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sdas [7]
3 years ago
8

Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in tha

t country. If expropriation is probable, a loss contingency should be:a. Disclosed but not accued as a liability
b. Disclosed and accued as a liability
c. Accued as a liability but not disclosed
d. Neither accrued as liability nor disclosed
Business
1 answer:
Anon25 [30]3 years ago
8 0

Answer:

b. Disclosed and accued as a liability

Explanation:

Expropriation occurs when the government or an authority takes property from its owner to use it publicly.

You might be interested in
What is true about the payments with closed-end credit?
denis-greek [22]

Answer:

C)They remain the same until the credit is paid off.

Explanation:

In a closed-end credit, borrower and lender agree on principal amount, interest rate and monthly payments. These features stay the same over time.

The most common types of closed-end credit are mortgages and car loans.

For example, if a person wants to buy a car on credit, they agree to pay a monthly amount, that includes both interest and principal payments, until the full amount is paid off in a specified date in the future. After the last payment, the right to ownership of the car is transferred from the borrower to the lender, closing the credit.

8 0
3 years ago
Eaton Tool Company has fixed costs of $340,400, sells its units for $80, and has variable costs of $43 per unit. a. Compute the
blsea [12.9K]

Answer and Explanation:

The computation is shown below:

But before reaching to the final answers, first determine the contribution margin per unit which is

a. Contribution margin per unit =Sales-Variable cost  

= $80 - $43

= $37 per unit

Now

Breakeven = Fixed expenses ÷ Contribution margin

= $340,400 ÷ $37

= 9,200 units

b.Contribution margin = Sales - Variable cost  

= $80 - $46

= $34 per unit

Now

New Breakeven = Fixed expenses ÷ Contribution margin

= $270,000 ÷ 34

= 7,941 units

3 0
3 years ago
Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in divi
lutik1710 [3]

Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

= 6.9/78

= 0.0885×100

= 8.85%

Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

= 5.65%

Hence the approximate real rate of return on this investment is 5.65%

6 0
3 years ago
Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets.
Zepler [3.9K]

Answer:

Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.

Explanation:

Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.

Download docx
8 0
3 years ago
Maker-Bot Corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. No di
AleksandrR [38]

Answer:

D) $130,000

Explanation:

We can compute this by calculating the total dividends payable to preferred stock holders each year.

Dividends payable = 10,000 * 90 * 0.10 = $90,000

Since the shares are cumulative, the total preferred dividend payable at the end of third year is = $90,000 * 3 = $270,000

So common share in dividend = Total paid - Preferred dividend cumulative

Common Dividend share = 400,000 - 270,000 = $130,000

Hope that helps.

5 0
3 years ago
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