, with the first payment occurring seven years from now. The inflation rate will be 0. 0% for the next six years and 1. 2% per annum thereafter. The annual effective rate of return is 6. 3%. Calculate X

Answers

Seth needs to deposit $455.99 today to fund his retirement when The annual effective rate of return is 6.3%.

This problem involves calculating the present value of an annuity with a delayed first payment and real payments.

The first step is to calculate the real interest rate by adjusting the nominal rate for inflation using the Fisher equation. The real interest rate for the first six years is 6.3% - 0.0% = 6.3%, and for the subsequent six years, it is 6.3% - 1.2% = 5.1%. The present value of the real annuity is

PV = 50/(1+0.063)⁷ + 50/(1+0.051)⁸ + ... + 50/(1+0.051)¹²

Simplifying this expression yields

PV = 50 * [1/(1+0.063)⁷ + 1/(1+0.051)⁸ + ... + 1/(1+0.051)¹²]

Using a financial calculator or spreadsheet software, the present value of this annuity is approximately $455.99. Therefore, Seth should deposit $455.99 today to fund his retirement.

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The grouping of related activities into units is called______.a. coordinationb. division of laborc. unity of command and directiond. departmentalization

Answers

The grouping of related activities into units is called departmentalization.

Departmentalization is the process of grouping activities or tasks into units based on their function, product, customer, process or geographic location. It is a fundamental element of organizational design and involves creating specialized units within a larger organization, each with its own set of responsibilities and objectives.

The choice of departmentalization depends on various factors such as the size and complexity of the organization, the nature of its products or services, and the markets it serves. Effective departmentalization can improve organizational efficiency, facilitate communication and coordination, and enhance the organization's ability to adapt to changing conditions.

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The age discrimination in employment act specifically outlaws hiring practices that discriminate against people:_____.
a. who are between 39-69.
b. who are under the age of 18.
c. who are 40 and over.
d. who are between 16 and 20.
e. who are younger than 18 and older than 39.

Answers

The age discrimination in employment act specifically outlaws hiring practices that discriminate against people who are 40 and over. The correct option is c.

The Age Discrimination in Employment Act (ADEA) is a federal law that specifically prohibits hiring practices that discriminate against individuals who are 40 years of age or older. The ADEA was enacted in 1967 and applies to employers with 20 or more employees, including state and local governments.

The ADEA prohibits employers from discriminating against employees or job applicants on the basis of age in any aspect of employment, including hiring, firing, promotions, pay, and job assignments.

Additionally, the ADEA prohibits retaliation against individuals who file age discrimination complaints or participate in investigations related to age discrimination.

The law was enacted to protect older workers from discrimination in the workplace, as age discrimination can have significant negative effects on employment opportunities and financial stability.

The ADEA is an important protection for older workers, as it ensures that they are not unfairly discriminated against in the hiring process and throughout their employment.

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good company prefers variable to fixed rate debt. bad company prefers fixed to variable rate debt. assume that good and bad companies could issue bonds as follows: given this information: a. an interest rate swap will probably not be advantageous to good company because it can issue both fixed and variable debt at more attractive rates than bad company b. an interest rate swap attractive to both parties could result if good company agreed to provide bad company with variable rate payments at libor 1 percent in exchange for fixed rate payments of 10.5 percent. c. an interest rate swap attractive to both parties could result if bad company agreed to provide good company with variable rate payments at libor 1 percent in exchange for fixed rate payments of 10.5 percents. d. none of the above.

Answers

Option (B). An interest rate swap attractive to both parties could result if good company agreed to provide bad company with variable rate payments at LIBOR 1 percent in exchange for fixed rate payments of 10.5 percent.

         An interest rate swap is a contract in which two parties agree to exchange one stream of future interest payments for another, based on a specified principal amount.

This is because good company can issue fixed-rate debt at 9 percent and variable-rate debt at LIBOR - 0.5 percent, while bad company can issue fixed-rate debt at 11 percent and variable-rate debt at LIBOR + 1 percent. Therefore, good company has a comparative advantage in issuing fixed-rate debt and bad company has a comparative advantage in issuing variable-rate debt.

             By entering into an interest rate swap, good company can effectively borrow at a floating rate of LIBOR - 0.5 percent + 1 percent = LIBOR + 0.5 percent, which is lower than its original floating rate of LIBOR + 1 percent. Similarly, bad company can effectively borrow at a fixed rate of 11 percent - 0.5 percent = 10.5 percent, which is lower than its original fixed rate of 11 percent.

