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andrew11 [14]
2 years ago
10

Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang

e is a better estimate than any other amount. The loss accrual should be
A. The maximum of the range.
B. The mean of the range.
C. Zero.
D. The minimum of the range.
Business
1 answer:
anygoal [31]2 years ago
6 0

Answer:

D. The minimum of the range

Explanation:

First, it is essential to note the accrual of loss contingency is accruable only if the amount is estimable to a reasonable extent and the loss is also probable. Wyatt Co's loss is actually both probable and reasonably estimated so it meets the two criteria.

Furthermore, since it is reasonable within a rang of outcomes, Accounting Standards Codification Topic 450 (of the Financial Accounting Standard Board) dictates the amount to be accrued should be the better estimate of all amounts within the range.

The standard further states that in a situation where a better estimate can not be determined among the other amounts within the range then the amount accrued should be the one at the range's low end or the minimum amount of the range.

All these criteria shows that Wyatt CO's loss should accrue the minimum amount in the range

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Answer:

The answer is "Option c"

Explanation:

The Dividend payout ratio is 40% so that EPS* is the dividend payout ratio of the company:

= 6 \times 40 \% \\\\= \$ \ 2.40

Inventory market value:

= Dividend \times \frac{(1+g)}{(r-g)}

Where r = return rate is needed

g= growth = 5.25\% = \frac{5.25}{100} = 0.0525

\to 22.86 = \frac{(2.4 \times (1+g))}{ r-0.0525}\\\\\to 22.86 = \frac{(2.4 \times (1+0.0525))}{r-0.0525}\\\\\to (22.86 \times r)-(22.86 \times 0.0525)=2.526\\\\\to (22.86  \times r)-1.20015=2.526\\\\\to 22.86r=3.72615\\\\\to r=0.1630\\\\\to r=16.30 \%

6 0
3 years ago
If a country had a CPI of 91.0 last year and a CPI of 90.0 this year, then
Sergio039 [100]

Answer 1: The Correct answer is C) the average prices of goods and services decreased between last year and this year.

CPI stands for consumer Price Index. Also known as the 'basket' the index is developed by national governments to monitor the prices of basic goods and services used by the population.

This has to include basic items that the majority of population uses every day e.g. milk, chicken, electricity etc.

In this case, the CPI had decreased from 91.0 to 90.0 which means the prices fell.

Answer 2: The correct answer is A) 3.6%

The formula to calculate unemployment rate is:

No. of unemployed ÷ No. of Working People x 100

In this case, it was 9 million divided by 250 million x 100

3.6% unemployment rate is actually very less for an economy and is an indicator that the economy is doing well and creating enough jobs for most people. A high unemployment rate signals a worsening economy.

6 0
3 years ago
You pay $5,500 per year for insurance on your building. Fire damage caused $15,000 in repairs. The insurance company paid for th
ElenaW [278]

Based on the amount you pay now and the increase in insurance premiums, your annual insurance costs next year would be $6,325.

<h3>What is the next insurance cost next year?</h3>

The annual cost of insurance refers to the amount that is paid in premiums in a year.

That cost is currently $5,500 but will increase by 15%.

= Current insurance cost x ( 1 + rate of increase)

Solving gives:

= 5,500 x ( 1 + 15%)

= $6,325

Find out more on insurance cost at brainly.com/question/4953989.

6 0
1 year ago
Stemway Company requires a new manufacturing facility. It found three locations; all of which would provide the needed capacity,
PolarNik [594]

Answer:

Location C costs least to the company as it only costs $461,160

Explanation:

We will evaluate all the three proposals

Location A Cost = $500,000

Location B

Down payment = $100,000

Annual year end payment = $50,000 for upcoming 20 years

Present value @ 8% = ({\sum \frac{1}{(1+0.08){^1}}+ \frac{1}{(1+0.08){^2}}+ ........ \frac{1}{(1+0.08){^2^0}}}) \times $50,000 = 9.818 X $50,000 = $490,900

Net Present Value = $100,000 + $490,900 = $590,900

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Payment of $40,000 at the beginning of each year, which means first payment will not be discounted and remaining 24 payments will be discounted.

Thus Present Value = $40,000 +( {\sum \frac{1}{(1+0.08){^1}}+ \frac{1}{(1+0.08){^2}}+ ........ \frac{1}{(1+0.08){^2^4}}}) \times $40,000 = $40,000 + 10.529 X $40,000 = $40,000 + $421,160 = $461,160

Thus Location C costs least to the company as it only costs $461,160

7 0
3 years ago
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Anni [7]

Answer:

The answer is: $367,000

Explanation:

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return on plan assets = ($2,035,000 - $1,770,000) - ($116,000 - $218,000)

return on plan assets = $265,000 - (-$102,000) = $265,000 + $102,000

return on plan assets = $367,000

6 0
3 years ago
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