Answer:
addresses when and how revenue should be recognized in contracts that provide both goods and service to customers.
Explanation:
ASC 606 is a new standard that provides guidance on revenue recognition to the companies that provide goods and services to its customers. This standard is for both public and private entities. Earlier there were some variations in the revenue recognition process across different companies. The new standard has now simplified standardization in financial reporting.
How does a subsidy affect supply?
A subsidy by nature increases the purchasing power of the individual or class it is awarded to. It's like free money that can only be spent on certain things.
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
Answer:
$69
Explanation:
Calculation for Central Park's taxable income
Pretax accounting income $80
Less Temporary differenceDepreciation (15)
($35 – $20)
Bad debt expense $4
($6 – $2)
Taxable income$69
($80-$15+$4)
Therefore Central Park's taxable income will be $69
6 lollipops.
3 candy bars.
1 candy bar and 4 lollipops.
2 candy bars and 2 lollipops.
