Answer:
$175,000
Explanation:
Calculation to determine West should report on its income statement for the year ended December 31, 20X5, a gain on condemnation of property of
Using this formula
Gain on condemnation=Compensation for the forced sale-Book value
Let plug in the formula
Gain on condemnation=$450,000-$275,000
Gain on condemnation=$175,000
Therefore what should report on its income statement for the year ended December 31, 20X5, a gain on condemnation of property of $175,000
Answer: B. Currency Boards
Explanation: Capital control is a process through which Organisations put in place different actions and programs to regulate the capital used in the business. This can be in the form of prohibitions(a capital control by preventing certain spending)
Taxes are also means of controlling capital by Organisations.
Quotas are also used to control capital by assigning certain level of spending or investment.
You would have to either make them pay another installment.
Answer: 16.3%
Explanation:
Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.
Cost of preferred stock using the Capital Asset Pricing Model is:
= Risk free rate + Beta * ( Market return - Risk free rate)
= 4% + 1.23 * (14% - 4%)
= 16.3%
Solution :
Expected sales = current sales x (1 + projected sale next year increase)
= 5,700 x (1 + 15%)
= $ 6555
Expected cost = current cost x (1 + projected sale next year increase)
= 4200 x (1 + 15%)
= $ 4830
Taxable income = 1500 x ( 1 + 15%)
= $ 1725
Taxes (34%) = 510 x (1+15%)
= $ 586.5
Net income = sales - cost - taxes
= 6555 - 4830 - 586.5
= $ 1138.5
Calculation of total asset :
Current asset = 3,900 x 1.15
= $ 4485
Fixed asset = 8100 x 1.15
= $ 9315
Total asset = 4485 + 9315
= $ 13800
Calculation of total liabilities
Current liabilities = 2200 x 1.15
= $ 2530
Long term debt = $ 3,750
Equity = $ 6050 + (1138.5 x 0.50 )
= $ 7189
Total liabilities = $ 2530 + $ 3,750 + $ 7189
= $ 13, 469
Therefore the external financial needed is = $ 13800 - $ 13, 469
= $ 331
