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pav-90 [236]
3 years ago
7

On December 31, 2018, Perry Corporation leased equipment to Admiral Company for a five-year period.

Business
1 answer:
Delvig [45]3 years ago
8 0

Answer:

Perry's earnings will be increased by $21,000 due to this lease.

Explanation:

Increase in earning is the difference of price of the lease and the cost incurred for the lease of asset.

Fair value$155,000

Cost = $134,000

Profit on sale = $155,000 - $134,000

Profit on sale = $21,000

As equipment was leased on December 31 So, no interest is earned in year 2018. $21,000 will be added to the earnings of Perry in 2018 due to this lease.

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The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang
WINSTONCH [101]

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = \frac{Market\ Price}{EPS}

                                                   =  \frac{15}{5}

                                                   = 3

Price-earning ratio at New price = \frac{Market\ Price}{EPS}

                                                   =  \frac{18}{5}

                                                   = 3.6

Hence, price-earnings ratio increases.

7 0
3 years ago
Help me pleaseee!!!!
Allisa [31]
A, type of economy ($)
8 0
3 years ago
A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact
mariarad [96]

Answer: Company should not expand to either.

Explanation:

Find the expected values of expanding to either country and pick the country with the highest expected value:

China:

= ∑(Probability of outcome * Outcome)

= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)

= -$300,000

Vietnam:

= (70% * 1,000,000) + (30% * -2,500,000)

= -$50,000

<em>Both countries result in an expected loss so company should not expand to either of them. </em>

3 0
3 years ago
Calculate revenue. Revenue is the quantity sold times the price for the product. The quantity sold will be the smaller of the qu
ira [324]

Answer:

Revenue for Smart Suiting is $521,306.

Explanation:

Revenue is the business operational source of finance. IFRS has made standards for revenue recognition which need to be followed by all organizations. The revenue should be calculated after deducting trade and cash discounts. If there is any sales return it should be deducted from the gross revenue figure. Net revenue should be reported in the Income Statement.

3 0
3 years ago
Eddie sells furniture and earns 12% commission. This week he sold a couch for $1234, a bedroom suite for $1789, and a chair for
Alborosie

Complete question :

Eddie sells furniture and earns 12% commission. This week he sold a couch for $1234, a bedroom suite for $1789, and a chair for $563. Calculate Eddie's commission.

Answer:

$717.20

Explanation:

Given that :

Percentage commission earned on sale = 12%

Cost of items sold this week:

Couch = $1234

Bedroom suite = $1789

Chair = $563

Total cost of items :

($1234 + $1789 + $563) = $3586

Commission of 20% on sales :

20% of $3586

0.2 * $3586

= $717.20

3 0
2 years ago
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