Answer:
$215,000
Explanation:
The calculation of the total amount of expenses related to Kailey, and to Denber's acquisition of Kailey, for 2014 is given below:
= (Annual amount of amortization related to this acquisition × number of months) ÷ (Total number of months) + (expenses incurred × number of months) ÷ (Total number of months)
= ($15,000 × 4 months ÷ 12 months) + ($630,000 × 4 months ÷ 12 months)
= $5,000 + $210,000
= $215,000
We assume the books are closed on December 31.
Answer:
$926,000
Explanation:
For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.
And, the lease cost is also not relevant as the lease period will be ended soon.
All other information which is given is not relevant. Hence, ignored it
Answer:
$66.67
Explanation:
Using dividend growth model
P0 =
Where P0 = Current market price of share
D1 = Dividend at year end
Ke = Expected return
g = growth percentage
Since D1 has been provided we will take D1 else formula is D0 + g for calculating D1
Putting the values as provided we have
P0 =
= = $66.67
Answer:
C) $10,000
Explanation:
The last interest payment was made on November 1, so by December 31, two months worth of interest is considered receivable.
Interest receivable = principal x interest rate x time periods = $500,000 x 12% x (2/12) = $10,000
By December 31, no principal payments had been done yet.