Answer:
Brightstone Tire and Rubber Company
a. Differential Analysis dated January 21
Alternative 1 Alternative 2
Reject Accept
Revenue from special order ($2,076,000) $2,076,000
Avoidable costs 2,493,120 2,831,520
Cost Differential ($417,120) ($755,520)
b. The company should reject the special order from Euro Motors as it will incur more costs when it accepts than when it rejects the special order.
c. The minimum price per unit that would be financially acceptable to Brightstone is $117.98.
Explanation:
a) Data and Calculations:
Production capacity in tires = 204,000
Current production and sales units = 156,000
Selling price per tire for the North American market = $100
Special order of 24,000 tires from Euro Motors = $86.50 per tire
Total cost per tire: Total Variable
Direct materials $54 $54
Direct labor 24 24
Factory overhead (62% variable) 24 14.88
Selling and administrative expenses (44% variable) 25 11
Total $127.00 $103.88
Special Order:
Offer price = $86.50
Reject Accept
Variable cost per unit $103.88 $2,493,120
Less selling commission (0.44)
Additional shipping cost 7.65
Cost of certification 6.89
Total per unit costs = $117.98 $2,813,520
Operating income (loss) ($31.48)
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows:
Demand
Staffing Options High Medium Low
Own staff 650 650 600
Outside vendor 900 600 300
Combination 800 650 500
Required:
a. If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
b. Construct a risk profile for the optimal decision in part (a).
Answer:
Explanation:
a. If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
Expected value own staff = 0.2(650 + 0.5(650) + 0.3(300) = 635
EV outside vendor = 0.2(900) + 0.5(600) + 0.3(300) = 570
EV combination = 0.2(800) + 0.5(650) + 0.3(500) = 635
Therefore, the correct answer is outside vendor since it has the minimum expected value.
b. Construct a risk profile for the optimal decision in part (a)
Demand Cost Probability
Low. 300000. 0.3
Medium. 600000. 0.5
High 900000. 0.2
The required probability is 0.2
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their: Group of answer choices fair market value at the time of the contribution. assessed values for property tax purposes. original costs to the partner contributing them. book values on the partners' books prior to their being contributed to the partnership.
Answer:
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their:
fair market value at the time of the contribution.
Explanation:
This fair market value of the assets contributed by each partner provides the best measurement value at which assets contributed in a partnership should be recorded. The asset class is debited while the partner's capital account is credited with this fair market value and not the book or cost value.
A study by the Environmental Protection Agency looked at the costs and benefits of the Clean Air Act from 1970 to 1990. This study found that a middle-range estimate of health and other benefits of cleaner air were valued at $22 trillion. This amount was about __________________ than the costs of reducing pollution, which was around $500 billion, in the same period.
Answer: d. 44 times higher
Explanation:
The benefits of cleaner air was $22 trillion and the cost of reducing pollution was $500 billion.
The number of times that you would have to multiply this cost of reducing pollution to get to the benefits of cleaner air is:
= 22 trillion / 500 billion
= 22,000 billion / 500 billion
= 44 times higher
اقرأ الفقرة التالية واجب عن الأسئلة التي تليها .33
نفترض انك تقدمت بطلب من بنك البحرين الإسلامي لتمويل مشروعك الخاص والحصول على تمويل بقيمة
5400 دينار بحريني، حيث ستكون مدة التمويل 6 سنوات و بسعر فائدة وقدرها 8% سنوية بالإضافة الى
.مصاريف إدارية 65 دينار والتأمين على القرض 115 دينار
Enter your answer
* :قيمة الفائدة السنوية -1
.34
(2 Points)
Enter your answer
* :قيمة الفائدة الإجمالية -2
.35
)
(2 Points)
Answer:
الدينار البحريني، (بالإنجليزية: Bahraini dinar)، هو عملة البحرين.[1][2][3] يقسم الدينار إلى 1000 فلس. وهو مرتبط بالدولار الأمريكي.


