Answer:
$8,000
Explanation:
The computation of the amount of dividend received by the preferred shareholders in year 2 is shown below:
Annual preferred dividend = Par value of preferred stock × Dividend rate on preferred stock
= 200,000 × 4%
= $8,000
By multiplying the par value with the dividend rate we can get the amount of dividend received and the same is shown above
The two advantages are:
- Renters are not affected by changing property price
- Renters don’t have to pay for major repairs to the property
The housing department require the home owner to pay for major repairs that happen in the rented place (Such as broken roof or leaking gas). Not only that, the owner of the home is the one that would be financially damaged if the housing markets experience a crash.
<u>Answer: </u>True
<u>Explanation:</u>
Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.
Net proceeds from sale of units = 425000 - 150000
=$275,000
It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.
