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Anarel [89]
3 years ago
7

Oak Inc. has the following information regarding its assets: Book Value Estimated Cash Flows Fair Value Equipment $35,000 $30,00

0 $28,000 Building $68,000 $70,000 $65,000 Patent $30,000 $34,000 $32,000 What amount of loss should be recorded due to asset impairment?a. $10,000.b. $9,000.c..$8,000.d. $7,000.
Business
1 answer:
ExtremeBDS [4]3 years ago
8 0

Answer:

d. $7,000.

Explanation:

The computation of the loss recorded due to asset impairment is shown below:

= Book value - fair value

= $35,000 - $28,000

= $7,000

If we consider the building and the patent we see that the estimated cash flows are  more than the book value, so no loss on impairment should be taken place

Therefore, only $7,000 should be recorded as a loss on impairment of the asset

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ASAP Please help and thank you!
valina [46]

Charles' human life value will be $249,200.

<h3>What is the process of calculating life value?</h3>

The process of calculation of life value in an insurance is that first of all determine the current income and than subtract the expense, premiums of insurance, and payment of income tax. The third step is recall the number of years of earning which are remaining before the age of retirement .The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

The third step is recall the number of years of earning which are remaining before the age of retirement and than find the discounting factor rate including inflation.The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

Therefore, Charles' human life value will be $249,200.

Learn more about life value here:

brainly.com/question/14298816

#SPJ1

5 0
1 year ago
At a price $4 for good x, a firm is willing to supply 1,400 units of x. for a price of $5 for good x, the firm is willing to sup
KIM [24]
100 unit difference
7 0
3 years ago
4. what influence may rising house prices have on inflation?
Talja [164]

Answer:

Explanation:

There is a correlation between inflation and house prices. ... When interest rates are low, buying homes can be more affordable and increase the demand for homes. If the supply of homes remains constant and the demand increases, then the prices of homes will increase.

7 0
2 years ago
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40
Sergeu [11.5K]

Answer:

$4 per share

Explanation:

The formula to compute the regular yearly dividends in the future is shown below:

= Free cash flow ÷ outstanding shares

= $40 million ÷ 10 million shares

= $4 per share

It shows a relationship between the free cash flow and the outstanding shares

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
What is the present value of the following series of cash flows discounted at 12 percent:
Ksju [112]

Answer:

The present value of the following series of cash flows discounted at 12 percent is:

$171,890

Explanation:

a) Data and Calculations:

Discount rate = 12%

$40,000 now;

$50,000 at the end of the first year;

$0 at the end of year the second year;

$60,000 at the end of the third year; and

$70,000 at the end of the fourth year

Future Value  Discount Factor   Present Value

$40,000                 1                      $40,000

$50,000                 0.893             $44,650

$0                           0.797              $0

$60,000                 0.712              $42,720

$70,000                 0.636             $44,520

Total present value                      $171,890

b) The present value is the discounted cash flow from series of future cash flows.  The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.

6 0
3 years ago
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