Answer:
Economic value added = $1,250,000
Explanation:
Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital
Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]
Economic value added = ($4,000,000 * 0.65) - $1,350,000
Economic value added = $2,600,000 - $1,350,000
Economic value added = $1,250,000
Answer:
AFS 2004 market price decline exceeded 2005 market price recovery
No No
The security cannot be classified as available-for-sale because the unrealized gains and losses are recognized in the Income Statement. Unrealized gains and losses on available-for-sale securities are recognized in owners' equity, not earnings.
The second part of the question is somewhat ambiguous. The 2004 price decline could exceed or be exceeded by the 2005 price recovery. The loss in the first year is not related in amount and does not constrain the realized gain in the second year.
The way to answer the question is to read the right column heading as implying that the earlier price decline must exceed the later price recovery. With that interpretation, the correct answer is no.
For example, assume a cost of $10 and a market value of $4 at the end of the first year. An unrealized loss of $6 is recognized in earnings. During the second year, the security is sold for $12. A realized gain of $8 is recognized-the increase in the market value from the end of the first year to the sale in the second year. Thus, the market decline in the first year did not exceed the recovery in year two. (It could have exceeded the recovery in year two but there is no requirement that it must.)
Explanation:
Answer:
c. $24,850
Explanation:
A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49
; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950
The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs
Stock A = 100 Shares x fair value end of year of $51 = 5,100
Stock B = 200 Shares x fair value end of year of $49 = 9,800
Bond @ Fair value end of year...........................................= 9,950
Total............................................................................................$24,850
Answer:
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.
Explanation:
Answer:
A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000
B. Asset side in increased and decreased
C. Asset and liability will increase by $11,000
D. Asset will increase
E. Asset will increase
F. Asset will increase and decrease by $5,800
G. Asset will decrease
H. Asset will increase
I. Liability will decrease
J. Asset and capital will decrease by $1,200
Explanation:
Accounting equation is Asset = Liabilities + Capital
Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.
