Answer:
$715,000
Explanation:
Taxable income$1,000,000
Subtract:Federal income taxes($210,000)
Regular tax gain from sale of asset ($150,000 – $100,000) ( 50,000)
E&P loss from sale of asset ($150,000 – $175,000)( 25,000)
Current E& P $715,000
Answer:
The market risk premium is 5.8%
Explanation:
Expected return = 12.25%
Stock beta = 1.25
Risk free rate = 5%
Expected return = risk free rate + stock Beta ( market risk − risk free rate)
12.25% = 5% + 12.5% ( rm− 5%)
0.1225 = 0.05 + 1.25 ( rm− 0.05)
0.1225 - 0.05 = 1.25 ( rm− 0.05)
0.0725 = 1.25 ( rm− 0.05)
0.0725 / 1.25 = rm− 0.05
0.058 + 0.05 = rm
rm = 0.108
Market Risk = 10.8%
Market Risk Premium = 10.8% - 5% = 5.8%
Answer:
1. $930,000
2. No
3. No
Explanation:
1. The computation of the goodwill amount is shown below:
= Purchased price - the fair market value of the net assets purchased
= $3,760,000 - $2,830,000
= $930,000
2. No goodwill should not be amortized as it is subjected to an impairment test at the end of the year.
3. This goodwill would not be reported as only purchased goodwill is recorded
Answer:
The correct general entry is,
Cash 1,600,000 Dr
Common Stock-$0.10 Par value 40000 Cr
Paid-ln Capital in Excess of Par—Common 1,560,000 Cr
Option c is the correct answer
Explanation:
The issuance of stock will mean an inflow of cash to the company as a result. The cash received will be equal to the number of shares issued multiplied by the value at which they are issued.
Thus, cash received will be = 400000 * 4 = $1600000
As the asset is increasing, the cash will be debited.
On the other side of the transaction, the issuance of stock is always recorded at the par value in the common stock account and any amount received in excess of par value is credited to the Paid-in-Capital in excess of par-Common Stock account.
Thus, Common stock will be credited by = 400000 * 0.1 = $40000
The remaining = 1600000 - 40000 = 1560000 will be credited to Paid-in-Capital in excess of par-Common Stock account.
Answer:
C
Explanation:
Fee-Sor-Service (FFS) is a payment model where services are unbundled and paid for separately. In health care, it gives an incentive for physicians to provide more treatments because payment is dependent on the quantity of care, rather than quality of care.
In Fee-Sor-Service (FFS), the provider is only paid for a designated number of services per fiscal year.
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