Answer: c. Leveraged Buyout
Explanation:
A Leveraged buyout as the term suggests, is when a buyout is sponsored mainly by the use of debt. In Business Leveraged Buyouts usually occur when either the management, employees or private investors buys out or attempts to buy out the Shareholders of a company by using debt funding so that they can then own the company. The debt is acquired by using both assets of the company being bought and that of the company buying (unless they do not have any) as collateral.
When Blackstone investment company borrowed funds to buy out the stockholders of Busch Entertainment, it was participating in a Leveraged Buyout.
Answer:
Depreciation for 2017
Account - Dr - Cr
Depreciation expense $4900
Accumulated Depreciation $4900
Depreciation for 2018
Account - Dr - Cr
Depreciation expense $4900
Accumulated Depreciation $4900
Sale of Truck:
Account - Dr - Cr
Cash $5300
Equipment $22,000
Accumulated Depreciation $9800
(4900*2)
Loss on Sale $6,900
Explanation:
- Depreciation = (Cost + Sales tax - Salvage value) / useful life
=(20515+1485-2400)/4
=$4900
- Book value = Cost + Sales tax - Annual depreciation computed in (a) * 2 years
=20,515+1,485-4900*2
=$12,200
Gain (loss) = Proceeds - Book value
=5,300 -12,200
=$6,900
Answer:
COGS= $250,000
Explanation:
Giving the following information:
Beginning Finished Goods Inventory $72,000
Ending Finished Goods Inventory $68,000
Cost of Goods Manufactured for the period $246,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 72,000 + 246,000 - 68,000
COGS= $250,000
