Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income <u>$46,200</u>
Beginning adjusted retained earnings for year 2017 <u>$926,200</u>
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
Answer:
$41.66
Explanation:
Let us assume the dividend in year n be denoted by Dn and the Stock price by Pn
Given that,
D0 = $1.50
Now
Growth rate for next 3 years
g1 = 15%
D1 = D0 × (1 + g1)
= 1.50 × (1 + 0.15)
= 1.725
D2 = D1 × (1 + g1)
= 1.725 × (1 + 0.15)
= 1.984
D3 = D2 × (1 + g1)
= 1.984 × (1 + 0.15)
= 2.282
Subsequent Growth rate = g2 = 4%
Now
D4 = D3 × (1 + g2)
= 2.282 × (1 + 0.04)
= 2.373
So, According to Gordon's Growth Rate,
P3 = D4 ÷(r - g2)
P3 = 2.373 ÷ (0.09 - 0.04)
= $47.46
Now
Value of Stock now is
= P0
= D1 ÷ (1 + r) + D2 ÷ (1 + r)^2 + D3 ÷ (1 + r)^3 + P3 ÷ (1 + r )^3
= 1.725 ÷ (1 + 0.09) + 1.984 ÷ (1 + 0.09)^2 + 2.282 ÷ (1 + 0.09)^3 + 47.46 ÷ (1 + 0.09)^3
= $41.66
the answer is c i hope this helps
mark brainliest
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
Answer:
d. people face trade-offs.
Explanation:
The production possibility frontier shows all the combinations of two goods an economy can produce when all its resocurces are fully employed.
At one extreme of the curve, the highest possible amount of one good is produced while zero quantity of the second good is produced . To produce more quantity of the second good, one has to produce less quantity of the first good. This illustrates trade off.
I hope my answer helps you