البلد البحرينتاريخ الإصدار1965رمز العملةد.برمز الأيزو 4217BHDالمصرف المركزيمصرف البحرين المركزيموقع المصرف المركزيمصرف البحرين المركزيسعر الصرف2 دولار أمريكي (22 نوفمبر 2016)
2.65957446809 دولار أمريكي
10 روبية خليجية العملات المعدنية1⁄2, 5, 10, 25, 50, 100 (500 فلس)العملات الورقية1⁄2, 1, 5, 10, 20 د.ب.الموقع الرسميwww.cbb.gov.bhتعديل مصدري - تعديل 
يبلغ سعر صرف الدينار البحريني 2.6526 الدولار الأمريكي، أو 1 دولار يعادل 377 فلس.
Starling Co. is considering disposing of a machine with a book value of $24,600 and estimated remaining life of five years. The old machine can be sold for $5,700. A new high-speed machine can be purchased at a cost of 65,300. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,300 to $19,600 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Answer:
The answer is "decrease of $41,100".
Explanation:
5-year cost-saving =[tex](23300-19600)\times 5 = \$18,500[/tex]
old machine Sale value = [tex]\$5,700[/tex]
Differential effect on income = cost savings for 5 years +Sale value of old machine - purchase cost of the new machine
[tex]= 18500+ 5700 - 65300\\\\= - 41,100[/tex]
Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $3,000 and increased costs of about $2,000.
Sales $230,000
Cost of goods sold 150,000
Depreciation expense 30,000
Other expenses 20,000
Answer:
6
Explanation:
The computation of the shipping errors in the case of break even is given below;
But before that the net operating income is
Sales $230,000
Less: Cost of goods sold 150,000
Less: Depreciation expense 30,000
Less: Other expenses 20,000
Net operating income $30,000
Now the shipping errors is
= $30,000 ÷ ($3,000 + $2,000)
= 6
The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,840 liters in beginning work in process inventory (30% complete). During the period 64,880 liters were completed. The ending work in process was 5,160 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process
Answer:
Total equivalent units of materials = 64,652
Explanation:
Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work
Equivalent Units = Degree of work completed (%) × inventory units
Fully worked = 64,880- 3,840= 61,040
Items units workings Equivalent units
Opening inventory 3,840 3840× 70% = 2,688
Fully worked 61,040 61,040× 100 = 61,040
Closing WIP 5,160 5,160× 70% = 3,612
Total equivalent units of materials 64,652
Total equivalent units of materials =64,652
At a price of $35, there would be Select one: a. excess demand, and the price would tend to fall from $35 to a lower price. b. a shortage, and the price would tend to rise from $35 to a higher price. c. excess supply, and the price would tend to fall from $35 to a lower price. d. a surplus, and the price would tend to rise from $35 to a higher price.
Answer: c. excess supply, and the price would tend to fall from $35 to a lower price.
Explanation:
At $35 there is excess supply because this is a price that most consumers are not willing to pay but most suppliers are willing to sell.
Supply at $35 = 600
Quantity demanded at $35 = 200
This would lead to prices falling as suppliers try to sell the excess supply. The prices would ideally keep falling till the equilibrium price is reached which is $25. At this point, the quantity demanded and supplied will be equal to each other.
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everything on the scale is a good idea for me to church.
do u want to go to gym at the same time and I
Van is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Eric decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change.
Identify what role money plays in each of the following parts of the story.
a. Role of money medium of unit of store
b. Exchange account of value
c. Eric can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
d. Eric accumulates money in his savings account for future purchases.
e. Eric buys his lunch with a $10 bill.
Answer and Explanation:
c. In the given case Eric valued the goods in terms of money so here the role of money plays is the unit of account that represent something that can be used in order to value the goods and services
d. In the case when eric wants to store the money and use them in a future so here it is storing of value
e. In this case, eric purchased the lunch and pay $10 so here the food is exchanged with the money that represent the medium of exchange
Consider the following $1000 par value zero-coupon Treasury bonds: Bond Years to Maturity Yield to Maturity A 1 4.00% B 2 4.50% C 3 5.11% D 4 5.86% E 5 6.25% The expected 2-year interest rate three years from now should be __________. Enter your answer in percent to the nearest hundredth, for example if your answer is .25432, enter 25.43.
