Answer:
5,110,000 and 5,170,000.
Explanation:
earnings per share EPS = (net income - preferred dividends) / weighted average of outstanding shares
- 4,800,000 at the beginning of the year
- 200,000 issued April 1 = 200,000 x 9/12 = 150,000
- 480,000 issued September 1 = 480,000 x 4/12 = 160,000
weighted average outstanding shares = 4,800,000 + 150,00 + 160,000 = 5,110,000
diluted shares = ($6,000,000 / $1,000) x 40 x 3/12 = 60,000
diluted EPS = (net income - preferred dividends) / (weighted average of outstanding shares + diluted shares)
weighted average of outstanding shares + diluted shares = 5,110,000 + 60,000 = 5,170,000 shares
Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
Answer:
pricing
Explanation:
pricing is the amount you pay a buissness for their product.
Answer:
It will be counted as investment in 2016 and negative investment in 2017.
Explanation:
National income refers to the total value of a country's final output of all new goods and services produced in one year. There are various ways of measuring national income, e.g. GDP, GNP, etc
Therefore, following national income accounting practices, the car would be counted as part of the investments and GDP of 2016, and negative investment in 2017, because that was the year in which it was produced.
