Answer:
$173
Explanation:
The computation of the salvage value at the end of year 5 is given below:
Cost of the asset $1,200
Multiply with the depreciation rate 5.76%
Book value at the 5 year end = $69
Resale value $200
gain on sales $131
Multiply with the Capital gain 21%
tax on gain $27
After tax gain on salvage value $173 ($200 - $27)
Answer:
$1.64 per share
Explanation:
The computation of Number of Shares for computing Diluted Earning per share is shown below:-
Proceeds expected = 5,300 × $6
= $31,800
No. of Shares re-purchased = $31,800 ÷ $11
= $2,891 (rounded)
Net Effect of Stock Option = 5,300 - $2,891
= 2,409 shares
Number of Shares for computing Diluted Earning per share = Outstanding shares + Net Effect of Stock Option
= 71,105 + 2,409
= 73,514
Diluted earnings per share for the quarter = Net income for the quarter ÷ Number of Shares for computing Diluted Earning per share
= $120,805 ÷ 73,514
= $1.64 per share
So, for computing the Number of Shares for computing Diluted Earning per share we simply applied the above formula.
Investment because u save up more money in what you want
