Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
Answer:
Strategic
Explanation:
If Ming is a manager for a large company and has the authority to determine whether or not the company should expand into new regions and/or expand the company's product line, Then the level of management that Ming represents is Strategic Management
Strategic management involves setting objectives, <u>analyzing the competitive environment</u>, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.
Business expansion decisions are taken by the highest level of management based on their analysis of the competitive environment
Answer:
c) greater; increases
Explanation:
Energy will cause atoms/molecules to gain kinetic energy. That energy is converted to motion as the entities absorb the heat and store it as kinetic energy. This causes the molecules to move more rapidly and results in a higher rate of collisions with neighboring atoms/molecules.
Answer:
The amount if non-controlling interest at the date of acquisition will be $10,500.
Explanation:
The non-controlling interest is an ownership interest in a company where shareholders hold less than 50% of outstanding shares. The amount of non-controlling interest for the company will be $10,500.
Book value of acquired company is $15,000.
Plant is overvalued by $25,000
License is undervalued by $30,000
Unreported identifiable intangible assets are $50,000
The non-controlling interest is 15% (100 - 85)
The amount of non-controlling interest will be $15,000 - $25,000 + $30,000 + $50,000 = $70,000
$70,000 * 15% = $10,500.
Answer:
(a) 1.275%
; 6.25%
; 5.425%
(b) 12.95%
Explanation:
Given that,
After tax Cost of debt = 8.5%
Cost of preferred stock = 12.50%
Cost of Equity = 15.50%
Weight of debt = 15%
Weight of preferred stock = 50%
Weight of equity = 35%
After tax Weighted debt cost = Weight of debt × After tax Cost of debt
= 0.15 × 8.50%
= 1.275%
Weighted preferred stock cost = Weight of preferred stock × Cost of preferred stock
= 0.50 × 12.50%
= 6.25%
Weighted common equity stock cost = Weight of equity × Cost of Equity
= 0.35 × 15.50%
= 5.425%
Weight average cost of the firm:
= After tax Weighted debt cost + Weighted preferred stock cost + Weighted common equity stock cost
= 1.275% + 6.25% + 5.425%
= 12.95%
Note: The values of Debt, preferred stock and common equity are rearranged.
