Answer:
John's capital gain is 50%
Explanation:
The dividends that John received are taxed as part of his gross income, but if he kept the UGA stock for more than a year and then sold it for a profit, his gain will be taxed as capital gains:
capital gain per stock = $15 (selling price) - $10 (purchase price) = $5
A $5 gain represents a 50% capital gain (= ($5 / $10) x 100)
Answer:
B.two IRRs
Explanation:
The internal rate of return is that return in which the net present value is zero, meaning that the initial investment is equal to the present value of the annual cash flows after taking into account the discount factor.
In mathematically,
NPV = 0 = Zero
It is used in the capital budgeting decision which determines the decision related to the project whether a project is accepted or not.
If the project changes for two times, then the project has two IRRs.
Answer:
$5,340
Explanation:
Gayne's corporation contribution margin ratio is 18%
= 18/100
= 0.18
The fixed monthly expenses is $51,000
The company sales for the month is $313,000
Therefore, the net operating income can be calculated as follows
= (Contribution margin ratio×sales)-fixed expenses
= (0.18× $313,000)- $51,000
= $56,340-$51,000
= $5,340
Hence the best estimate of the company's net operating income is $5,340
Answer:
DR Sales returns and Allowances ............................. $500
CR Accounts Receivable........................................................$500
Explanation:
Jepson returned $500 worth of goods so this would need to be accounted for by reducing the Accounts receivable amount by $500.
The returns will be accounted for in the Sales returns and allowances account which will be debited to reflect this.
