Answer:
Option C is correct.
Cash basis $0
Accrual Basis $24,000
Explanation:
The reason is that under the cash basis, the company would record revenue of $72,000 in the first year which ends on 31 Dec, 2021. And on next two year, there is no revenue recorded under cash basis accounting. But under accrual basis, the expenses and associated revenues must be recorded when they are realized. In the first year the realized amount would depend on the number of months the property was in possession of the Rent Inc. If the number of months that the property was in possession was 12 months then the rental expenses realized would be $24,000 ($72000*12/36). So the correct option would be option C.
Answer:
<u><em>Unsystematic risk</em></u>
Explanation:
This risk is inherent in a specific company or industry. Then diversification helps to avoid this risks as investments are made in different companies and industries.
Managerial capitalism posits that dominant CEOs would no longer run businesses but instead hired employees would run the businesses as a new class of professional CEOs.
Answer:
33.3%
Explanation:
Cost of one common stock =$12
Cost of 5 common stock = $60
Price of preferred stock = $75, which is more than $60
Hence, it would not make sense to convert the preferred stock shared into common stock as of now.
Now, if P is $20, then price of 5 stocks:
= 5 × 20
= $100
Hence, the Preferred stock price must increase to at least $100 otherwise there will be arbitrage opportunity.
Increase in price:
= price of 5 stocks - Price of preferred stock
= $100 - $75
= $25
% increase = (Increase in price ÷ Price of preferred stock) × 100
= (25 ÷ 75) × 100
= 33.3%
Answer:
Explanation:
Based on the scenario being described within the question it can be said that the best recommendation would be to invest $10,000 per year for the next 5 years in Treasury Bonds. Then in about 6-10 years when there are no more recurring mortgage payments to be made, follow that up by increasing the annual investment by another $10,800 per year.
