Answer:
$867,832
Explanation:
Calculation for the market value of the shop's equity
Equity Market value = $819,000 + $65,000 + 1.1($319,000) + .96($21,700) + $26,800 − $414,700
Equity Market value =$819,000 + $65,000 + $350,900+$20,832+$26,800 − $414,700
Equity Market value= $867,832
Therefore the market value of the shop's equity will be $867,832
Answer:
Accumulated depreciation at the end of year 5 is $12 million
Explanation:
The relevant number of years with which to depreciate the asset is from 1 to 10, however these numbers are taking in descending in order to have more depreciation in early years and less in later years.
Years relevant weighting number
1 10
2 9
3 8
4 7
5 6
6 5
7 4
8 3
9 2
10 <u> 1</u>
Total weighting 55
The accumulated depreciation at the end of year 5 would depreciation from year 1 to year 5 calculated as shown below:
(10+9+8+7+6)/55*$16.5 million=$12 million
In other words, at the end of year $12 million would have been charged as expense to income statement.
Answer:
Recognize the assessments as assessments receivable and revenue.
Explanation:
Practically, this will result in a receivable in the reserve fund, if the amounts are not received when due.
This could be seen when an/a corporation may decide on the amount of an assessment years before the cash is been used.
But cannot really obtain the revenue at the time of the decision, since the corporation can change its decision up until the day the amount is due. Also there are no specific parties being assessed, until the owner on record is known on the day the assessment is due, also the assessment should be recognized as revenue of the reserve fund when due.
Answer:
Preference dividend = $2 x 100,000 shares x 2 years
Preference dividend = $400,000
The dividend paid to common stockholders = $600,000 - $400,000
= $200,000
Explanation:
Dividends paid on preference shares are cumulative in nature because preference shares are fixed income securities. The dividends not paid last year would be paid this year. This is the rationale behind the multiplication of preference dividend by 2 years.
The dividend paid to common stockholders is the difference between the total dividend and dividend paid to preferred stockholders.
