Answer: Option C
Explanation: In simple words impairment loss means there is reduction in the goodwill account. It is calculated as follows.
1. First the fair value of goodwill is compared with its carrying value.
2. If the fair value comes to be less than carrying value then impairment loss is calculated by subtracting fair value from carrying value.
Thus, impairment loss will be calculated only if the fair value of the asset is less than its carrying value.
Answer:
d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.
Explanation:
Opportunity cost in decision making has to do with an alternative foregone. If you make a choice of an alternative over another, therefore the extrinsic cost which is the benefit you will not have, for choosing that alternative is the opportunity cost.
Applying the above to the given scenario, it does not matter the range of increase in the college cost or room and board cost if she did not attend college; It is a general conclusion and a fact that an increase in the level of opportunity costs, it will reduce Maureen's incentive to want to go to college.
Answer:
I believe the answer is A
Answer:
Net cash flow as at the year end= $22,100
Explanation:
The statement of cash flows for Moore shall be calculated as follows:
Cash balance as at January 1, 2018= $54,000
Cash inflow from operating activities= $35,600
Cash outflow from investing activities= ($43,000)
Cash outflow from financing activities= ($24,500)
Net cash flow as at the year end= $22,100
Answer:
the discount rate for this option implies to be 6.26%
Explanation:
From the given information; we are to determine the discount rate for the cash option.
Let r represent the discount rate and represent the cash option
The the discount rate for the cash option is related to the sum of all the Present Value of the cash flows together with the discount rate.
r = discount rate = ???
for the next 29 years.
Mathematically;
If discount rate (r) = 1%; we have:
If the discount rate r= 2% ;
If the discount rate r= 4% ;
If the discount rate r = 6%
PV = 123.5396349 ≠ 120.504 (but that was so close)
If the discount rate r = 6.26%
PV = 120.4722 million which is approximately equal to $120.504 million
Thus ,the discount rate for this option implies to be 6.26%