Answer:
The correct answer is $4,500.
Explanation:
According to the scenario, the given data are as follows:
Uncollectible Account receivable = $5,000
Account receivable balance = $100,000
Allowance for Doubtful Accounts = $500
Credit sales = $150,000
So, we can calculate the bad debt expense by using following formula:
Bad debt expense = Uncollectible Account receivable - Allowance for Doubtful Accounts
by putting the value, we get
Bad debt expense = $5,000 - $500
= $4,500.
Answer:
EPS = $4.50
diluted EPS = $2.46
Explanation:
no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.
common stock outstanding = 1,000 stocks
bonds shares (diluted) = 1,000 stocks
net income = $4,500
bond interest = $10,000 x 6% x (1 - 30%) = $420
diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46
Answer:
The correct answer is letter "B": anchoring.
Explanation:
Anchoring bias or focalism takes place when individuals make decisions driven by the first impression obtained on a certain matter. Under this situation, those individuals do not take well-educated decisions since there has not been an analysis of the pros and contras of picking that choice over others.
Answer:
After-tax cost $652
Explanation:
$652 = $800 [1 − (0.5 × 0.370)]. Half of the interest is not deductible because it was used to purchase tax-exempt securities.