            The net benefit of the swap is 0.5 percent of the principal amount, which can be shared between the two parties according to their negotiation.

The other options are not suitable because:

- A:  Because it can lower its borrowing cost by swapping its fixed-rate payments for variable-rate payments from bad company.

- C: Because this would imply that bad company is paying more than its original borrowing cost and good company is receiving less than its original borrowing cost.

- D: Because option B is correct.

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on january 1, year 1, hardy company had a balance of $118,500 in its common stock account. during year 1, hardy paid $21,800 to purchase treasury stock. treasury stock is accounted for using the cost method. the balance in the common stock account on december 31, year 1, was $133,500. assume that the common stock is no par stock. required a. determine the cash inflow from the issue of common stock.

Answers

If during year 1, hardy paid $21,800 to purchase treasury stock. treasury stock is accounted for using the cost method, the cash inflow from the issue of common stock is $118,500.

The cash inflow from the issue of common stock is the amount of money received by the company when it initially issued the common stock. In this case, we are given the beginning balance of the common stock account on January 1, Year 1, which is $118,500. This amount represents the total cash inflow from the issuance of common stock up to that point.

It is important to note that the purchase of treasury stock does not affect the cash inflow from the issue of common stock, as treasury stock represents shares that were previously issued and repurchased by the company. The cost of treasury stock is recorded as a reduction of equity, not as a cash outflow.

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The secondary market for corporate stock is closely watched because stock market movements are sometimes seen as

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Due to the perception that stock market trends may be used to forecast future economic activity, the secondary market for company shares is frequently monitored.

The secondary market, which is similar to stock exchanges, is where investors purchase and sell securities from other investors. For instance, if you wanted to purchase Apple shares, you would do it via investors who already held it, rather than directly from Apple. Investors trade with one another rather than the issuing business in secondary markets.

The secondary market moves securities' prices in the direction of their true worth through a huge network of separate but related exchanges. The two main categories of secondary markets are over-the-counter marketplaces and stock exchanges. Stock exchanges are centralised marketplaces where trading in securities occurs without any interaction between the buyer and seller.

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What bankruptcy provision has the bank chosen?



Daniel’s company suffers from losses and eventually files for bankruptcy. Since Daniel’s company deals in artifacts, the bank decides to opt for the


(BLANK) provision for bankruptcy. Through this provision, the company decides to auction the goods and recover a portion of the debt

Answers

The bank has chosen the liquidation provision for bankruptcy.

What bankruptcy provision did the bank choose for the company?

The bank opted for liquidation provision for Daniel's artifact company which involves the sale of all assets to pay off creditors. In this case, the company will auction off its artifacts to recover some of the debt owed to the bank.

The provision is often used when a company is unable to restructure its operations and is no longer viable. While the provision may result in a lower recovery for creditors compared to other provisions, it allows for a quick resolution of the bankruptcy proceedings.

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dover company began operations in 2020 and determined its ending inventory at cost and at lcnrv at december 31, 2020, and december 31, 2021. this information is presented below. 00cost00 net realizable value 12/31/20 $346,000 $322,000000 12/31/21 410,000 390,000000 instructions a. prepare the journal entries required at december 31, 2020, and december 31, 2021, assuming inventory is recorded at lcnrv and a perpetual inventory system using the cost-of-goods-sold method. b. prepare journal entries required at december 31, 2020, and december 31, 2021, assuming inventory is recorded at lcnrv and a perpetual system using the loss method. c. which of the two methods above provides the higher net income in each year?

Answers

a) Journal entry for December 31, 2020 is inventory loss is $24,000, Cr. Inventory $24,000. No journal entry is required for December 31, 2021.

b)  Journal entry for December 31, 2020 is inventory loss is $24,000, Cr. Inventory $24,000.  Journal entry for December 31, 2021 is inventory loss is $20,000, Cr. Inventory $20,000.

c) The cost-of-goods-sold method provides a higher net income compared to the loss method.

a. At December 31, 2020:

Inventory Loss: $24,000 ($346,000 - $322,000)

Inventory write-down:

Dr. Cost of Goods Sold $24,000

Cr. Inventory $24,000

At December 31, 2021:

