Answer:
$6,655
Explanation:
Variable cost per bag = $3.70
Total fixed cost = $10,000
Unit selling price before further processing = $9.05
No of bags = 10,000
Contribution per bag = 9.05-3.7 = $5.35
Total revenue = 9.05*10,000= $90,500
Net income =90500-(10,000+37000 )= 43500
Incremental cost =2100
Incremental revenue( 10,000*8.05) + (3100*6.05)
80500 + 18755 = $99255
Net income = 99255 - (2100+47000)= 50155
Financial advantage = 50155-43500=6655
Answer:
c. capitalized as part of the cost of the land.
Explanation:
These are the options for the question
a. depreciated over the period from acquisition to the date the hotel is scheduled to be torn down.
b. written off as an extraordinary loss in the year the hotel is torn down.
c. capitalized as part of the cost of the land.
d. capitalized as part of the cost of the new hotel.
From the question, we are informed about Cotton Hotel Corporation
which recentlyy purchased Emporia Hotel and the land on which it is located with the plan to tear down the Emporia Hotel and build a new luxury hotel on the site. The cost of the Emporia Hotel should be capitalized as part of the cost of the land. In financial accounting, cost of land can be regarded as asset valuation method which can be used to land that shows on the balance sheet of a company. This cost would encompass all amount spent when acquiring the property and other expenses.
,
Answer:
no no don't touch me there, no no that's my no no square. Me singing this but they declared it dead.
Explanation:
Since it is given that
Acquiring value of an vacant lot = $115,000
Sale value of the vacant lot in cash = $298,000
Since the sale value is more than the acquiring value which reflects the increment in the asset for $183,000 due to which the profit is also increased for $183,000 i.e retained earnings
Now the effect is shown below:
1. Assets = Increase = $183,000
2. Liabilities = No change = $0
3. Stockholder equity = Increased = $183,000
Answer:
A.P(0)=$48.89
B.P(1)=$51.56
C.P(0)=$49.35
Explanation:
A. Calculation for what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two year
Using this formula
P(0)=Dividend per share/Percentage of Equity cost of capital +(Dividend next year+Stock price)/Percentage of Equity cost of capital
Let plug in the formula
P(0) = 2.88/ 1.103 + (3.01+ 53.87) / 1.103^2=
P(0)=2.611+56.88/1.216609
P(0)=59.491/1.216609
P(0)=$48.89
b. Calculation for what price would you expect to be able to sell a share of Acap stock in one year
Using this formula
P(1)=(Dividend next year + Stock price)/Percentage of Equity cost of capital
Let plug in the formula
P(1) = (3.01 + 53.87) / 1.103 = $50.00
P(1)=56.88/1.103
P(1)=$51.56
c.Calculation for what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year
Using this formula
P(0)=(Dividend per share + P(1)/Percentage of Equity cost of capital
Let plug in the formula
P(0) = (2.88 + 51.56) / 1.103
P(0)=54.44/1.103
P(0)=$49.35
Therefore compare to the answer in (a)
if you planned to hold the stock for two year you will have $48.89 and if you planned to hold the stock for one year you will have $49.35.
