Answer:
33.8%
Explanation:
Purchase price of the bond will be computed using the formula below.
where A = annual coupon = 10% * 1000 = 100
r = yield to maturity = 0.1384
n = time to maturity = 20 years
F = face value = $1,000
p = price of the bond.
Therefore, if Janet sold the bond a year later for $994.79,
the profit on sale = 
= 33.8% profit (rate of return).
Answer:
The cost of ending inventory = $193,200.
Explanation:
First in First out (FIFO) inventory system refers to the system where the materials are issued when they have purchased in an orderly manner. See image below to get your answer with illustration.
Answer:
$0
Explanation:
The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity
So overall there is no net effect
hence, the amount should be $0
Answer:
Increasing current profits when doing so lowers the value of the firm's equity.
Explanation:
Agency problem is the likelihood that managers may place personal goals ahead of corporate goals. A characteristic feature of corporate enterprises is the separation between ownership and management. Thus, with the objective of survival, management would aim at satisfying instead of maximizing shareholder´s wealth.
Three generic agency problems arise in business firms:
-The conflict between the firm´s owners and its hired managers.
-The conflict between controlling and minority shareholders.
-The conflict between shareholders and non shareholders constituencies.
Answer:
Explanation:
A)
Future taxable 2019 2020 2021 total
And (deductible) amount
Extra depreciation 400000 400000 400000 1200000
Litigation (890000) (890000)
B)
Journal Debit Credit
Income tax expense
[840000 + (480000-356000)] 208000
Deferred tax assets(890000×40%) 356000
Deferred tax liability(1200000×40%) 480000
Income tax payable(210000×40%) 84000
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