No journal entry is required as the net realizable value is higher than the cost of inventory.

b. At December 31, 2020:

Inventory Loss is  $24,000 ($346,000 - $322,000)

Inventory write-down is written as,

Dr. Loss Due to Market Decline $24,000

Cr. Inventory $24,000

At December 31, 2021:

Inventory Recovery is  $20,000 ($390,000 - $370,000)

Inventory write-up is recorded as,

Dr. Inventory $20,000

Cr. Loss Due to Market Decline $20,000

c. In each year, the cost-of-goods-sold method provides a higher net income compared to the loss method. This is because the cost-of-goods-sold method recognizes the loss immediately, reducing the inventory and increasing the cost of goods sold.

In contrast, the loss method spreads the loss over multiple periods, resulting in a lower cost of goods sold and a higher net income in the current period.

However, it should be noted that the loss method provides a more conservative approach to inventory valuation as it spreads the loss over multiple periods, rather than recognizing it immediately.

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Company X provides retailers with products for left-handed consumers. X buys products from a variety of manufacturers and stores the merchandise in its facilities until purchased by small retailers. Company X is an example of:a. Manufacturerb. Wholesalerc. Broker or agentsd. Retailer

Answers

Company X is a b) wholesaler.

Company X is not a manufacturer because it does not produce the left-handed products themselves. Instead, it buys the products from various manufacturers. It is not a broker or agent because it takes possession of the merchandise and stores it in its own facilities.

Finally, it is not a retailer because it does not sell the products directly to consumers. Instead, Company X sells the products to small retailers who will then sell the products to the end consumer.

Therefore, Company X fits the definition of a wholesaler - a business that purchases goods in large quantities from manufacturers and sells them to retailers.

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What is value engineering?



engineering products that are not meant to be replaced but have a high cost




substituting low-cost components with high-quality components that still meet the product's lifetime duration and basic purpose




substituting high-quality components with low-cost components that still meet the product's lifetime duration and basic purpose

Answers

Value engineering is the process of substituting components, materials, and processes with less expensive alternatives that still meet the product's performance requirements and quality standards. This is typically done to reduce costs without sacrificing quality, reliability, or functionality. Therefore, the correct option is:

substituting high-quality components with low-cost components that still meet the product's lifetime duration and basic purpose.

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On November 2, 2018, a U. S. -based company with the $US as its functional currency entered into a 90-day futures contract to purchase 90,000 Swiss francs when the contract quote was $1. 10. The purchase was for speculation in price movement. The following exchange rates existed during the contract period: 30 Day FuturesSpot Rate November 2, 2018$1. 04$1. 05 December 31, 2018$1. 06$1. 08 January 31, 2019$1. 07$1. 09 What amount should the U. S. -based company report as foreign currency exchange loss in its income statement for the year ended December 31, 2018

Answers

Answer: $3,000

Explanation: The US-based company should report a foreign currency exchange loss of $3,000 on its income statement for the year ended December 31, 2018.

Here's how to calculate it:

- The company entered into a 90-day futures contract to purchase 90,000 Swiss Francs on November 2, 2018, when the contract quote was $1.10.

- The company was speculating on the price movement of the Swiss Franc.

- There were three exchange rates that existed during the contract:

 - 30-day future spot rate on November 2, 2018, was $0.041

 - 60-day future spot rate on December 2, 2018, was $0.051

 - 90-day future spot rate on January 31, 2019, was $0.071

- The company's contract expired on January 31, 2019, which means that it had to purchase the Swiss Francs at the prevailing spot rate on that day.

- To calculate the foreign currency exchange loss, we need to compare the contract rate with the prevailing spot rate on January 31, 2019.

- The contract rate was $1.10, which means that the company agreed to purchase 90,000 Swiss Francs for $99,000.

- The prevailing spot rate on January 31, 2019, was $0.071, which means that the company had to pay $6,390 to purchase the 90,000 Swiss Francs.

- The difference between these two amounts is the foreign currency exchange loss: $99,000 - $6,390 = $92,610.

- However, the company only held the contract for 90 days, which means that it only held the contract during November and December 2018.

- To calculate the foreign currency exchange loss for the year ended December 31, 2018, we need to calculate the difference between the contract rate and the spot rate on December 2, 2018, which is $1.10 - $0.051 = $1.049.

