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PIT_PIT [208]
3 years ago
9

A company failed to record unrealized gains of $21 million on its trading security investments. Its tax rate is 40%. As a result

of this error, total shareholders' equity would be:______.
a) Understated by $12.60 million
b) Understated by $21.00 million
c) Understated by $8.40 million
d) Unaffected
Business
1 answer:
castortr0y [4]3 years ago
8 0

Answer:

A) Understated by $12.60 million

Explanation:

Given that,

Unrealized gains = 21 million

Tax rate = 40%

Total shareholders equity therefore

= 21,000,000 × (1 - 0.40)

= 21,000,000 × 0.60

= $12,600,000

Therefore, total equity will be understated by $12.60 million

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On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding 4%, interest paid annually on
shutvik [7]

Answer:

B. $15,556

Explanation:

As given in the question

Face value of bond = $400,000

Carrying value of bond = $388,900

Discount from par value = $11,100

Coupon rate = 3%

Bond yielding rate = 4%

Interest revenue for the year = Carrying value of bond x Bond yielding rate

Interest revenue for the year = 388,900 x 4%

Interest revenue for the year = $15,556

The correct option is B. $15,556.

8 0
3 years ago
How frequently is the value of insurers variable sub accounts normally calculated
Dennis_Churaev [7]

Answer:

Everyday because the ever-increasing complexity of our securities laws has led to a great deal of confusion among investors over the differences between mutual funds and variable annuity sub-accounts.

Explanation:

That's the answer.

8 0
2 years ago
The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain. Art
Elodia [21]

Answer:

It can purchase at most, $18.13 per share.

Or 72.52 millions for the total 4,000,000 shares

Explanation:

We are given with  the present value of the merger at Craftworks discount rate. The shares can be purchase at most at the same level of the present value of the increase in the free cash flow.

That way, the net present value will be zero and the merger will yield the 16% required.

72,520,000 Millions

 4,000,000 shares outstanding

price per share 18.13

The crafworks shares can be purchase at most for 18.13 above this, it would yield the 16% required

Currently the share are at 16.25 so it could be possible to do the take-over

6 0
3 years ago
Career In K12 if you get it right I will give brainlist
malfutka [58]

#3: Face-to-face jobs in the health-care field can consist of nurses and doctors. They can be considered face-to-face because you interact with patients and various people and your work is hands on. Someone who is behind the scenes could be a receptionist at a doctors office or hospital or a medical biller. This can be considered a behind the scenes type job since it's non clinical and doesn't provide direct treatment, they simply help out the people that do provide direct treatment (face-to-face).

7 0
3 years ago
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assem
Ivahew [28]

Answer:

Results are below.

Explanation:

Giving the following information:

Supervisor salaries $117,000 per month

Depreciation $21,000 per month

Direct labor rate $15 per hour

Cabinets per hour= 60/20= 3

<u>We need to determine the flexible budget for different production levels:</u>

<u>12,000 units:</u>

Total direct labor hours= (12,000 / 3)= 4,000 hours

Total variable cost= 4,000*15= 60,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $198,000

<u>15,000 units:</u>

Total direct labor hours= (15,000 / 3)= 5,000 hours

Total variable cost= 5,000*15= 75,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $213,000

<u>18,000 units:</u>

Total direct labor hours= (18,000 / 3)= 6,000 hours

Total variable cost= 6,000*15= 90,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $228,000

3 0
3 years ago
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