While preparing its year 3 financial statements, Dek Corp. discovered computational errors in its year 2 and year 1 depreciation expense. These errors resulted in overstatement of each year’s income by $25,000, net of income taxes. The following amounts were reported in the previously issued financial statements:

Year 2 Year 1
Retained earnings, 1/1 $700,000 $500,000
Net income 150,000 200,000
Retained earnings, 12/31 $850,000 $700,000

Dek’s year 3 income is correctly reported at $180,000. Which of the following amounts should be adjusted to retained earnings and presented for net income in Dek’s year 3 and year 2 comparative financial statements?

Year Retained earnings Net income
year 2 --    150,000
year 3    ($50,000)      180,000
year 2 ($50,000) $150,000
year 3    --      180,000
year 2 ($50,000) $125,000
year 3    --      180,000
year 2 -- $125,000
year 3    --      180,000

Answers

Answer 1

Answer:

Dek Corp.

The amounts should be adjusted to retained earnings and presented for net income in Dek’s year 3 and year 2 comparative financial statements are:

Year    Retained earnings  Net income

year 2       ($50,000)          $150,000

year 3           --                       180,000

Explanation:

a) Data and Calculations:

Years 1 and 2 net income overstated by $25,000 each.

                                              Year 2      Year 1

Retained earnings, 1/1      $700,000  $500,000

Net income                          150,000    200,000

Retained earnings, 12/31 $850,000  $700,000

b) With the above amounts, the retained earnings of Year 2 are adjusted by a negative $50,000 value, representing the overstated net income for years 1 and 2.  This will reduce Year 2's ending retained earnings to $800,000 ($850,000 - $50,000).  The second amount will simply state the net income for year 3 as it is.


Related Questions

According to the insurance institute for highway safety injuries the most common injury in the US due to front or rear crashes cost more than __________ billion dollars a year.

Answers

Answer:

6

Explanation:

The Insurance Institute for Highway Safety (IIHS) is known to be an independent body or organization. It is a nonprofit scientific and educational organization solely aimed to reducuction of the losses and deaths, injuries and property damage as a result from motor vehicle crashes. In US, due to front or rear crashes cost more than 6 billion dollars a year is being spent on injury.

Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $64,000, and Martin's capital balance $61,000. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 25% interest. Black will invest $35,000 in the partnership. The bonus that is granted to Black equals:

Answers

Answer:

$5,000

Explanation:

Calculation for what The bonus that is granted to Block equals:

First step is to calculate the Total Partnership Equity using this formula

Total Partnership Equity = Groh's Capital + Jackson's Capital + Block's Investment

Let plug in the formula

Total Partnership Equity = $64,000 + $61,000 + $35,000

Total Partnership Equity= $160,000

Second step is to calculate the Equity for Block

Equity for Block = $160,000 * 0.25 =

Equity for Block =$40,000

Now let calculate what Bonus to Block equals using this email formula

Bonus to Block = Block's Capital - Cash Investment

Let plug in the formula

Bonus to Block = $40,000 - $35,000

Bonus to Block= $5,000

Therefore the bonus that is granted to Block equals: $5,000

Compile a list of factors that contributed to the developement of the early Industrial revolution in the united states.

Answers

Answer:

Probably the railroad was the single most important factor that contributed to the American industrial revolution.

The railroad was essential for relocating immigrants, accessing mines in the west and expanding the country in general.

Other important factors include:

Early industrialization increased productivity, and American entrepreneurs realized that and wanted to copy that model. Several American inventions increased productivity.

That led to change from agricultural nation to industrial nation (at least in the northern states).

Businesses expanded and corporations were formed. That led to powerful monopolies.

The government itself did not intervene in the economy that much, it was worried about economic growth and the means were not something to care about.

As more immigrants arrived, markets starters to grow. Also, the government imposed high tariffs on imported goods which benefitted American producers.