- The company agreed to purchase 90,000 Swiss Francs for $99,000, so the notional amount of the contract was $99,000.

- The foreign currency exchange loss for the year ended December 31, 2018, is the notional amount of the contract times the difference between the contract rate and the spot rate on December 2, 2018

blunt county needs $700,000 from property tax to meet its budget. the total value of assessed property in blunt is $110,000,000. what is the tax rate of blunt? (round to the nearest ten thousandth. express the rate in mills.)

Answers

If the total value of assessed property in blunt is $110,000,000, the tax rate for Blunt county is 0.00636 mills.

To calculate the tax rate of Blunt county, we need to divide the amount needed from property tax ($700,000) by the total assessed value of property in Blunt county ($110,000,000). We can then convert this result into mills, which is a common way of expressing tax rates.

Tax rate = ($700,000 / $110,000,000) * 1,000

Tax rate = 0.00636 mills

This means that property owners in Blunt county will be required to pay $0.00636 for every dollar of assessed value of their property. For example, a property with an assessed value of $100,000 would be taxed at a rate of $636 per year.

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if a licensee gives tenants rent reductions whenever they refer new tenants, is this a violation of arizona law?

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Yes. if a licensee gives tenants rent reductions whenever they refer new tenants, is this a violation of arizona law

How is this a violation of the law

It is possible that providing tenants rent reductions in exchange for referring new tenants could be a breach of Arizona law.

Under Arizona Revised Statutes § 33-1314, landlords are precluded from billing their tenants fees and deposits that have not been explicitly allowed under the rental agreement, or authorized by law. Thus, if the rental agreement does not expressly permit discounts on rent due to referrals, it is likely that such an act would contravene said statute.

Moreover, pursuant to Arizona Revised Statutes § 33-1313, retaliating against a tenant who upholds their legal and contractual rights is prohibited.

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On January 1, 2019, Caswell Company signs a 10-year cancelable (at the option of either party) agreement to lease a storage building from Wake Company. The following information pertains to this lease agreement: 1. The agreement requires rental payments of $100,000 at the beginning of each year. 2. The cost and fair value of the building on January 1, 2019, is $2 million. The storage building has not been specialized for Caswell. 3. The building has an estimated economic life of 50 years, with no residual value. Caswell depreciates similar buildings according to the straight-line method. 4. The lease does not contain a renewable option clause. At the termination of the lease, the building reverts to the lessor. 5. Caswell’s incremental borrowing rate is 14% per year. Wake set the annual rental to ensure a 16% rate of return (the loss in service value anticipated for the term of the lease). Caswell knows the implicit interest rate. 6. Executory costs of $7,000 annually, related to taxes on the property, are paid by Caswell directly to the taxing authority on Dec. 31 of each year. Required: 1. Determine what type of lease this is for the lessee. 2. Prepare appropriate journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019 and 2020

Answers

The journal entry to record the initial recognition of the lease on January 1, 2019, would be:

Debit Right-of-Use Asset $751,424

Credit Lease Liability $751,424

On January 1, 2019, the first rental payment would be due and would be recorded with the following journal entry:

Debit Lease Liability $89,476

Debit Executory Costs Expense $7,000

Credit Cash $96,476

This represents the present value of the lease payments over the ten-year lease term.

Moving on to the journal entries for the years 2019 and 2020, we know that Caswell is required to make annual rental payments of $100,000 at the beginning of each year.

The $89,476 represents the portion of the lease liability that relates to the first year's rental payment, while the $7,000 represents the annual executory costs related to taxes on the property. The $96,476 credit to cash represents the actual cash payment made by Caswell.

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Decision to Discontinue a Product:


On the basis of the following data, the general manager of Featherweight Shoes Inc. Decided to discontinue Children's Shoes because it reduced income from operations by $17,000.


Featherweight Shoes Inc.


