Answer:
$90 million
Explanation:
Calculation to determine the effect on earnings (net income) in the current year after the shares are granted to executives
First step is to calculate the fair value of shares represented by RSUs
Using this formula
Fair value of shares represented by RSUs=Fair value per share*Shares represented by RSUs shares granted
Let plug in the formula
Fair value of shares represented by RSUs=$12 *30 million
Fair value of shares represented by RSUs=$360 million
Now let calculate the Effect on earnings
Using this formula
Effect on earnings=Fair value of shares represented by RSUs/Vesting period
Let plug in the formula
Effect on earnings=$360 million/4 years
Effect on earnings=$90 million
Therefore the effect on earnings (net income) in the current year after the shares are granted to executives is $90 million
Answer: True.
Explanation:
Managing technology are ways in which a business organization can integrate technology into their business operations to improve efficiency and increase profitability.
Appointing a chief technology officer to oversee the technological aspects of a business operation is a way of managing technology to improve a business.
The computation is shown below:
The amount which is to be recovered is equal to the purchase amount i.e $650,000
The present value of bargain purchase option is
= $150,000 × Present value factor at 6% for 6th period
= $150,000 × 0.704961
= $105,744
The amount to be recovers through periodic lease payment is
= $650,000 - $105,744
= $544,256
And, the annual lease payment is
= Recovered amount through periodic lease payment ÷ Cumulative Present value factor for annuity due at 6% for 6 periods
= $544,256 ÷ 5.212364
= $104,416