Quince's right to hold ray liable for any damages he has to pay is the right of indemnification. The correct answer is letter A. Indemnification is defined as a contractual obligation by which one party is obliged to compensate the loss by which the associated party has experienced because of the act done by the other.
Answer:
gross profit under FIFO = $40,570 - $25,220 = $15,350
gross profit under LIFO = $40,570 - $26,340 = $14,230
gross profit under weighted average = $40,570 - $26,240 = $14,330
gross profit under specific id. = $40,570 - $26,070 = $14,500
Explanation:
sales revenue = (290 x $86.60) + (160 x $96.60) = $40,570
COGS under FIFO:
130 x $51.60 = $6,708
160 x $56.60 = $9,056
80 x $56.60 = $4,528
80 x $61,60 = $4,928
total COGS = $25,220
COGS under LIFO:
240 x $56.60 = $13,584
50 x $51.60 = $2,580
160 x $63.60 = $10,176
total COGS = $26,340
COGS under weighted average:
weighted average = [(130 x $51.60) + (240 x $56.60) + (100 x $61.60) + (180 x $63.60)] / 650 = $58.31
450 x $58.31 = $26,239.50 ≈ $26,240
COGS under specific method:
80 x $51.60 = $4,128
210 x $56.60 = $11,886
60 x $61.60 = $3,696
100 x $63,60 = $6,360
total COGS = $26,070
Answer:
$ 1,956,306.00
Explanation:
The issue price of the bonds issued is the present value of all cash flows promised by the bonds discounted using the market interest rate of 11%.
The cash flows which comprise of annual coupon payment for nine years as well as the repayment of the face value at the end of the ninth year as computed thus:
annual coupon payment=face value*coupon rate=$2,200,000*9%=$198,000.00
The present value of $198,000 for nine years= 198,000*5.5370=$ 1,096,326
The present of $2,200,000 at the end of nine years=0.3909*2,200,000=$ 859,980.00
Total present values=$ 859,980+$ 1,096,326=$1,956,306.00
Answer:
Option A is the better choice of the two given any positive rate of return.
Explanation:
