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4 years ago

You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?

Business

1 answer:

Irina18 [472]4 years ago

7 0

Answer:

Original cost of the stock = $23.16

Explanation:

Original cost of the stock = Selling price of stock / ( 1 + r )^n

Original cost of the stock = $50 / (1+8%)^10

Original cost of the stock = $50 / (1.08)^10

Original cost of the stock = $23.16

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Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and

Karo-lina-s [1.5K]

Answer:

Bond interest expense = $2,290

so correct option is b. $2,290

Explanation:

given data

Bond issued = $50,000

Interest rate = 10%

interest semi-annually = 5%

time period = 5 year

to find out

amount of bond interest expense

solution

we get first Cash interest payment that is here

Cash interest payment = $50,000 × 5%

Cash interest payment = $2,500 ....................1

and Bond premium will be

Bond premium = $52,100 – $50,000

Bond premium = $2,100 .......................2

we know interest paid semi annually so time period will be = 10

so Amortization of bond premium will be here as

Amortization of bond premium = $\frac{2100}{10}$

Amortization of bond premium = $210 .................3

so Bond interest expense will be calculate as

Bond interest expense = Cash interest payment - Amortization of bond premium .......................4

put here value

Bond interest expense = $2,500 - $210

Bond interest expense = $2,290

so correct option is b. $2,290

8 0

4 years ago

The Fortunato Corp.'s inventory at Dec 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary

AleksandrR [38]

Answer:

$405,000

Explanation:

The computation of the ending inventory reported is shown below:

Inventory on December 31,2018 $325,000

Add: Goods purchased from a vendor i.e shipping point $30,000

Add: Goods sold FOB destination to customer $38,000

Add: consignment by Brecht Inc $12,000

Ending inventory reported $405,000

In the above cases, the added items indicates the ownership is transferred to buyer , received by buyer and remains with the buyer

4 0

3 years ago

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

8 0

3 years ago

The morgan company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and pr

Leona [35]

<span>The morgan company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. this is an example of departmentalization by function

</span>

3 0

3 years ago

A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value

svet-max [94.6K]

Answer:

Therefore Expected Value of the information = $65,000+$62,000 - $10,000 = $117,000

Explanation:

If the market research survey is available for $10,000.

Using a decision tree analysis, it has been found that the expected monetary value with the survey is $65,000. The expected monetary value with no survey is $62,000.

<u>Then the expected value of the information from this sample is the expected value of each outcome and deducting the costs associated with the decision</u>

Therefore Expected Value of the information = $65,000+$62,000 - $10,000 = $117,000

7 0

3 years ago