Your company had a contract to renovate a large auditorium of a multinational company for $650,000. There is a flexible due date to complete the renovation. Which type of contract to sign in this case

Answers

Answer:

the options are missing:

a) Cost-plus Fee b) Time and Material c) Fixed Price d) Fixed cost-plus profit

the answer is: c) Fixed Price

Explanation:

Cost-plus Fee  contract involves a contractor being paid its building costs plus a certain fee or profit. Doesn't apply here because the price if fixed.

Time and Material

s contract are similar to cost-plus fee since the contractor is paid for labor and materials costs plus a margin during the time required to finish the construction.

Fixed cost-plus profit contract includes a bonus for good performance, which generally results from finishing early.

If you burn garbage in your backyard and the smoke damages a neighbor's house,the damage is considered an externality.The externality is the cost of the house damage paid by the neighbor (third party).A. TrueB. False

Answers

Answer:

B.

Explanation:

Micah wants a Metallica song to be playing in the background on his company’s Web site. He burns the song from a CD onto his computer and integrates it into the site. Are Micah’s actions legal?

Answers

Answer:

No; Micah still needs to pay for any intellectual property he reproduces.

Explanation:

Intellectual property theft is the act of robbing another party of their inventions and ideas. Intellectual property includes music, software, proprietary products, and trade secrets.

Taking intellectual property without paying for them is illegal.

However if the property is purchased the user can use it as they see fit.

In the given scenario Micah burns a song from a CD onto his computer and integrates it into the site.

He has initially purchased the CD so he has paid for the intellectual property. His action is not illegal and he will pay for any reproductions made

Which of the following explains why businesses often use graphics
to warn workers of dangerous situations?

Answers

Answer:

There are no options listed, but a can cite a few reasons why companies use graphic signs:

statistically, the number of work related injuries decrease as the level of safety signage increases. visual signs are extremely effective ways of communicating, and when it comes to dangerous activities, their effectiveness increases. people tend to pay more attention to graphic signs than to written signs, that is the same reason why signs and logos are placed outside a company in order to identify it.graphic signs are very easy to recognize and associate. graphic signs do not need further or complex explanations, i.e. a picture is worth more than 1,000 words.and a long list of etc.

when contracting out governmental function it is the policy of the government to utilize non-personal service contract whenever possible. personal service contracts are appropriate only in limited situations

Answers

Answer: a. Under a personal services contract, the contractor’s personnel are subject to the supervision and control that prevails in relationships between the Government and its employees.

Explanation:

A personal service contract operates as though there is an employer-employee relationship between the Government and personnel under the contractor hired for the project.

This means that the contractor's personnel will be subject to the same supervision and controls that the government puts its own employees under.

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009. The graph shows government spending as a percentage of GDP from 1990 to 2012. At its peak, government spending made up about half of GDP. 100 percent of GDP. one quarter of GDP. one tenth of GDP.

Answers

Answer:

C.  one quarter of GDP

Explanation:

edge

At the peak of the graph, U.S. government spending as a percentage of GDP was one quarter of GDP.

U.S. Spending from 1990 to 2012

Spending by the government in this time period varied in relation to the GPD. In 2001 for instance, spending was 18% of the US GDP.

This increased to a massive 25% which was a quarter of GDP in 2009. The most likely reason for this was the spending by the Obama administration to pull the U.S. from the 2008 recession.

In conclusion, option C is correct.

Find out more on U.S. government spending at https://brainly.com/question/25125137.

In anticipation of the college's athletic banquet, Lauren considered purchasing gifts for several members of the athletics club who had put a lot of time and effort into making it such a successful program. Lauren decided to buy roses for the women and a leather-bound portfolio and resume paper combination for the men. Which of the following scenarios corresponds to cross-price elasticity? A. Lauren worked overtime last week and made more money. As a result, she decided to purchase the more expensive portfolios that have the university logo on the front, and she decided to buy one more than she had originally planned. B. A local high school's prom is also the same weekend as the ceremony, so the price of roses has increased. C. Lauren cannot decide which color of roses to buy because they are all priced the same. D. The price of resume paper has decreased. Because of this, Lauren can now afford to purchase more paper and an additional portfolio and still be within her budget for gifts.

