Answer:
B) NSB wins because the modification has to be in writing.
Explanation:
If the contract specifically states that any modifications or addendums must be done in writing and must be signed by the companies' presidents, then any verbal agreement that modifies the contract is not enforceable. So the original contract is still in place and since Mid-American didn't perform, NSB can sue them and will win.
Contracts this large must be done in writing and signed under UCC rules, regardless of any specific clause.
Answer:
$1,400,000 per year
Explanation:
DATA
Patent = 7 million with 5years useful life
Trademark = 5 million with an indefinite life
Goodwill = 9million
Amortization =?
Solution
Amortization of patent = Patent Value/ Useful life
Amortization of patent = $7,000,000/5
Amortization of patent = $1,400,000 per year
NOTE: Trademark and goodwill will not be amortized as they have an indefinite useful life. Both Intangible assets will be tested for impairment instead.
Answer: See explanation
Explanation:
Sales price = $77.50
Add: Dividend = $2.70
Less: Purchase price = $96
Dollar return = -$15.80
a. Compute the percentage total return.
= Dollar return / Purchase price
= -15.80 / 96
= -0.1646
= -16.46%
b. What was the dividend yield?
= Dividend / Purchase price
= 2.70 / 96
= 0.0281
= 2.81%
c. What was the capital gains yield?
= -16.46% - 2.81%
= -19.27%
Answer:
- $2,670.21
- $1,068.09
Explanation:
1. The payment is a fixed amount so is an annuity. Using the Future value of an annuity factor table, we can find the annuity factor for 18 years at 8%.
Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
100,000 = Payment * 37.4502
Payment = 100,000/37.4502
= $2,670.21
2. Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
140,000 = Payment * 37.4502
Payment = 140,000/37.4502
= $3,738.30
How much more would they pay = 3,738.30 - 2,670.21
= $1,068.09
Answer:
Since the account's balance is $0, Idler should not continue to use the equity method to report their investment in Cowl Corp. E.g. Idler has 50% of Cowl, but 50% of $0 is still $0. Only if Cowl continues to operate and starts making a profit, should Idler again start including that investment in their balance sheet using the equity method.
