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Vlada [557]
3 years ago
7

The capital impairment restrictions are established to​ ________. A. provide sufficient safety to equity holders B. constrain th

e firm to paying dividends which do not require additional borrowing C. provide a sufficient equity base to protect​ creditors' claims D. reduce dividends equal to or below the current earnings level
Business
1 answer:
Paha777 [63]3 years ago
7 0

Answer:

C. provide a sufficient equity base to protect​ creditors' claims

Explanation:

  • The capital impairments are when a company losses its asset and s a sort of restricting that is established to give a sufficient base to the protector credit claims as to when the dollar dividends and adjustment in earnings increases.  
  • The dividend policy will not affect the total values of the forms issued capital and thus the capital impairment will be minimized in a most possible manner.
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Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule
Alex

Solution :

Depreciation rates   16.67%      16.67%    16.67%     16.67%      16.67%      16.67%

(books)

Depreciation        $100000  $100000 $100000  $100000  $100000  $100000

(books)

Depreciation        $35000    $35000    $35000   $35000   $35000  $35000

tax shield (books)

Depreciation rate   20%            32%         19.20%      11.50%      11.50%     5.80%

(tax)

Depreciation       $120000  $192000   $115200  $69000  $69000  $34800

(tax)

Depreciation     $42000   $67200      $40320    $24150     $24150   $12180

tax shield (tax)

6 0
3 years ago
James Turbyfil purchased 100 shares of IBM for $72. James also paid $55 commission. What was the total purchase price for this t
alexgriva [62]

Answer:

$7,255

Explanation:

The computation of the total purchase price is shown below:

= Number of shares purchased × par value per share + commission paid

= 100 shares × $72 + $55

= $7,200 + $55

= $7,255

The Number of shares purchased × par value per share is also known as total purchase value

We simply calculate the total purchase value and then added the commission paid so that the accurate value can come

5 0
3 years ago
An example of consumer spending when calculating the GDP using the expenditures approach is _____.
fredd [130]

purchase of weapons for the military

5 0
2 years ago
For high school graduation, Ryan’s family is giving him a choice between two presents that are both worth $900. He can choose ei
yulyashka [42]

Answer: The Mexican trip with his best friends

Explanation:

Ryan cannot choose both options and thus has to make a decision of which option to take. Therefore he automatically sacrifices the other option. This type of decision is relevant and is known as a relevant cost. Relevant costs are costs that differ between alternatives, and thus influence the decision that you will make.

Opportunity cost is a type of relevant cost. This is the option that is given up / sacrificed when one option (laptop) is chosen over another (Mexican trip). In this case the opportunity cost is the Mexican trip when the laptop is chosen.

3 0
3 years ago
Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250).
Yanka [14]

Answer:

Ending Inventory  $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.  

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.  

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.  

Income Statement  

Sales revenue        $ 300,000  

Cost of goods sold  -$ 171,000  

Gross Profit            $ 129,000 43%

Beginning Inventory  $ 60,000

Purchases                  $ 175,000

Cost of goods sold  -$ 171,000

Ending Inventory    $ 64,000

7 0
3 years ago
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