Answer:
The correct answer is $7.94.
Explanation:
According to the scenario, the computation of the given data are as follows:
Total value of shares = ( 320,000 × $40 ) + ( 420,000 × $45) + (520,000 × $10) + 720,000 × $15)
= $12,800,000 + $18,900,000 + $5,200,000 + $10,800,000
= $47,700,000
So we can calculate the net asset value by using following method:
Net asset value = (Total value - Expenses ) ÷ Shares Outstanding
By putting the value, we get
= ( $ 47,700,000 - $ 40,000) ÷ $6,000,000
= $7.94
Answer:
Most of the question is missing, so I looked for a similar one and found the attached image.
CPI = (current year price × base year quantity) / (base year price × Base year quantity)
CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150
CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75
CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140
CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82
To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.
The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:
For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.
#SPJ3
B. 70.0%
C. 24.0%
D. 38.7%
Answer:
Option (B) is correct.
Explanation:
Given that,
Total Assets = $23,610
Interest-Bearing Debt (market value) = $11,070
Average borrowing rate for debt = 10.2%
Common Equity:
Book Value = $6,150
Market Value = $25,830
Marginal Income Tax Rate = 37%
Market Beta = 1.73
Hence,
Weight on equity capital = Equity ÷ (Debt + Equity)
= 25,830 ÷ (11,070 + 25,830)
= 25,830 ÷ 36,900
= 70%
Therefore, the weight on equity capital is 70%.
DEBIT CREDIT
Work in Process Inventory
Jan 31. Manufacturing Overhead
Raw Materials Inventory
Answer:
Materials used in production go to Work in Process so;
= 936 + 1,690 + 767
= $3,393
The materials used in the general factory will go to Manufacturing Overhead.
Date Debit Credit
Jan 31 Work in Process $3,393
Manufacturing Overhead $ 667
Raw Materials Inventory $4,060
Answer:
$26.52
Explanation:
The computation of the maximum price for paying for the stock today is shown below:
As we know that
Required rate of return = (Sale of the stock - maximum price + dividend received) ÷ (maximum price)
0.15 = ($28 - maximum price + $2.50) ÷ (maximum price)
0.15 × maximum price = $28 - maximum price + $2.50
So, the maximum price is $26.52
We simply applied the above formula
Answer:
December 31, 2022 Bad debts $ 2975
Explanation:
On December 31, 2021, Accounts Receivable $70,000
Allowance for Uncollectible Accounts $1,250
During 2022, Bad Debts $2,675
Allowance for Uncollectible Accounts $5,650 at December 31, 2022
Bad debt expense for 2022 would be
December 31, 2021
Allowance for Uncollectible Accounts $1,250
During 2022, Bad Debts $2,675
Required Adjustment $ 1425
December 31, 2022 Bad debts $ 2975
Allowance for Uncollectible Accounts $5,650 adjusted Balance
Allowance for Uncollectible Accounts Written Off $2,675
Required Adjustment $ 2975
Answer:
$7,075
Explanation:
Bad debt expense occur when the account receivables are no longer collectible due to inability to fulfill financial obligations by the customers in which it must be recorded and accounted for every time a company prepares its financial statements
Bad debt expense = $5,650− ($1,250 − $2,675) = $7,075
Therefore Bad debt expense for 2022 would be $7,075
Answer:
a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.
Explanation:
Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.
Year 1 $ (12,000) Net Section 1231 loss
Year 2 10,500 Net Section 1231 gain
Year 3 (14,000) Net Section 1231 loss
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Explanation of the answer is now provided as follows:
When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.
The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.
Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.
You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.
Therefore, we have:
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.
Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Unapplied losses in previous years can be calculated as follows:
Details Amount ($)
Net Section 1231 loss in Year 3 (14,000)
Net Section 1231 gain in Year 4 7,500
Net Section 1231 loss in Year 1 (12,000)
Net Section 1231 gain in Year 2 10,500
Unapplied losses in previous years (8,000)
Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.
Therefore, the amount to be reported as capital gain can be calculated as follows:
Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000
Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.