Answer: 7.98%
Explanation:
This deals with spot rates and forward rates. The 2 year interest rate three years from now is the 2 year forward rate, 3 years from now.
It can be calculated through the relationship below:
(1 + 5 year spot rate)⁵ = (1 + third year spot rate)³ * (1 + 2 year forward rate)²
(1 + 6.25%)⁵ = (1 + 5.11%)³ * (1 + 2 year forward rate)²
1.35408 = 1.161267 * (1 + 2 year forward rate)²
(1 + 2 year forward rate)² = 1.35408 / 1.161267
1 + 2 year forward rate = √1.16603675
2 year forward rate = √1.16603675 - 1
= 7.98%
Agency has a capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. The dividend payout ratio is 30 percent, the company's beta is 1.21, and the tax rate is 21 percent. Given this, which one of the following statements is correct?
a. The aftertax cost of debt will be greater than the current yield-to-maturity on the company's outstanding bonds.
b. The company's cost of preferred is most likely less than the company's actual cost of debt.
c. The cost of equity is unaffected by a change in the company's tax rate.
d. The cost of equity can only be estimated using the capital asset pricing model.
e. The weighted average cost of capital will remain constant as long as the company's capital structure remains constant.
Answer: c. The cost of equity is unaffected by a change in the company's tax rate.
Explanation:
The cost of debt can be adjusted for taxes because interest payments are tax deductible. This is not the case with Equity. Equity is not tax deductible so there is not adjustment to the cost of Equity for taxes.
This means therefore, that the calculation of cost of equity will not change in any way due to the company's tax rate. For this reason, the cost of equity is usually higher than that of debt.
Why would a Roth 401(k) investment plan allow you to invest the most amount of money?
Answer:
401k
Explanation:
investment plan allow you to invest the most amount of money? ... A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed.
Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is used for all costs incurred.
Record the the costs of $10,000 cash incurred on the used machine
Record the costs of $2,000 for an operating platform
2
2. Prepare journal entries to record depreciation of the machine at December 31.
(a) Its first year in operation.
(b) The year of its first disposal
Answer:
A. 2-Jan
Dr Machinery $240,000
Cr Cash $240,000
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
B. Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Explanation:
A. Preparation of the journal entries to record the machine's purchase and the costs to ready and install it
2-Jan
Dr Machinery $240,000
Cr Cash $240,000
(Being machinery purchased)
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
(Being expenses paid for machinery readies)
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
(Being installation charges paid)
B. Preparation of journal entries to record depreciation of the machine at December 31.
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
($240,000+$10,000+$2,000=$252,000)
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
Which of the following is NOT one of the four factors of production?
1. Entrepreneurship
2. Natural resources
3. Human Resources
4. Production Resources
Thomlin Company forecasts that total overhead for the current year will be $11,742,000 with 164,000 total machine hours. Year to date, the actual overhead is $7,547,000 and the actual machine hours are 83,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$46 per machine hour b.$141 per machine hour c.$91 per machine hour d.$72 per machine hour
Answer:
d.$72 per machine hour
Explanation:
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined overhead rate = $11,742,000 ÷ 164,000
= $71.598 or $72
The predetermined overhead rate based on machine hours is $72 per machine hour.
At December 31, 2021 and 2020, Cow Co. had 117,000 shares of common stock and 6,700 shares of 3%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $670,000. For 2021, basic earnings per share was: Multiple Choice $2.01 $5.38 $8.73 $5.55
Answer:
$5.55
Explanation:
Calculation to determine what the basic earnings per share was
Using this formula
EPS=Net income-(Value cumulative preferred stock percentage*Net income)/Shares of common stock
Let plug in the formula
EPS=$670,000-(3%*$670,000)/117,000
EPS=$670,000-$20,100/117,000
EPS=$649,900/117,000
EPS=$5.55
Therefore For 2021, basic earnings per share was: $5.55
Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.5 while the risk-free return is 9 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $787.22 that have a coupon rate of 8 percent. The firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 30 percent marginal tax rate
Answer:
see explanation
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.
WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of equity = Return on Risk free rate + Beta x Risk Premium
= 9.00 % + 2.5 x (14.00 % - 9.00%)
= 21.50 %
Cost of debt :
similar
N = 7 x 2 = 14
p/yr = 2
pmt = ($787.22 x 8%) ÷ 2 =
fv = $787.22 x number of bonds
pv = $80,000,000
Always use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
If the demand for meals at the Campus Café declines. This will result in...
What will happen to the equilibrium price,supply and quantity
Answer:The campus may have a surplus of cook food that will affect the schools budget
Explanation:
all this cook food will go to the garbage in not consumed anytime soon , the school board seeing this waste of food will probably reduced the food budget meaning less food for the students , and when the students start to eat again cafeteria food there will not be enough for everyone
An agreement is formed between a new company and an existing well-established organization. The agreement states that the established company will provide financial capital and other resources and the start-up will contribute its technological expertise. This method of acquiring new technology is known as g
Answer:
Research partnership
Explanation:
The Research partnership is the partnership which can be designed for the particular new technology development. In this, the reasearchers and the stakeholders would be worked together in a research project that represent the important part of the research. In addition to this, the established company would give the financial capital & other resoruces also the startip would be able to contribute the technological expertise.
Therefore the above represent the answer
In management, An agreement that is set up between a new company and an existing well-established organization that can result to acquiring new technology is is Research partnership.
Research partnership serves as agreement that is usually signed by two companies i.e new one and established one.This agreement is about how the established organization will help the new one financially and with resources.This method di results to occurrence of technological expertise.
Therefore, Research partnership helps in
acquiring new technology.
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https://brainly.com/question/4373364
Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by applying the average-LCM alternative. The information below pertains to one department within its Scottsdale, Arizona store. You will use this information to determine ending inventory and cost of goods sold for financial reporting purposes. Assume no inventory shrinkage, and a periodic inventory system.
Beginning inventory of merchandise
Cost, $40,000
Retail, $360,000
Purchases during the period
Cost, $1,000,000
Retail, $10,000,000
Transportation in, $50,000
Transportation out, $32,000
Purchase returns
Cost, $20,000
Retail, $196,000
Net additional markups, $800,000
Net markdowns, $500,000
Sales, $9,800,000
Using the information above, compute the amounts to be reported in the financial statements for ending inventory and cost of goods sold for the department. The spreadsheet below has been started for you. Line items have been entered in column A. In columns B and C, enter appropriate amounts as well as intermediate subtotals directly below the amounts leading to the subtotal. Include the cost to retail calculation as well as your two amounts for financial statement reporting. Round the cost to retail ratio to four decimal places and include the "0" preceding the decimal point. Enter 0 where no other entry is appropriate.
A1 lock copy cut paste
A B C
1 Line Item Description Cost Retail
2 Beginning inventory $40,000
3 Purchases
4 Transportation in
5 Purchases returns
6 Net purchases
7 Net additional markups
8 Cost to retail ratio components
9 Net markdowns
10 Sales
11 Ending inventory, retail
12 Set up Calculation
13 Cost to retail ratio
14 Ending inventory, cost
15 Cost of goods sold
Answer:
1 Line item description Cost Retail
2 Beginning inventory 40000 360000
3 Purchases 1000000 10000000
4 Transportation in 50000
5 Purchase returns -20000 -196000
6 Net purchases(3+4+5) 1030000 9804000
7 Net additional markups 800000
8 Cost to retail ratio 1070000 10964000
component(2+6+7)
9 Net markdowns -500000
10 Sales -9800000
11 Ending inventory,retail(8+9+10) 664000
Setup calculation:
Cost to retail ratio = Cost to retail ratio component at cost/Cost to retail ratio component at retail
= 1070000/10964000
= 0.097592
= 9.76%
Ending inventory,cost = Ending inventory,retail*Cost to retail ratio
= 664000*9.76%
= $64806
Cost of goods sold = Sales*Cost to retail ratio
= 9800000*9.76%
= $956480
The expected return on the market portfolio is 14%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 13%. The beta of SDA Corp. common stock is 1.30. Within the context of the capital asset pricing model, _________.
