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valkas [14]
3 years ago
10

On June 30, 20X5, Mill Corp. incurred a $100,000 net loss from disposal of a business segment. Also, on June 30, 20X5, Mill paid

$40,000 for property taxes assessed for the calendar year 20X5.
What amount of the foregoing items should be included in the determination of Mill's net income or loss for the six-month interim period ended June 30, 20X5?

a) $140,000
b) $120,000
c) $90,000
d) $70,000
Business
1 answer:
OleMash [197]3 years ago
3 0

Answer:

$120,000

Explanation:

Total amount for inclusion in determining Mill Corp's net income or loss is as follows.

  • Net loss from disposal of business segment = $100,000
  • Property tax for 6 months to June 30, 20x5= $40,000 * 0.5 = $20,000

Therefore, total amount for inclusion = $100,000 + $20,000 = $120,000.

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Explanation:

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For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: the market value of eq
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Answer:

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Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

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