Firm a is negotiating with firm b to purchase firm b and bring it into the corporate organization headed by firm a. the two firms agree to the following: firm b's average annual income is $900, to continue for 10 years after purchase. firm b's total owner's equity is $2,000. firm b's market value of net identifiable assets is $3,500. the average rate of return in b's industry is 10%. the risk adjusted rate of return for the purchase is 8%. compute the purchase price for b implied by this information. the present value of an annuity of $1 for 10 years at 8% is 6.71008, and at 10% is 6.14457.

Oceanside marine company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. oceanside uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 2 pound per unit; $ 11 per pound direct labor: 2 hours per unit; $ 19 per hour oceanside produced 2 comma 000 units during the quarter. at the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 98 comma 100. what is the direct materials cost variance? (round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

Record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions: a. the allowance for doubtful accounts before adjustment has a credit balance of $500. b. the allowance for doubtful accounts before adjustment has a debit balance of $250. c. assume that octoberʼs credit sales were $70,000. uncollectible accounts expense is estimated at 2% of sales. smith, gaylord n.. excel applications for accounting principles (p. 51). cengage textbook. kindle edition.

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