Product-Line Income Statement


For the Year Ended April 30, 20Y8


Children's Shoes Men's Shoes Women's Shoes Total


Sales $235,000 $300,000 $500,000 $1,035,000


---------------------- ----------------- -------------------- ---------------


Cost of Goods Sold:


Variable Costs $130,000 $150,000 $220,000 $500,000


Fixed Costs $41,000 $60,000 $120,000 $221,000


---------------------- ----------------- -------------------- ---------------


Total Cost of Goods Sold $171,000 $210,000 $340,000 $721,000


---------------------- ----------------- -------------------- ---------------


Gross Profit $64,000 $90,000 $160,000 $314,000


---------------------- ----------------- -------------------- ---------------


Selling and Administrative Expenses:


Variable Selling and Admin. Expenses $46,000 $45,000 $95,000 $186,000


Fixed Selling and Admin, Expenses $35,000 $20,000 $25,000 $80,000


---------------------- ----------------- -------------------- ---------------


Total Selling and Admin. Expenses $81,000 $65,000 $120,000 $266,000


---------------------- ----------------- -------------------- ---------------


Income (Loss) from Operations $(17,000) $25,000 $40,000 $48,000


============= ========== ============ =========


Required:


1. Prepare a differential analysis to determine the flaw in the general manager's decision.


If an amount is zero, enter "0". Use minus sign to indicate a loss.


Differential Analysis


Continue (Alternative 1) or (Discontinue (Alternative 2) Children's Shoes


Continue Children's Shoes Discontinue Children's Shoes Differential Effect on Income


(Alternative 1) (Alternative 2) (Alternative 2)


Revenues $ $ $


Costs:


Variable Cost of Goods Sold


Variable Selling and Admin. Expenses


Fixed Costs


--------------------------------- ------------------------------------ ----------------------------------


Income (Loss) $ $ $


==================== ====================== =====================


2. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance?

Answers

a) If the fixed costs would not be materially affected by the discontinuance, then we can deduct the $41,000 from the differential effect on income to arrive at a net differential effect on income of -$64,000.

b) The flaw in the general manager's decision is that the reduction in income from discontinuing Children's Shoes is $64,000 outweighs the savings in variable costs is $130,000.

Looking at the Product-Line Income Statement, we see that Children's Shoes generated $235,000 in sales, and their variable costs (costs that vary with production and sales volume) amounted to $130,000. If Children's Shoes are discontinued, we would lose the $235,000 in revenue, but we would also save $130,000 in variable costs. This results in a differential effect on income of

=> -$105,000 ($235,000 - $130,000).

However, we must also consider the fixed costs of $41,000 associated with Children's Shoes. If the fixed costs would not be materially affected by the discontinuance, then we can deduct the $41,000 from the differential effect on income to arrive at a net differential effect on income of

=> -$64,000 (-$105,000 - $41,000).

This means that discontinuing Children's Shoes would reduce income from operations by $64,000.

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Develop a value chain that depicts six to nine activities that makes Fowler’s Farm competitive.


Evaluate the competitive advantage each activity confers upon the company.


Justify which activity you believe is the most valuable for company growth.


Justify your choice of the activity that you believe would benefit most from optimization or alteration.


Recommend a change that you would make to your selected activity to optimize it and support your assertion quantitatively. Make sure to include any assumptions or data values that need to be made to support your recommendation

Answers

Fowler's Farm can be competitive in the market by following a value chain that involves activities like seed selection, planting, cultivation, harvesting, packaging, distribution, marketing, and sales.

Each of these activities contributes to the competitive advantage of the company. Seed selection and cultivation ensure the quality of the produce, while packaging and distribution guarantee that the products reach the market fresh and in good condition. Marketing and sales activities increase brand awareness and customer reach, leading to increased sales and revenue.

Out of these activities, I believe that marketing and sales are the most valuable for the company's growth as they directly impact the revenue. The activity that I think would benefit the most from optimization or alteration is distribution. Improving distribution efficiency can help in reducing transportation costs and ensure timely delivery to the market, leading to increased sales.

To optimize distribution, I would recommend investing in a GPS-enabled tracking system to monitor the movement of the vehicles and optimize routes for timely delivery. Assuming an investment of $100,000 in this system, I estimate a reduction of $20,000 per year in transportation costs, leading to a 20% increase in revenue. This optimization can help the company to gain a competitive advantage in the market and increase profitability.

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Write a summary of the functions area of each department:

- administration
- IT support
- marketing

Answers

The functions of each department are as follows:

Administration: The administration department is responsible for managing the day-to-day operations of the organization. This includes tasks such as managing budgets, overseeing personnel, and ensuring compliance with regulations and policies.

IT support: The IT support department is responsible for providing technical support to the organization. This includes tasks such as troubleshooting computer problems, installing software and hardware, and maintaining the organization's network and computer systems.

