Answer:
The correct option is B
Residual income = ($9000)
Explanation:
<em>Residual Income is measure of how much a division or a part of a business is able to generate over and above the company-wide opportunity cost of capital.</em>
A division with a controllable over and margin over and above the cost of fund is evaluated to be profitable .
Residual income = Controllable margin - (cost of capital(%)× operating assets)
Cost of capital = Target ROI
Residual income for Division X
= 36,000 - (15%× 300,000 )
= ($9000)
Answer:
Since the lease amount varies, we must calculate the annual rental income using the following formula:
annual rental income = {lease year 1 - (lease year 1 x 6/12) + [lease year 2(and beyond) x number of remaining contract years] / total number of contract years}
annual rental income = [$8,000 - ($8,000 x 6/12) + ($12,500 x 4)] / 5 years = {$8,000 - $4,000 + $50,000} / 5 years = $54,000 / 5 = $10,800
Answer: $2,890,426
Explanation:
= Cash received + Mortgage assumed - Points paid by Peyton - Broker's ,commission
= 1,867,200 + 1,120,320 - 22,406 - 74,688
= $2,890,426
Answer:
$175,000 asset and $55,000 liabiliy
Explanation:
The computation is shown below:
In the present balance sheet, the home should considered the following amounts
1. The current market value of the house i.e. $175,000
2. And, the home mortgage payment of $55,000 that we called as the liability
These two amount should be presented on the balance sheet
Hence, the above should be the answer
Answer:
Nominal, real
Explanation:
Nominal variables are measured on normal and ideal scales. Nominal values do not account for factors such as inflation that can cause value of an object to appreciate or depreciate.
Real variables on the other hand are those that take into account various factors that can change the value of something. For example of the value of a good was $300 and now due to inflation the relative value will decrease and might give $200. So the value of the item is reduced.
