Answer:
Correct Answer:
c. joint tenancy with rights of survivorship
Explanation:
The property Jay owes on Gatsby Island belongs to him but he wishes to share th ownership with his 2 good friends. His conveyance of the message to both which reads <em><u>"tenants by the entirety"</u></em> <em>shows that he and his friends has equal ownership and rights to the Gatsby Island property.</em>
<em>In the event that either him or one of the friends dies, the full title of the property automatically passes to the surviving person.</em>
Answer:
Dr Interest expense -$21,720
Cr interest Payable - $21,720
Explanation:
Interest
Since it is a short-time loan (3-month), the interest rate will be prorated to 3-month.
Interest expense = $362,000 × .06 × 3/12 = $21,720
Hence, following entries will be recorded :
Dr Interest expense -$21,720
Cr interest Payable - $21,720
For Principal amount Borrowed:
Cr Loan payable $362000
Dr. Bank Account $362000
Upon Settlement :
Dr. Interest Payable $21,720 and Cr Bank Account $21,720
Dr. Loan payable $362000 and Cr Bank Account $362000
Answer:
Value of Stock is $6.68
Explanation:
We need to calculate the present value of each dividend payment to arrive at the value of stock.
Number Dividend PV factor PV of Dividend
First $0.47 (1+14%)^-1 = 0.8772 $0.41
Second $0.52 (1+14%)^-2 = 0.7695 $0.40
Third $0.67 (1+14%)^-3 = 0.6750 $0.45
Forth $0.97 (1+14%)^-4 = 0.5921 $0.57
*Perpetuity$9.35 (1+14%)^-5 = 0.5194 $<u>4.85</u>
Total <u>$6.68</u>
* Perpetuity
After 4 year the dividend will be grow at a constant rate. So, it will be considered as the perpetuity and it value at year 5 will be calculated as follow
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
As per given data
Dividend = $0.97 x 1.033 = $1
Growth rate = 3.3%
Discount rate = 14%
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
Price = $1 / ( 14% - 3.3% )
Price = $9.35
Answer:
Option (D) is correct.
Explanation:
Given that,
Sales revenue = $32,0000
Accounts receivable = 50,000
Ending inventory = 100,000
Cost of goods sold = 250,000
Sales Returns = 20,000
Gross profit:
= Net sales revenue - Cost of goods sold
= (Sales revenue - Sales return) - Cost of goods sold
= ($320,000 - $20,000) - $250,000
= $300,000 - $250,000
= $50,000
Answer:
c. money supply to rise. To reduce the impact of this the Fed could sell Treasury bonds.
Explanation:
Since in the question it is given that the bank has decided to hold fewer reserves that contain excess reserves as compared to deposits so for this they have to borrowed the amount or the saving amount should be invested
This results in declining in interest rate which causes the money supply risen also the demand and the investment for the nation has risen that develop the inflation but for declining the inflation the FED has to sell the bonds so that it comes at equilibrium point again
