Answer:
C. Joan can raise the defense that she did not knowingly discharge fertilizer into the waterway
Explanation:
Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
Explanation:
Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.
It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.
Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.
Answer:
$240,000
Explanation:
National geographic is replacing an old printing machine with a new one
The old printing machine is sold at the price of $350,000
It has a net book value of $75,000
The income tax is 40%
= 40/100
=0.4
The first step is to calculate the taxable value
= $350,000-$75,000
= $275,000
Income tax= taxable value×tax rate
= $275,000×0.4
= $110,000
Therefore, the net from sales can be calculated as follows
= $350,000-$110,000
= $240,000
Hence the net from sale of National Geographic is $240,000
Answer and Explanation:
The computation is shown below:
The following formula should be used
= P/E ratio × EPS × (1 + growth rate)^n
umber of years
a. The stock price in four years is
= $19.35 × $2.22 × (1 + .06)^4
= $54.23
b. The stock price in four years in the case when the P/E ratio fall to 16
= $16 × $2.22 × (1 + .06)^4
= $44.84
We simply applied the above formula so that the correct price could come
And, the same is to be considered
Answer:
(a) <u><em>normal</em></u>
<em>1.</em><u><em> Less than 1 but greater than 0
</em></u>
Explanation:
<em>Estimating demand elasticity of income is the percentage change in demand quantity divided by a percentage change in income. </em>
Therefore, for a normal good, its demand's income elasticity would be positive.
In this scenario the demand income elasticity is <em>1/25 = 0.4. </em>
So here the truck is indeed a normal good because the value is positive.