Marketing: The marketing department is responsible for promoting the organization's products or services to potential customers. This includes tasks such as market research, advertising, public relations, and sales. The marketing department works to develop and implement marketing strategies that will help the organization achieve its goals and objectives.

CCL is a container shipping company that provides ocean transportation services between Hong Kong and Rotterdam. The round trip transit time for this route, including the stoppage time at multiple ports along the way, is 8 weeks. After completing a round trip, a vessel spends a negligible amount of time in Hong Kong before going for the next trip. The company offers fixed day weekly service, with one vessel departing Hong Kong every Wednesday. How many vessels does CCL need for the Hong Kong - Rotterdam route? (Choose the option that is closest to the correct answer.)
Group of answer choices
6 vessels
7 vessels
8 vessels
9 vessels
10 vessels
12 vessels

Answers

We need to calculate the total time taken by a vessel to complete one round trip and the frequency of service offered by the company. Then we can find out the number of vessels required for the Hong Kong - Rotterdam route. So, the correct answer is 6 vessels.

How many vessels does CCL need for the Hong Kong - Rotterdam route?

The round trip transit time for the Hong Kong - Rotterdam route is 8 weeks, and the company offers fixed day weekly service, with one vessel departing Hong Kong every Wednesday. Therefore, in 8 weeks, 8 voyages will take place, as there are 7 days in a week and one vessel departs every week. So, one vessel takes 8 weeks to complete one round trip.

Therefore, to have continuous weekly service, we need at least two vessels, as while one vessel is on the trip, the other vessel can depart on the next Wednesday. Therefore, CCL needs at least two vessels for the Hong Kong - Rotterdam route, but the closest option is 6 vessels. So, the correct answer is 6 vessels.

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Uppose the market demand function (expressed in dollars) for a normal product is

P = 80 – q, and the marginal cost (in dollars) of producing it is MC = 1q, where P is the

price of the product and q is the quantity demanded and/or supplied. A. B. C. D. 3. 4. 5. Suppose you were asked to comment on a proposed policy to control oil spills. Since the

average cost of an oil spill has been computed as $X, the proposed policy would require

any firm responsible for a spill immediately to pay the government $X. Is this likely to

result in the efficient amount of precaution against oil spills? Why or why not?

"In environmental liability cases, courts have some discretion regarding the magnitude

of compensation polluters should be forced to pay for the environmental incidents they

cause. In general, however, the larger the required payments the better. " Discuss. Label each of the following propositions as descriptive or normative and defend your

choice:

a. B. C. D. E. 6. How much would be supplied by a competitive market?

Compute the consumer surplus and producer surplus. Show that their sum is

maximized. Compute the consumer surplus and the producer surplus assuming this same product

was supplied by a monopoly. (Hint: The marginal revenue curve has twice the slope

of the demand curve. )

Show that, when this market is controlled by a monopoly, producer surplus is larger,

consumer surplus is smaller, and the sum of the two surpluses is smaller than when

the market is controlled by competitive industry

Answers

The consumer surplus is 800 and the producer surplus is 1560. The monopoly results in a larger producer surplus and a smaller consumer surplus is 2360, leading to a smaller total surplus compared to a competitive industry.

In a monopoly, the price is determined by equating marginal revenue (MR) with marginal cost (MC). Since the marginal revenue is twice the slope of the demand curve,

MR = 80 - 2q.

Setting MR = MC = q gives the monopolist's output as q = 40.

Substituting this output into the demand function, we get the monopoly price as

P = 80 - 40 = 40.

Consumer surplus is the area between the demand curve and the price line up to the quantity demanded, which is

(1/2) x (80 - 40) x 40 = 800.

Producer surplus is the difference between the price and the marginal cost times the quantity supplied, which is

(40 - 1) x 40 = 1560.

Under perfect competition, the price is determined by the intersection of demand and supply, which gives a price of P = MC = 1q.

The competitive output is q = 40, the same as the monopolist's output. Consumer surplus is the same as before, but producer surplus is

(40 - 1) x 40 = 1560,

which is the same as the monopolist's producer surplus. The total surplus is the sum of consumer and producer surplus, which is

(1/2) x (80 - 1) x 40 = 1560 + 800 = 2360,

which is greater than the total surplus under monopoly. Therefore, the monopolist's control over the market leads to a reduction in consumer surplus and total surplus, while increasing producer surplus.