Answers

Answer: d. The price of resume paper has decreased. Because of this, Lauren can now afford to purchase more paper and an additional portfolio and still be within her budget for gifts.

Explanation:

Cross price elasticity has to do with how the quantity demanded of a particular good or service is affected by price of another different good or service which could either be a complement of the good or its substitute.

Therefore, the option that denotes a cross price elasticity based on the definition above would be the price of resume paper has decreased. Because of this, Lauren can now afford to purchase more paper and an additional portfolio and still be within her budget for gifts.

How do repetitions look in Full Verbatim?

Answers

Answer:

D

Explanation:

Its word for word exactly the same.

The repetitions are viewed in Full Verbatim as follows:

B). I sang- I sang a song.

'Full Verbatim' is characterized as the 'transcript that involves all the words or utterances used by the speaker in the same manner as it was spoken by him/her.' It doesn't involve any kind of omission or editing and consists of filler words, repetition, false starts, grammatical errors, etc.In the case of repetition, the full verbatim includes this as well using a hyphen(-) followed by the first phrase and space between the repeated phrase or sentence as mentioned above.

Thus, option B is the correct answer.

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Kuzu Company discovers in 2019 that its ending inventory at December 31, 2018, was $7,000 understated. What effect will this error have on (a) 2018 net income (b) 2019 net income (c) the combined net income for the 2 years

Answers

Answer:

Kuzu Company

Effect of understatement of ending inventory at December 31, 2018 by $7,000:

a) 2018 net income was understated by $7,000.  It should increase by $7,000

b) 2019 net income was overstated by $7,000.   It should reduce by $7,000.

c) the combined net income for the 2 years: No effect.

Explanation:

When Kuzu's ending inventory at December 31, 2018 was understated, it implies that its net income was also understated by $7,000.  This ending inventory becomes the beginning inventory for 2018. The understatement of the previous year's ending inventory (and net income) will become overstatement of the current year's net income.  However, when the two years are combined, the net income will not be affected as one understatement cancels the other overstatement.

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,100 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $720,752 in total. The ending work in process inventory in January consisted of 2,600 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead
Cost per equivalent unit $ 13.70 $4.70 $ 7.40
Required:
1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.
2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.
3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.
4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Answers

Answer:

Equivalent units of materials, labor, and overhead

Materials

Units in Ending Work in Progress (2,600 × 80%) = 2,080

Labor

Units in Ending Work in Progress (2,600 × 60%) = 1,560

Overhead

Units in Ending Work in Progress (2,600 × 60%) = 1,560

Cost of ending work in process inventory for materials, labor, overhead

Materials

Cost = Equivalent units × unit cost

        = 2,080 × $ 13.70

        = $28,496

Labor

Cost = Equivalent units × unit cost

        = 1,560 × $4.70

        = $7,332

Overheads

Cost = Equivalent units × unit cost

        = 1,560 × $ 7.40

        = $11,544

Cost of the units transferred to the next department

Materials = $28,496

Labour = $7,332

Overheads = $11,544

Total = $47,372

Cost reconciliation for January

INPUTS

Beginning Cost + Cost Added                             $720,752

Total                                                                       $720,752

OUTPUT

Ending Work in Process                                         $47,372

Completed and Transferred ( 26,100 × 25.80)  $673,380

Total                                                                      $720,752

From a business perspective, ___________ taxes are analogous to the personal property taxes paid by individuals.
a. sales
b. real estate
c. inventory
d. corporate franchising

Answers

Answer:

c. inventory

Explanation:

As per the business perspective, the inventory taxes should be analogous for the personal property taxes that paid by the individuals as the inventory taxes is involved in the business property tax i.e. tangible as well as personal

Therefore as per the given options, the option c is correct

And, the other options are incorrect

What does the communication technique "slow down and be patient" mean

Answers

Answer:

Slow your speech so the person has time to think about each word you say.