Answer:
-.34%
Explanation:
Calculation to determine capital asset pricing model,
Alpha=.13-[.06+1.30(.14-.06)]
Alpha=.13-[.06+1.30(.08)]
Alpha=.13-[.06+0.104]=
Alpha=.13-0.164
Alpha=-.34%
Therefore Within the context of the capital asset pricing model, is -.34%
What function do regulations like the General Data Protection Regulation (GDPR)
serve?
Answer:
This regulation is called the EU General Data Protection Regulation or GDPR, and is aimed at guiding and regulating the way companies across the world will handle their customers' personal information and creating strengthened and unified data protection for all individuals within the EU.
Explanation:
Cliff Company traded in an old truck for a new one. The old truck had a cost of $130,000 and accumulated depreciation of $65,000. The new truck had an invoice price of $135,000. Huffington was given a $63,000 trade-in allowance on the old truck, which meant they paid $72,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck
Answer:
the recorded value of the new truck is $135,000
Explanation:
The computation of the recorded value of the new truck is given below;
In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000
Hence, the recorded value of the new truck is $135,000
The same would be considered and relevant
And all other values are to be ignored
Robert Nozick's direct criticism of the importance of income equality is that: a. trade performed on a cumulative basis would result in equal outcomes and opportunities for people. b. All of the answers are correct. c. peaceful trade should not be condemned even when it leads to large differences in wealth. d. equality results only from freely chosen market transactions, devoid of coercive force or fraud.
Answer: c. peaceful trade should not be condemned even when it leads to large differences in wealth.
Explanation:
Income inequality simply refers to the unevenly distribution of income in a population. It should be noted that the less equal the distribution, the higher the income inequality will be.
According to Robert Nozick, the direct criticism of the importance of income equality is that peaceful trade should not be condemned even when it leads to large differences in wealth.
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin
Answer:
The Fortise Corporation
The total sales-mix variance closest to $1,055,000 in terms of the contribution margin.
Explanation:
a) Data and Calculations:
Static Budget Victor House-Mate Total
Total Number sold 20,000 80,000 100,000
Contribution margin $4,600,000 $15,200,000 $19,800,000
Actual Results Victor House-Mate Total
Number sold 21,500 64,500 86,000
Contribution margin $6,665,000 $14,190,000 $20,855,000
Variance
Number sold 1,500 F 15,500 U 14,000 U
Contribution margin $2,065,000 F $1,010,000 U $1,055,000 F
Arkansas Co. believes in the international Fisher effect. It has excess funds that it can invest in money market securities for one year. It can invest in the U.S. at an interest rate of 4%, Japan at an interest rate of 2%, the United Kingdom at an interest rate of 6%, or Brazil at an interest rate of 9%. It would not cover any investment that it takes against exchange rate risk. Its expected return on its investment will be highest in_________________.
Answer: It would be the same across all the countries.
Explanation:
The Fischer effect is used to describe the relationship that a country's interest rates and its exchange rate. That relationship is such that the differences between the different interest rates offered in various countries is captured by their exchange rate.
That means that whatever gains are made in interest rates will be eroded when the currency it was made in is converted to the local currency of the investor. As this company took no cover against exchange rate risk, all the countries are effectively offering the same rate as a result of the Fisher effect.
On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements
Answer:
3600
7200
Explanation:
Flax Co. acquired 80% percent of the voting common stock of Levinson Corp. on January 1, 2021. During the year, Flax made sales of inventory to Levinson. The inventory cost Flax $275,000 and was sold to Levinson for $420,000. Levinson held $84,000 of the goods in its inventory at the end of the year. The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is: Multiple Choice $23,200. $67,200. $145,000. $116,000. $29,000.
Answer:
$29,000
Explanation:
Calculation to determine what The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is:
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit = $29,000
Robert and Mary file a joint tax return for 2020 with adjusted gross income of $34,000. Robert and Mary earned income of $20,000 and $14,000, respectively, during 2020. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: Union Day Care Center for John $1,700 Wilma (Robert's mother) for babysitting John $1,000 What is the amount of the child and dependent care credit they should report on their tax return for 2020 (assume no tax liability limitation)