Answer: $9000
Explanation:
Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:
Cost of equipment = $120,000
Less accumulated depreciation = $66,000
Less: Amount Devin sold equipment to Pepe = $45,000
Consolidated loss= $120,000 - $66000 - $45000
= $9000
Answer:
Penetration pricing is a pricing strategy where a company charges less than its competitors in order to entice its competitors' customers to patronise them instead.
Competitive pricing on the other hand will see a company charging the same price as its competitors.
Benefits of using Penetration pricing over Competitive
- Reduce competition - If the company engaging in penetration pricing is large enough with more influence in the market, charging less than competitors might lead to competitors leaving the market as the prices will be too meagre for them to cover costs.
- Market Dominance - using penetration pricing can lead to customers moving from the competitors to the company using penetration pricing thereby giving that company market dominance.
- Economies of scale - Penetration pricing allows the company to sell more quantity of its product which means that it will have to produce more and this will reduce average costs for the company.
Risks involved
- Price War - There is a risk of a price war if a company uses penetration pricing. A price war happens when a company reduces its prices and their competitors react by reducing their own prices as well. It might led to a situation where this continues until all the companies are making significant losses.
- Brand Image damage - Cheaper products are usually perceived as having lower quality. Reducing prices might see customers believing instead that the brand is poor and so they may avoid it.
- Attracts low loyalty - The customers gained through this strategies most often have little brand loyalty and when a better deal comes than the one they are being offered in that moment, they will leave.
Answer:
$16 million each year
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the Effect on Earnings in the Year After the Option are Granted by using following formula:-
Award’s Fair Value = Purchase Granted Option × Fair Value Per Option
=$16 million × $3
=$48 million
N Corporation granted executive stock option plan equally over the 3 years (Jan.1,2018 to Dec.31,2020) vesting date, reducing earning is
= Award’s Fair Value ÷ vesting years
= $48 million ÷ 3 years
= $16 million each year
Answer:
B) convertible preferred shares
Explanation:
These are the options for the question
A) adjustable rate preferred shares
B) convertible preferred shares
C) common shares
D) corporate bonds
From the question, we are given an instance whereby One of your new clients explains that she prefers investments paying income with a fixed rate of return, but also allows for the possibility of realizing greater gain potential. In this case She would likely
favor investments in convertible preferred shares. Convertible preferred shares can be regarded as corporate fixed-income securities whereby an investor is allowed to turn into particular number of shares of the common stock of the firm after or on a specific date.Convertible preferred shares gives room for the owner so that the shares for a fixed number of shares can be exchanged.