Answer:
Real income has increased by $720 in terms of dollar and 2% in percentage
Explanation:
<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>
R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>
Real Income = 32000 × 120/125
=$30,720
Change Real income
Change in real income ($) = 30,720 - 30,000
= $ 720
Change in real income (%) = (720/30,000) × 100
= 2%
Real income has increased by $720 in terms of dollar and 2% in percentage
Answer:
$6,689
Explanation:
As we know that the inventory should be recorded at cost or net realizable value which ever is lower
Particulars Item Units Unit Cost Net Realizable Value LCNRV
Minolta 7 $175 $157 $157
Canon 11 142 176 $142
Vivitar 14 130 111 $111
Kodak 17 120 132 $120
So, the amount of ending inventory is
= 7 units × $157 + 11 units × $142 + 14 units × $111 + 17 units × $120
= $1,099 + $1,562 + $1,988 + $2,040
= $6,689
Answer:
26.42
Explanation:
A firm has an EPS of $2.08
The benchmark PE is 12.7
The growth rate is 3.8 percent
Therefore the estimated current stock price can be calculated as follows
= 2.08×12.7
= 26.42
Answer:
The correct entries would as follows:
Dr Organization/legal fees(3000*$4.5) $13,500
Cr Common stock($1*3000) $3,000
Cr paid in capital in excess of par($4.5-$1)*3000)) $10,500
Explanation:
The total cost incurred has increased to $13,500 since the stock needs to be recorded at its fair value on the date of the agreement and the approximate fair value is the market price.
As a result,legal fees expenses is debited with $13,500 while the common stock account is credited with par value of $1 per share and the excess over par value of $3.5 is credited to paid in capital in excess of par.