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--The given question is incomplete, the complete question is given

" Suppose the market demand function (expressed in dollars) for a normal product is P=80-q, and the marginal cost (in dollars) of producing it is MC=1q, where P is the price of the product and q is the quantity demanded and/or supplied.

(a) Compute the consumer surplus and the producer surplus assuming this same product was supplied by a monopoly. (Hint: The marginal revenue curve has twice the slope of the demand curve)

(b) Show that when this market is controlled by a monopoly, producer surplus is larger, consumer surplus is smaller, and the sum of the two surpluses is smaller than when the market is controlled by competitive industry."--

Born On The 4th Of Supply Industrial Goods paid a quarterly dividend of $3. 5 per share last quarter. Today, the company announced that future dividends will be increasing by 0. 6% quarterly. If you require a 8. 5% annual rate of return, how much, to the nearest cent, are you willing to pay to purchase one share of this stock today?

Answers

Based on the constant growth model, the value of one share of stock of Born On The 4th Of Supply Industrial Goods with a quarterly dividend of $3.5 and a 0.6% quarterly dividend increase, with an 8.5% annual rate of return requirement, would be $44.94.

To calculate the value of a share of stock using the dividend discount model, we can use the formula:

V = D / (r - g)

where:

V = the value of the stock

D = the expected future dividend

r = the required rate of return

g = the expected growth rate of the dividend

In this case, the current dividend is $3.5 per share, and the quarterly growth rate is 0.6%. We can convert this to an annual growth rate by multiplying by 4:

g = 4 * 0.6% = 2.4%

The required rate of return is 8.5%. We can convert this to a quarterly rate by dividing by 4:

r = 8.5% / 4 = 2.125%

Now we can use the formula to calculate the value of the stock:

V = $3.5 / (2.125% - 2.4%) = $3.5 / (-0.275%) = -$1,272.73

This negative value doesn't make sense, so we need to check our calculations. The problem is that the growth rate is higher than the required rate of return, which means the formula doesn't work in this case. When the growth rate is higher than the required rate of return, we need to use the constant growth model instead:

V = D1 / (r - g)

where:

D1 = the next expected dividend

g = the expected growth rate of the dividend

r = the required rate of return - the growth rate

To use this model, we need to calculate the next expected dividend. To do this, we can multiply the current dividend by (1 + g) to get the next quarter's dividend:

D1 = $3.5 * (1 + 0.6%) = $3.522

Now we can use the constant growth model to calculate the value of the stock:

V = $3.522 / (8.5% - 0.6%) = $44.94

Therefore, you would be willing to pay $44.94 to purchase one share of this stock today.

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Read the case given and answer the questions:
Nawal was the first of her family to go to college and, after working in a reputed organization for a few years, she got into her first-choice graduate program. During her first semester, Nawal was seen as mature, professional, and well-organized. Concerns emerged during the spring semester; she seemed distracted when on campus and was absent from organization more days than she was present. She was working on a paper, but progress was slow, and in March Nawal failed to turn in a draft on the date promised. Her advisor Dr. Hamed assumed that more structure was needed, so she began to set very explicit expectations for products with specific deadlines attached. During their meetings, Nawal was enthusiastic about her projects and eagerly promised to get the work done. However, the pattern of failing to deliver kept repeating itself. Finally, after an extended stretch when Nawal was absent from the organization and had missed a deadline for a draft, Dr. Hamed called her in to ask if she was serious about her work. Nawal teared up and revealed that her mother was seriously ill, and she had been driving the three hours back home every weekend for the last several months to help her family. She had thought it inappropriate to mention her family crisis, not wanting to acknowledge that her personal life was interfering with her graduate studies. She asked Dr. Hamed if she should withdraw from the program.
Assignment Questions: Marks: 10
Q1. What are the main themes raised in this case?(2Marks)
Q2. What is the best course of action for this student for the immediate future? (2Marks)
Q3. How can organization develop successful mentoring programs to help its work force? (3Marks)
Q4. What policy changes might the department implement to avoid a repeat of the situation in the future, with another student?(3Marks)

Answers

1. The main themes raised in this case are communication, work-life balance, and the impact of personal issues on professional performance.

2. The best course of action for Nawal in the immediate future is to discuss her situation with her advisor and explore potential options.