Explanation:

These are the options for the question

Avoid looking at your watch when giving care. Slow your speech so the person has time to think about each word you say. Slow your body movements and wait as long as it takes for the person with dementia to respond.

Communication technique are ways of passing information from one person to another, the communication technique "slow down and be patient" symbolized that when you are making a speech, you need to Slow your speech so the person has time to think about each word you say, and a he/she will be able to give the necessary response or act accordingly to the speech.

Compute the most profitable sales mix for the company. 2. Determine the month's total contribution margin for the most profitable sales mix. (Leave no cells blank - be certain to enter "0" wherever required.)

Answers

Answer:

Note: The full question is attached as picture below

                                                                   Acoustic    Electric        Total

(a) Hours dedicated to each product           262            90  

Units produced for most profitable mix       131              30

(b)  Contribution Margin per unit                  $130           $180

Total Contribution Margin - two shifts         $17,030      $5,400   $22,430

Total Contribution Margin - one shift                                              $11,440

Incremental Revenue                                                                       $10,990

Incremental Expense                                                                        $9,000

Total Incremental Income                                                                $1,990

Conclusion: Yes, the company should add another shift

                                                               Acoustic    Electric        Total

Sales Price                                                $225          $300

Variable Cost                                            $95             $120

Contribution Margin per unit                   $130            $180

Machine hours per unit                                2                 3  

Contribution Margin per machine hour  $65              $60  

Maximum Demand                                   131                 65

Hours Required                                        262              195

Hours Used                                               176

Contribution Margin (One Shift)          $11,440           -             $11,440

Perdue Company has purchased equipment that requires annual payments of $30,000 to be paid at the end of each of the next 6 years. The appropriate discount rate is 12%. What amount will be used to record the equipment?a. $165,772b. $180,000c. $115,650d. $123,342

Answers

The answer will be $123,342

The construction industry traditionally has had:________.a. Lower profit margins significantly below many other industriesb. Has delivered profits on par with the average of the Standard & Poors 500 index companiesc. Has consistently outperformed the S&P 500 index companies​

Answers

Answer:

a. Lower profit margins significantly below many other industries

Explanation:

Only the retail industry has traditionally yielded lower profit margins than the construction business. In other words, the profit margin of the construction business is lower than almost all other industries.

The thing with construction is that it takes a long time to finish construction works and they are also relatively safe investments. Of course you can lose money, but there is no risk free industry.

If the yen is selling at a premium relative to the euro in the forward market, is the forward price of EUR per JPY larger or smaller than the spot price of EUR per JPY?

Answers

Answer:

The forward price of EUR per JPY will be LARGER

Explanation:

Based on the information in a situation where yen is selling at a premium which is an additional amount charged in the forward market, it means that forward price of EUR per JPY which is the price that has been negotiated and agreed upon will be LARGER than the spot price of EUR/JPY which is the market current price to be traded on the spot.

Therefore The forward price of EUR per JPY will be LARGER.

The bonds issued by United Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000 face value. Currently, the bond sells at $955. The yield to maturity (YTM) is _____%.

Answers

Answer: 6.40%

Explanation:

Use Excel to calculate this by the formula;

= RATE(Nper,Pmt,-Pv,Fv)

Nper is number of periods = 20 * 2 = 40 semi annual periods

Pmt is the payment = $6%/2 * 1,000 = $30

Pv is the present value = $955

Fv is future value or face value = $1,000

= RATE (40,60,-955,1000)

= 3.20% * 2 (because this is a semi annual rate)

= 6.40%

If the bond sells at $955. The yield to maturity (YTM) is 6.40%.

First step is to find the rate using financial calculator

Rate=(Nper,Pmt,-Pv,Fv)

Where:

Nper = 20 ×2 = 40 years

Pmt = $1,000×6%/2 = $30

Pv = $955

Fv = $1,000

Hence:

Rate=(40,60,-955,1000)

Rate=3.20%

Now let calculate the yield to maturity (YTM)  

Yield to maturity= 3.20%×2

Yield to maturity=6.40%

Inconclusion the yield to maturity (YTM) is 6.40%.

