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vredina [299]
3 years ago
11

Ichor Co. reported equipment with an original cost of $379,000 and $344,000 and accumulated depreciation of $153,000 and $128,00

0, respectively, in its comparative financial statements for the years ended December 31, 20X5 and 20X4. During 20X5, Ichor purchased equipment costing $50,000 and sold equipment with a carrying value of $9,000. What amount should Ichor report as depreciation expense for 20X5?A. $19,000
B. $25,000
C. $31,000
D. $34,000
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

C. $31,000

Explanation:

The computation of the depreciation expense is shown below:

Net balance of the equipment on the year 20X5

= Original cost - accumulated depreciation

= $379,000 - $153,000

= $226,000

Net balance of the equipment on the year 20X4

= Original cost - accumulated depreciation

= $344,000 - $128,000

= $216,000

So, the difference is $10,000

And, in 20X5, the loss on sale of equipment is

= $50,000 - $9,000

= $41,000

Now the depreciation expense is

= $41,000 - $10,000

= $31,000

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The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3
VLD [36.1K]

Answer:

a. ROE (r) = 13% = 0.13

EPS = $3.60

Expected dividend (D1) = 50% x $3.60 = $1.80

Plowback ratio (b) = 50% = 0.50

Cost of equity (ke) = 12% = 0.12

Growth rate = r x b

Growth rate = 0.13 x 0.50 = 0.065

Po= D1/Ke-g

Po = $1.80/0.12-0.065

Po = $1.80/0.055

Po = $32.73

P/E ratio = <u>Current market price per share</u>

                  Earnings per share

P/E ratio = <u>$32.73</u>

                 $3.60

P/E ratio = 9.09        

b.  ER(S) = Rf + β(Rm - Rf)

    ER(S) = 5 + 1.2(13 - 5)

    ER(S) = 5 + 9.6

    ER(S) = 14.6%

                                                                                                                                                                                                                                                                                                                                                                                     

Explanation:

In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.

In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.

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Which of the following is not an example of one of the four mail advantages of prices on a free market economy
Arte-miy333 [17]
The correct answer is

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For a sales​ promotion, the manufacturer places winning symbols under the caps of of all its soda bottles. If you buy a​ six-pac
Kaylis [27]

The probability that you win​ something will be 1.

What is an probability in statistics?

The probability serves as a gauge for how likely an event is to occur. It gauges how likely an event is. P(E) = Number of Favorable Outcomes/Number of Total Outcomes is the formula for probability.

Can the probability of an event be 1?

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Can a probability be negative?

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6 0
1 year ago
The economic interdependence among nations is often measured by their ___________.
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The economic interdependence among nations is often measured by their openness.

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Therefore,

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11 months ago
Opal Company manufactures a single product that it sells for $100 per unit and has a contribution margin ratio of 30%. The compa
yarga [219]

Answer:

$490,000.

Explanation:

To find out sales of Opal Company we will use below equation,

Sales = Variable cost + Fixed cost + Target profit

variable cost margin will be (1 - contribution margin)

= 0.7 (1 - 0.3)

we will consider sales as x,

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x = 0.90x + $49,000

x - 0.90x = $49,000

x = $49,000 / 0.10

x = $490,000.

Sales = $490,000.

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3 years ago
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