Pension expense of Harvey Hotels in its income statement for the year= <u>$9.7 million
</u>.
<u>Explanation</u>:
Service cost= $7.3 million
Interest cost= $2.5 million
Amortization of prior service cost= $2.2 million
Expected return on plan assets= $2.3 million
Pension expense=?
Pension expense is decreased by amortization of net gain.
Pension expense= (Service cost+ Interest cost- Expected return on plan assets+ Amortization of prior service cost
= (7.3+2.5+2.2)-2.3
= 9.7 million
Pension expense of Harvey Hotels in its income statement for the year= $9.7 million
Answer:
Cost of Goods Sold= $739,000
Explanation:
The Costs of Goods Sold (COGS) is a derived figure when preparing an Income Statement. It is more comprehensive than the other figures because it is arrived at as follows:
Cost of Goods Sold = Opening Inventory + Purchase of inventory (if any)+ goods manufactured (if any)- closing inventory.
Costs of finished goods manufactured represents a part of COGS
Invoices for product costs during the month is usually a part of the purchase of inventory or purchase of raw material for finished goods manufactured
Product Costs charged to Work In Progress is also a fraction of costs for the period.
Therefore, the most comprehensive product cost for August is the Cost of Goods Sold which aggregates other costs.
Answer:
Explanation:
The journal entry is shown below:
Retained earning A/c Dr $240,000
To Common Stock A/c $90,000
To Paid-in Capital in excess of Par-Common stock $150,000
(Being the dividend is recorded)
The computation is shown below
For common stock
= 300,000 shares × $3 × 10%
= $90,000
For retained earning
= 300,000 shares × $8 × 10%
= $240,000
And, the remaining balance is credited to the paid-in capital
Answer:
The answer is option C) Since Joaquin began to find ways to maximize his total compensation, which hinders CPA's performance, inside director-outside director problems is experienced.
Explanation:
A corporate entity like CPA Inc. sometimes appoint an outside director to create a stronger corporate identity. This is because it is believed that an outside directorate sees the bigger picture more clearly since they are looking from the outside in.
The outside directorate also help to check the excesses of the inside director.
The inside director is a member of the board employed to work as a manage staff.
Since Joaquin is named CEO in CPA Inc and given the authority to make decision by the stockholders of the company. He is the inside director.
His quest for more pay that is due him will definitely cause the outside directors to raise an eyebrow which will lead to inside director-outside director problems.
Answer:
$386.14
Explanation:
The computation of the price of the stock today is as follows;
But before that following calculations need to be done
Year 6 dividend = $20 × (1 + 1%)
= $20 × (1 + 0.01)
= 20.2
Now
Value at year 5 = Dividend at year 6 ÷ (required rate - growth rate
)
= $20.2 ÷ (0.06 - 0.01
)
= $20.2 ÷ 0.05
= 404
Now
Price of stock = Annuity × [1 - 1 ÷ (1 + r)^n] ÷ r + FV ÷ (1 + r)^n
= $20 × [1 - 1 ÷ (1 + 0.06)^5] ÷ 0.06 + 404 ÷ (1 + 0.06)^5
= $20 × [1 - 0.747258] ÷ 0.06 + 301.892302
= $20 × 4.212367 + 301.892302
= $386.14