Answer:
The Journal entries are as follows:
(i) Sale of Equipment
Cash A/c Dr. $20,300
Accumulated Depreciation A/c Dr. $22,500
To Equipment $40,000
To Gain $2,800
(To record the sale of equipment)
(ii) Sale of Equipment
Cash A/c Dr. $12,700
Accumulated Depreciation A/c Dr. $22,500
Loss A/c Dr. $4,800
To Equipment $40,000
(To record the sale of equipment)
Workings:
Accumulated Depreciation = [(40,000 - 2,500) ÷ 5] × 3 years
= 7,500 × 3 years
= $22,500
Answer:
26500.
Explanation:
Given: Sales of January, February and March.
Beginning inventory is 12000.
Company´s ratio of inventory to future sales is 45%.
Formula; unit to be produced= 
First step: finding February´s budgeted sales
Next months (February) budgets sales= 
Now, putting values in the formula to find unit to be produced.
Unit to be produced in January= (
∴ Unit to be produced in the month of January is 26500.
Answer:
No, the cost of the annual premium for 10 years was less than the accident claims
Explanation:
Since in the question it is mentioned that the annual premium is $1,200, $200,000 is the bodily injury coverage and $100,000 should be the property damage coverage
Also the $40,000 and $20,000 represent the medical cost and the car damage
So here the cost should not outweight the benefit of the transferring the risk as the annual premium cost for ten years should be lower than the accident claims
Answer:
(C) Higher.
Explanation:
The computation of the present value in both the cases are as follows:
In the first case
Given that
Assume the par value i.e. future value be $1,000
PMT = $1,000 × 9% = $90
RATE = 9%
NPER = 7
The formula is shown below
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $863.09
In the second case
Given that
Assume the par value i.e. future value be $1,000
PMT = $1,000 × 9% = $90
RATE = 9%
NPER = 6
The formula is shown below
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $876.66
So as we can see that the price of the bond would increased
Answer and Explanation:
The given values are:
Debt obligation
= $36 million
Market value
= $81 million
Outstanding shares
= $10 million
(a)...
Net Assets of the firm will be:
= 
= $
Now, the current share price will be:
=
= $
(b)...
Number of shares to be issued to repay debt obligation will be:
=
= $
(c)...
The total number of outstanding shares will be:
= 
= $
Now,
The Current share price will be:
= 
=
= $