How much taxes they take off
Answer:
Po = <u>D1</u> + <u>D2</u> + <u> D3</u>
(1 + Ke) (1 + Ke)2 (1 + Ke)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28
</u>
(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>
1.1 (1.1)2 (1.1)3
Po = $10.91 + $10.33 + $21.04
Po = $42.28
Explanation:
The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.
Answer and Explanation:
The internal and the external users or parties of accounting information are as follows
Internal users: These are the users who are belonged from the company i.e. shown below:
1. Owners
2. Managers
3.Employyes
External users: These are the persons who are outsiders such as
1. Suppliers
2. Customers
3. Tax authorities etc
Explanation:
The journal entries are shown below:
1. Building A/c Dr $176
Equipment A/c Dr $270
To Cash A/c $408
To Note payable A/c $38
(Being the building and the equipment is purchased for cash and note payable)
2. Cash A/c Dr $345
To Common stock $240 (120 shares × $2)
To Additional paid in capital A/c - Common stock A/c $105
(Being the common stock is issued for cash)
3. Retained earnings A/c Dr $145
To Dividend payable A/c $145
(Being the dividend is declared)
4. Short - term investment A/c Dr $7,616
To Cash A/c $7,616
(Being the short term investment is purchased for cash)
5. No journal entry is required
6. Cash A/c Dr $4,413
To Short - term investment A/c $4,413
(Being the short-term investment is purchased)
Answer:
a. under applied.
Explanation:
For computing, whether it is under applied or over applied first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
Now we have to find the applied overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
So, the ending overhead equals to
= Actual manufacturing overhead - applied overhead
= under-applied
If actual overhead is more than the applied overhead
