Challenging Business Problems with Detailed Answers

on january 1, 2021, the marjlee company began construction of an office building to be used as its corporate headquarters. the building was completed early in 2022. construction expenditures for 2021, which were incurred evenly throughout the year, totaled $7,500,000. marjlee had the following debt obligations which were outstanding during all of 2021: construction loan, 12% $ 1,875,000 long-term note, 11% 2,500,000 long-term note, 8% 5,000,000 required: calculate the amount of interest capitalized in 2021 for the building using the specific interest method.
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high country home decor has three divisions: traditional, contemporary, and rustic. high country had sales of $7,100,000 during the most recent fiscal period. fixed costs totaled $1,520,000. sales were $3,100,000 for the traditional division, $2,400,000 for the contemporary division, and $1,600,000 for the rustic division. controllable fixed costs were $700,000 for traditional division, $310,000 for the contemporary division, and $210,000 for the rustic division. variable costs were $1,240,000 for the traditional division, $960,000 for the contemporary division, and $820,000 for the rustic division. what is the controllable margin for the rustic division?
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lenitnes company is considering an investment in technology to improve its operations. the investment will require an initial outlay of $250,000 and will yield the following expected cash flows. management requires investments to have a payback period of three years, and it requires a 10% return on its investments. (pv of $1, fv of $1, pva of $1, and fva of $1) (use appropriate factor(s) from the tables provided.) period cash flow 1 $ 125,000 2 94,000 3 75,000 4 52,000 5 47,000 required: 1. determine the payback period for this investment. 2. determine the break-even time for this investment. 3. determine the net present value for this investment.
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tones industries has a patent with a cost of $15,000 and accumulated amortization of $5250 on its december 31, 2020, balance sheet. as a result of reduced demands for products protected by patent b, a possible impairment of patent b's value may have occurred on december 31, 2020. the controller for tones estimates the year end expected future cash flows from patent b will be $2000 for the next 3 years. the appropriate discount rate for the cash flow is 8%. compute the impairment loss of tones' patent b on its december 31, 2020, if any. hint: the appropriate time value factor for a present value of $1 annuity for 3 periods and 8% rate is 2.5771.
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presented below is selected information for sheridan company. answer the questions asked about each of the factual situations. (do not leave any answer field blank. enter 0 for amounts.) 1. sheridan purchased a patent from vania co. for $1,160,000 on january 1, 2018. the patent is being amortized over its remaining legal life of 10 years, expiring on january 1, 2028. during 2020, sheridan determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. what amount should be reported in the balance sheet for the patent, net of accumulated amortization, at december 31, 2020?
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question content area cash paid for preferred stock dividends should be shown on the statement of cash flows under a.noncash investing and financing activities b.operating activities c.investing activities d.financing activities
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on january 1, 2020, hammons company signed a five-year noncancelable lease for equipment. hammons was required to make annual payments of $150,000 at the beginning of each year with the title passing to hammons at the end of the lease. hammons appropriately accounts for this lease transaction as a finance lease. hammons uses the straight-line method of amortization for all of its leased assets, and the leased equipment has an estimated useful life of 7 years with no salvage value. if the lease payments were determined to have a present value of $625,479 at an effective interest rate of 10%, what should hammons record as interest expense in 2021?
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which of the following firms has the least incentive to advertise? a. a wholesaler of crude oil b. a restaurant c. a manufacturer of home heating and air conditioning d. a manufacturer of breakfast cereal
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for both the current year and one year ago, compute the following ratios: 1. return on equity. 2. dividend yield. 3a. price-earnings ratio on december 31. 3b. assuming simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for future growth?
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a guaranteed residual multiple choice question. increases the present value of lease payments. can increase or decrease the present value of lease payments depending on the lease term. decreases the present value of lease payments. does not affect the present value of lease payments.
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which of the following will increase the price of a money market instrument computed using a discount yield? i. bank discount rate ii. bond equivalent rate iii. annual percentage rate iv. effective annual rate i and iv only i and iii only ii and iv only i and ii only ii and iii only
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you are hiring a manager to run your service operations for the southern region. based upon what we know about being able to adapt several different approaches in leadership, what is the best way to hire the manager to have the highest probability of success?
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you purchased butterfly wing corporation stock exactly one year ago at a price of $77.95 per share. over the past year, the stock paid dividends of $2.98 per share. today, you sold your stock and earned a total return of 15.95 percent. what was the price at which you sold the stock?
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all of the following would have a positive impact on team behavior except question 29 options: a) sharing leadership. b) competing for individual recognition. c) analyzing tasks and defining problems. d) confronting conflict.
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a. credit card fraud increases the demand for money. b. the introduction of a stylish line of teslas makes some consumers prefer domestic cars over foreign cars. c. a domestic political crisis raises the domestic risk premium
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what does a company do during the pre-ipo stage? responses files paperwork with the government files paperwork with the government seeks financing from an angel investor seeks financing from an angel investor uses proceeds to expand uses proceeds to expand sells stock to the public
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which of the following is not a host country characteristic than can affect an mnc's capital structure decision? a. the strength of host country currencies b. the country risk in host countries c. political decisions to increase penalties for criminals d. tax laws in host countries
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In the EOQ model, costs such as the opportunity cost of capital and storage facility rent are reflected in the _____ cost.
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In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
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A taxpayer is considered to be a material participant if he or she spends more than 500 hours in the activity.a. Trueb. False
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Breaking down resistance to a new strategic vision typically requires that management,on an as needed basis,A)institute a balance scorecard to measuring company performance, with the balance including a mixture of both old and new performance measures.B)inform company personnel about forthcoming changes in the company's strategy.C)reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updatesand progress reports as events unfold.D)explain all updates and merits of the company's business model to align strategy with employee concerns.E)raise wages and salaries to win the support of company personnel for the company's new direction.
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this form of promotional tool can be expensive because in many cases, marketers are handing out free giveaways. however, these giveaways are often what will encourage a consumer to make an actual purchase.Multiple Choice a.samples b.rebatesc.couponsd.contestse.loyalty programs
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Suppose the government wants to levy a new excise tax. For each of the following goods, determine whether you would expect an excise tax to result in large or small deadweight loss. a. Alcohol Deadweight loss is relatively (Click to select) b. Milk Deadweight loss is relatively (Click to select) c. Diamonds Deadweight loss is relatively (Click to select) d. Tropical vacations Deadweight loss is relatively (Click to select) e. Socks Deadweight loss is relatively (lick to select)
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HELP PLEASE I HAVE TO FINISH THISWhere should you look to find your current expenses when building your budget?- bank and credit statements- your wallet- ask your parents- your bank representative
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