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3. Ali invested two stocks, A and B. he invested

Stock A $4000 of the value of the portfolio and stock B invested $6000. The expected returns over the next 6 years, 2020-2025, for each of

these stocks are shown in the following table.

Expected returns

Stock A

10%

11

11

17

13

10

Stock B

10%

18

11

13

12

17

Year

2020

2021

2022

2023

2024

2025

N all

A. Calculate the weight, Wp, for each of the

6 years.

B. Compute the expected value of portfolio

returns over the 6-year period.

C. Calculate the standard deviation of expected portfolio returns over the 6-year

period​

Answers

Answer:

10%

Explanation:

You are an analyst for a home building company tasked with creating a financial model of home-building trends. Which of the following factors should your model address?

a. Number of landlords per capita and home Improvement store sales
b. Automobile sales per capita and the number of visitors to a country
c. Number of for-rent property signs and the employment rate of the millennials
d. The price of wood products and long-term interest rates

Answers

Answer:

d. The price of wood products and long-term interest rates

Explanation:

Your company builds homes and sells them. A home-building trend analysis is supposed to help you determine the number of future homes that the market will demand in the future and what type of homes will be demanded. It also should help you estimate future costs.

Option a) knowing the number of landlords per capita gives you an idea of which places will demand more homes in the future, but knowing the number of home improvement stores is useless.  Option b) car sales have nothing to do with home sales. Option c) because millennials are the future home buyers, that is your target market, so knowing their employment rate is very important. But the number of for rent signs is not significant at all. To be honest, how many for rent signs do you see on houses nowadays. Most real estate listings are made on the internet.

1. Through the last decade, we have seen the impact business people have on our society. At the end of your career, what do you think people will say you did for society

Answers

Answer:

Impact of Business on Society

At the end of my career, I would like people to say that I have increased the opportunities for society to achieve sustainable survival.

Explanation:

This implies that I will ensure that my business community enjoys more of the positive impact that businesses can make in improving the society.  To achieve this, I will ensure that my business operates in a sustainable, eco-friendly environment and engages in practices that promote such enabling environment.  I will promote restraint in the use of ozone-depleting chemicals and advocate for renewal energy.  I will promote green environments for my business and the community where it is located.

The Stinson family owns a farm. Three alternatives exist for how to use the farm: a) Grow wheat. Wheat yield would be 70 bu/acre. The price of wheat is $3.50/bu and production expenses are $140/acre b) Grow Barley. Barley yield would be 50 bu/acre. The price of barley is $2.50/bu and production expenses are $150/acre c) Lease out the acres. the Neighbor will bay $80/acre but they will still have expenses of $35/acre.

Answers

Answer:

Following are the solution to the given questions:

Explanation:

Please find the complete question in the attached file.

In this question, the Stinsons would prefer the most profitable alternative  

Formula:

[tex]Profit = Income - Costs = (price \times amount) - Costs \ of \ production[/tex]

In point A:

[tex]\to Profit = (70 \times \$3.5) - \$140[/tex]

              [tex]= \$245 - \$140\\\\ = \$105 \ / \ acre[/tex]

In point B:

[tex]\to Profit = (50 \times \$2.5) - \$150[/tex]

              [tex]= \$125 - \$150\\\\ = - \$25 \ / \ acre \ (Loss)[/tex]

In point C:

[tex]\to Profit = \$80 - \$35=\$45 \ / \ acre[/tex]

Oriole Company purchased a depreciable asset for $611000 on January 1, 2018. The estimated salvage value is $53000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2021, Oriole changed its estimates to a total useful life of 5 years with a salvage value of $95000. What is 2021 depreciation expense

Answers

Answer:

Annual depreciation= $165,000

Explanation:

First, we need to calculate the accumulated depreciation at 2021:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (611,000 - 53,000) / 9

Annual depreciation= $62,000

Accumulated depreciation= 62,000*3= $186,000

Now, the depreciation for 2021:

Depreciable price= (611,000 - 186,000) - 95,000= $330,000

Remaining life= 5 - 3= 2 years

Annual depreciation= 330,000 / 2

Annual depreciation= $165,000

Company ABC just paid an annual dividend of $3.55 on its common stock. The firm increases its dividend by 3.55 percent annually. What is the company's cost of equity if the current stock price is $43.24 per share?

