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1 year ago

8

A company discarded a display case it had originally purchased for $8,000. the case had $7,200 worth of accumulated depreciation

. the company should recognize a (an):_______.

1 answer:

quester [9]1 year ago

3 0

8000-7200=800

800 gain

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Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common sto

ANTONII [103]

Answer:

16.30%

Explanation:

Calculation for what the percentage of the company's capital structure consists of debt

Using this formula

rs=D1/P0+g

First step is to find the D1 using this formula

D1=(1+Dividend expected grow constant rate) *+Dividend per share

Let plug in the formula

D1=(1+0.07)*$2.00

D1=1.07*$2.00

D1=$2.14

Now let find the percentage of the company's capital structure Using this formula

rs=D1/P0+g

Let plug in the formula

rs=$2.14/$23.00+0.07

rs=0.09304947+0.07

rs=0.1630*100

rs=16.30%

Therefore the percentage of the company's capital structure consists of debt will be 16.30%

5 0

3 years ago

Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued

Mila [183]

Answer:

The Journal Entry is shown below in the explanation section

Explanation:

The first step to take is to make use of the Journal entry.

Journal Entries for issuing Bonds

1 May Cash 800,000

Bonds Payable 800,000

1 Nov Interest expense 24,000

Cash 24,000

(800,000* 6%*6/12)

31 Dec Interest expense 8000

Interest Payable 8000

(800,000* 6%* 2/12)

3 0

3 years ago

Which of the following statements is true?-direct costs can easily be traced to a cost object; indirect costs cannot be-both dir

Andru [333]

Answer: Statement A

Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.

Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.

.

From the above explanation we can conclude that statement A is correct.

5 0

3 years ago

Walmart reduced waste in packaging by 3,500 tons by __________.

mash [69]

Walmart noticed that the packaging in some of their products only led to waste. Based from this observation, Walmart established a new policy requiring its toy suppliers to reduce the packaging of their products by one square-inch. Just from this reduction alone, Walmart's waste from packaging alone decreased by 3,500 tons.

6 0

3 years ago

The average ticket price for a concert at the opera house was $50. The average attendance was 2500. When the ticket price was r

Ber [7]

Answer:

The price per ticket should be $37.5

Explanation:

First we need to determine the change in demand (attendance) as a result of every $1 increase in the price of ticket.

The ticket price increased by $4 (from 50 to 54) and the demand fell by 400 (from 2500 to 2100). The change per dollar is, 400 / 4 = 100.

So, for every $1 increase in price, demand falls by 100.

The revenue is calculated by multiplying price by quantity demanded. Revenue equation will be,

Let x be the change in price from $50.

Revenue = (50 + x) * (2500 - 100x)

Revenue = 125000 - 5000x + 2500x - 100x²

Revenue = 125000 - 2500x - 100x²

To calculate the price that maximizes the revenue, we need to take the derivative of this equation.

d/dx = 0 - 1 * 2500x° - 2 * 100x

0 = -2500 - 200x

2500 = -200x

2500 / -200 = x

-12.5 = x

Price should be 50 - 12.5 = 37.5

At price $37.5 the revenue of the Opera House is maximized.

6 0

3 years ago