Answer:
Correct option is C
Explanation:
Total E&P = $ 160000
Total voting Right Sold = 50/ (100+100) = 25%
Reduction of E& P due to exchange = Total E&P*Total voting Right Sold
Reduction of E& P due to exchange = 160000*25%
Reduction of E& P due to exchange = 40000
Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised
Reduction of E& P Lower of 40000 or (50*1000)
Reduction of E& P Lower of 40000 or 50000
Answer
C. A reduction of $40,000 in E&P because of the exchange.
Answer:
The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
The break-even in monthly dollar sales is closest to $578,100
Explanation:
The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
<u></u>
<u>Given that </u>
<u>Selling price of the product=</u>$185.00 per unit
variable cost=$55.50 per unit
fixed expense=$404,670 per month
<u></u>
= ($185.00 per unit − $55.50 per unit) ÷ $185.00 per unit
= $129.50 per unit ÷ $185.00 per unit = 0.70
<u>Dollar sales to break even = Fixed expenses ÷ CM ratio
</u>
= $404,670 ÷ 0.70
= $578,100
The break-even in monthly dollar sales is closest to $578,100
Chapter 12 is meant primarily for: A. Farmers
Answer:
6.06%
Explanation:
The computation of the rate of return is shown below:
Given that
NPER = 20 years
PV = ($280,000 - $80,000) = $200,000
PMT = $0
FV = $75,000 × PVIFA factor at 10% for 21 years
= $75,000 × 8.6487
= $648,652.50
The following formula should be applied
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 6.06%
