Answer:
The value of stock = $10.567
Explanation:
We will solve it with the help of present value table, attached as follows:
Answer:
Royalty expense = $140,000
Explanation:
The royalty expense consists of 2 components.
A fixed amount of $60,000
A variable amount as 10% of sales.
Total royalty expense attributable to income statement is
Royalty expense = 60,000 + (800,000*0.10)
Royalty expense = $140,000
This is the amount deductible in income statement.
The copyright purchase of $15,000 is a company asset, recorded in balance sheet.
Hope that helps.
Answer:
$450,000
Explanation:
Sunk costs are costs that have already been incurred and are thus irrelevant in decision making.
The Book Value of $450,000 is a sunk cost because the costs have already been incurred.
The case given in the question is an example of “Bridges and
Barriers”. Bridges refer to factors that enable migration while Barriers refer
to the factors that inhibit migration. A good examples of Bridges and Barriers is
Learning a new language.
Answer:
a. They can include bonds and stocks not intended to be sold in the near future.
c. They can include assets not used in operations, such as investments in land.
e. They are reported with noncurrent assets on the balance sheet.
Explanation:
Long term investment or assets are those that are typically held in a company's balance sheet for many years. They can include assets such as land, equipment like machinery, buildings and vehicles.
They also include sticks and bonds that won't be used in the short term.
So long term investment are not cash equivalents because cash can be used in the short term.
Also it cannot be used within 3 - 12 months.
They are not easily sold as they sold so they are not considered marketable asset in the short run.
Long term investment is considered to be a non current asset as they last longer than a year on the balance sheet.
