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Ksju [112]
2 years ago
7

Asset retirement obligations:

Business
1 answer:
koban [17]2 years ago
5 0

Answer:

The correct answer is D

Explanation:

ARO stands for Asset retirement obligations, it is a legal obligation which is linked or associated with the retirement of the tangible as well as long lived asset in which the method of the settlement could be conditional on the future event.

So, these are the liabilities linked with the long term asset restoration, evaluated at the fair value in the balance sheet and also increase the balance in the related account of asset.

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Which of the following is not a typical strategic objective or benefit that drives mergers and acquisitions?a. to facilitate a c
ValentinkaMS [17]

Answer:

<h2>The correct answer in this case is option a. or to facilitate a company's shift from a broad differentiation strategy to a focused differentiation strategy. </h2>

Explanation:

Some of the major attributes or objectives behind commercial mergers and acquisitions commonly include expansion of market share or customer base through tapping into new markets(both geographically and new product based) and adopting product or service differentiation by combining business operations,invent more cost effective production processes or methods and gain access to new and improved technological resources and inputs.Hence,one of the important objectives of any commercial merger or acquisition is actually to enhance market share of the company or business organisation through diversified product differentiation and not on any focused differentiation strategy which can potentially cover a relatively wider consumer base.

4 0
2 years ago
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The
krek1111 [17]

Answer:

The loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

Explanation:

By using the given information which is mentioned in the question, first we have to calculate the book value of equipment.

So, the book value of the equipment is equals to

= Cost price - accumulated depreciation

= $120,000 - $66,000

= $54,000

Now we can calculate the loss or gain on sale of equipment which is equals to

= Sale price - book value

= $45,000 - $54,000

= - $9,000

Since, the amount shows negative which means the company has suffered a loss of $9,000 on equipment

The other things like net income of 2017 and 2018 is irrelevant because it tells the net income of overall company not for equipment. So, it is not being considered while computation

Hence,  the loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

7 0
3 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
sertanlavr [38]

Answer:

$9.687

Explanation:

Given:

Year 3 dividend = $1.00

Year4&5 growth rate = 17%

Constant rate = 7%

Required return rate = 16%

Year 4 dividend wil be:

D4 = 1.00 * 1+growth rate

= 1.00 * (1+0.17)

= $1.17

Year 5 dividend=

D5 = $1.17 * (1+0.17)

= $1.3689

Value of stock after year 5 will be given as:

\frac{D5 * (1+growth rate)}{required return - growth rate}

= \frac{1.3689*(1+0.07)}{0.16-0.07}

= $16.2747

For the current value of stock, we have:

Cv= Fd* Pv of discounting factor

Where Cv = current value of stock

Fd = future dividend

Pv = Present value of discounting factor

Therefore,

C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}

=$9.6871382455

≈ $9.687

The value of stock today =

$9.687

8 0
3 years ago
Which of the following subjects should you study if you are seeking a career in agriculture or natural resources? Select all tha
hjlf
I think it’s a and b
7 0
2 years ago
Read 2 more answers
During a recession, a number of workers have their hours reduced by their employers. All else the same, the unemployment rate wi
devlian [24]

Incomplete question. I answered from a general economic standpoint.

Answer:

<u>stay the same; decrease</u>

Explanation:

<em>Remember</em>, in this scenario, it wasn't as though the mentioned workers lost their jobs, they only had their hours reduced by their employers; so they are not <u>unemployed</u>. This, therefore, implies that the unemployment rate will stay the same.

The labor force participation rate in simple words refers to the percentage of those who are currently employed or looking for a job within an economy. If the working hours are reduced, it may diminish the zeal among the workforce of an economy to work or find work because <u>they may perceive they''ll earn less.</u>

6 0
2 years ago
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