3. Organizations can develop successful mentoring programs by identifying suitable mentors, expressing expectations, offering training, scheduling regular check-ins, and encouraging communication.

4. The policy changes can be implemented including creating personal crises reporting system, encouraging communication, offering mental health and wellness resources, offering flexible schedule, promoting culture of empathy.

1. The main themes raised in this case are the challenges faced by first-generation college students, the importance of communication and support in academic and personal life, and the need for empathy and understanding from advisors and faculty members. It elaborates on the importance of work-life balance and effects of personal issues on performance.

2.  The best course of action for this student for the immediate future would be to discuss her situation with her advisor and explore options for support and accommodations, such as request a temporary leave of absence or an extension on her deadlines to accommodate her personal circumstances. She may also benefit from seeking counseling or other forms of emotional support to cope with the stress and challenges of her personal situation.

3. Organizations can develop successful mentoring programs by:

Identifying and matching mentors and mentees based on their needs and goals.Providing clear expectations and guidelines for the mentoring relationship.Offering training and resources to both mentors and mentees.Scheduling regular check-ins to monitor progress and address any issues.Encouraging open communication and feedback between mentors and mentees.

4. To avoid a repeat of this situation in the future, the department could implement policy changes such as:

Creating a system for students to report personal crises or difficulties that may impact their academic performance, and providing support and accommodations accordingly.  Encouraging open communication and regular check-ins between advisors and students to identify and address any issues or challenges. Offering resources and support for mental health and wellness, such as counseling services or workshops on stress management. Providing more flexibility and options for course schedules, assignments, and deadlines to accommodate different student needs and circumstances. Promoting a culture of empathy and understanding among faculty, staff, and students to foster a supportive and inclusive learning environment.

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many states are now imposing severance taxes on resources being extracted in their states. in order to understand the effect of these on the allocation of the mineral over time, assume a stable demand curve. how would the competitive allocation of an increasing marginal-cost depletable resource be affected by the imposition of a per-unit tax (for example, $4 a ton) if there exists a constant-marginal-cost substitute? comparing the allocation without a tax to one with a tax, in general terms what are the differences in cumulative amounts extracted and the price paths?

Answers

The imposition of a per-unit tax on an increasing marginal-cost depletable resource lead to a reduction in the cumulative amount of the resource extracted over time, a higher market price for the resource.

The cumulative amount of the substitute extracted would increase as the tax would encourage its substitution.

The imposition of a per-unit tax on an increasing marginal-cost depletable resource would affect the competitive allocation of the resource over time.

In general, a tax would increase the marginal cost of production for the resource, leading to a decrease in the supply of the resource. This reduction in supply would result in a higher market price for the resource and a lower cumulative amount of the resource extracted over time.

If there exists a constant-marginal-cost substitute for the depletable resource, the tax would encourage the substitution of the substitute for the depletable resource. As a result, the demand for the substitute would increase, leading to an increase in its price.

This increase in the price of the substitute would offset the increase in the price of the depletable resource, resulting in a smaller net change in the market price.

In terms of the cumulative amount of the resource extracted, the tax would reduce the cumulative amount of the depletable resource extracted over time, as the higher marginal cost of production would discourage extraction.

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Which term describes values applied through achievement of the three paradigms? O Diversity audits O Skills-based training O Diversity principles O Awareness training

Answers

The correct answer is option C)  Diversity principles.

The term that describes values applied through the achievement of the three paradigms is Diversity principles.

What are Diversity principles?

Diversity principles are the values that apply to the three paradigms of an organization, including affirmative action, diversity awareness training, and diversity audits. It is a core aspect of diversity management that emphasizes equal opportunities and benefits to all employees, regardless of their differences.

Diversity principles are a fundamental part of diversity management and assist in creating an environment of acceptance and inclusivity. By providing equal opportunities to all staff members, an organization can increase engagement, employee satisfaction, and productivity.

The following are some essential diversity principles:

Equal treatment and opportunities for all employees regardless of their gender, race, religion, age, disability, and other individual differences.Inclusivity and the promotion of a safe and supportive working environment for all employees.Recognition and respect for the different values, traditions, and beliefs held by employees.Multiculturalism and acceptance of differences a significant sources of strength, innovation, and creativity in the workplace.

As an organization adopts these principles, it improves diversity management and promotes equity, justice, and social responsibility in the workplace.

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