Answer:
Total loss = 3,592.1053
Explanation:
Given:
Income from rent (For 45 days) = $9,000
Personal use = 12 days
Mortgage = $8,000
Property taxes = $2,000
Utilities = $1,200
Maintenance = $750
Depreciation = $4,000
Computation:
Total Allocated expenses = 45 days / 57 days [$8,000 + $2,000 + $1,200 + $750 + $4,000]
Total Allocated expenses = 45 / 57 [15,950]
Total Allocated expenses = $12,592.1053
Total loss = Total Allocated expenses - Income from rent
Total loss = $12,592.1053 - $9,000
Total loss = 3,592.1053
Answer:
Correct option is <u>Probable and the amount can be reasonably estimated.
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Explanation:
As per accounting standards on Contingent liabilities, any liability which is likely to be incurred and which can be estimated effectively and reliably, shall be recorded in the books.
If it is probable but cannot be estimated, then a journal entry may not be recorded, but a foot note may be made.
If contingent liability is only possible (but not probable) only a foot note is required.
If contingent liability has remote possibility of occurrence, then neither an entry to record the liability nor a footnote is required.
Answer:
Yank appreciates in relation to Sock
Explanation:
A contractionary monetary policy either results in increased interest rates in New Yorkland or reduced money supply or both.
Increased interest rated would mean that people would save more to take advantage of an increased saving rate. This would cause people to save money and thus reduce the supply of money. The law of demand and supply suggests that lesser supply would up the price that is it would appreciate. This is also true as people in Bostonia may also want to save in New Yorkland thus reducing the supply further as they demand more Yank.
Reducing the money supply any other way would mean as both countries are trade partners there will be demand for Yank but as supply is constricted, it would again appreciate.
Hope that helps.
Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = 
=
= 29.69 ≈ $29.70
Answer:
b. $10,000 and $25,000
Explanation:
For computing the the book value of an asset
, first we have to determine the depreciation expense which is shown below"
So, under the straight-line method, the depreciation expense would be
= (Original cost - residual value) ÷ (useful life)
= ($45,000 - $5,000) ÷ (4 years)
= ($40,000) ÷ (4 years)
= $10,000
For two years, the depreciation would be
= $10,000 × 2 years
= $20,000
In this method, the depreciation is same for all the remaining useful life
Now the book value would be
= Acquired value of an asset - accumulated depreciation
= $45,000 - $20,000
= $25,000