Answers

Answer:

8.5%

Explanation:

Company ABC just paid an annual dividend of $3.55

The firm increases its dividend by 3.55 percent annually

The current stock price is $43.24

Therefore the company cost of equity can be calculated as follows

= 3.55 × (1+3.55/100)/43.24+3.55/100

= 3.55 × 1+0.0355/43.24+0.0355

= 3.55 × 1.0355/43.2755

= 3.6760/43.2755

= 0.085× 100

= 8.5%

Hence the company cost of equity is 8.5%

Cindy sold her interest in a partnership for $20,000 cash when her outside basis was $5,000. She was relieved of her $25,000 share of partnership liabilities. What is Cindy's realized value from the sale of her partnership interest?

Answers

Answer:

$40,000

Explanation:

Cindy sold her interest in a partnership business for $20,000

Her outside basis is $5,000

She was relieved of $25,000 partnership shares

Therefore her realized value from the sale of her partnership interest can be calculated as follows

=>$20,000 + $25,000 - $5,000

=>$45,000 - $5,000

= $40,000

Hence her realised value is $40,000

All of the following nondependent taxpayers are U.S. citizens. Which is required to file a 2018 income tax return?A. Sal (62), married filing separately (MFS), $3,500 gross income, and spouse does not itemize.B. Ariel (50), qualifying widower (QW), $18,550 gross income.C. Fred (32), head of household (HOH), $17,500 gross income.D. Clarisse (75), single (S), $12,575 gross income, all from wages.

Answers

Answer:

A. Sal (62), married filing separately (MFS), $3,500 gross income, and spouse does not itemize

Explanation:

IRS stands for Internal Revenue Service. It is a federal government agency responsible for all the tax related matters of the people in the United States of America. Everybody in America has pay income tax return in the U.S.

In the context, Sal is 62 years old and is a non-dependent tax payer of the U.S. He is married and is filing tax return separately $ 3,500 of his gross income and his spouse does not itemize. He is suppose to file tax return for 2018.

All the requirements that are needed to file a 2018 income tax return as at 2018 as nondependent taxpayers in U.S are:

A. Sal (62), married filing separately (MFS), $3,500 gross income, and spouse does not itemize.

A taxpayer can be regarded as person or organization that are subjected to payment of tax.

As at 2018, to file a income tax return, then some requirements such as $3,500 gross income, is required, married filing separately (MFS) and others.

Therefore, option A is correct.

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for each unit, $3,000 of direct material is used and there is $2,000 of direct manufacturing labor at $20 per hour. manufacturing overhead is applied at $25 per direct manufacturing labor hour. calculate the profit earned on 50 units

Answers

Answer:

$10

Explanation:

Per the above information, we need to find out the labor hours consumed by each unit

Manufacturing labor hour per unit = $2,000 ÷ $20 per hour = $100 per unit

The manufacturing overheads per unit = $100 per hour × 25

= $2,500 per unit

The cost per unit of each printer is

Direct material $3,000

Direct labor $2,000

Manufacturing overhead $2,500

Total cost per unit $7,500

which option is best described as a complementary good for computer hard drives?

Answers

Answer: Computer monitor

Explanation:

A complementary good is a good that's used together with another good. A good example of a complementary good is a car and petrol since they are used together.

A complementary good for computer hard drives would be the computer monitor. The monitor simply looks like a television and it helps in showing the information which is being displayed.

Answer:

Computer Monitors

Explanation:

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