Answer:
a. Daniel must recognize $300 interest income for 2017 and a $200 gain on the sale of the bond in 2018
Explanation:
Since the interest was collected of $600 and the accrued interest is $300, so the remaining amount $300 reflect the interest income
And, the sale value of the bond is $10,200 without considering the interest collection and its purchase price without considering the accrued interest is $10,000. So, after comparing the purchase price and the sale price the gain of $200 would be determined
$10,200 - $10,000 = $200
Share holder in stock market . investment money multi national company
It is that your pay stubs might b wrong
Answer:
Option C). This is a capital lease because it meets at least one of the four capital lease criteria.
Explanation:
In the following situations, the lease transactions are called Finance Lease.
i) The lessee will get the ownership of leased asset at the end of the lease term.
ii) The lessee has an option to buy the leased asset at the end of lease term at price, which is lower than its expected fair value at the date on which option will be excercised.
iii) The lease term covers the major part of the life of asset.
iv) At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset.
In the given question, Present value of minimum lease rental amounting to $ 78 million covers substantially 94 % portion of the initial fair value of leased asset. Accordingly, last condition / last situation mentioned above to treat lease as finance lease is satisfied in the given question. In other words, out of four capital lease criteria mentioned above, fourth criteria / fourth condition (At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset) is satisfied in this given question.
Present value of minimum lease rental as a percentage of initial fair value of leased asset :-
= (78 Million / 83 Million ) * 100
= 0.94 * 100
= 94 % (approx).
Lease in given question is capital lease because it meets at least one of the four capital lease criteria.
Answer:
c) - 8.4%
Explanation:
<em>The return on a stock is the sum of the capital gains(loss) plus the dividends earne</em>d.
<em>Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.</em>
<em>Total shareholders Return = </em>
<em>(Capital gain/ loss + dividend )/purchase price × 100</em>
So we can apply this to the formula:
<em>Dividend</em> = $0.5 × 2 = $1
<em>Capital loss</em> = $49.30 - 54.90
% return =( $1 + ($49.30 - 54.90))/54.90
=-8.4%
Total percentage return on this investment = -8.4%
