Answer:
Net income = $76,000
Earning per share (EPS):
Income from continuing operations per share = $4.40 per share
Loss from discontinued operations per share = -$3.64 per share
Net Income per share = $0.76 per share
Explanation:
Note: See the attached excel file for the income statement.
Also Note: Two years (2016 and 2018) were mistakenly mentioned in the question instead of just one of them. I therefore picked 2016 to prepare the income statement.
In the attached excel file, the earning per share (EPS) is calculated as follows:
Number of shares outstanding = 100,000 shares
Income from continuing operations per share = Income from continuing operations / Number of shares outstanding = $440,000 / 100,000 = $4.40 per share
Loss from discontinued operations per share = Loss from discontinued operations / Number of shares outstanding = -$364,000 / 100,000 = -$3.64 per share
Net Income per share = Net Income / Number of shares outstanding = $76,000 / 100,000 = $0.76 per share
Answer:
B) It is reported on the income statement when it pertains to short term investments
Explanation:
Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.
Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.
Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.
When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income
Answer:
Journalize the transactions of May 27, August 3, and November 14.
Explanation:
deb cre
may-27 Treasury Stock 600000
(75000*8)
Cash 600000
ago-03 Cash 594000
(54000*11)
Treasury Stock 432000
(54000*8)
Paid in capital for treasury stock 162000
nov-14 Cash 147000
(21000*7)
Treasury stock 168000
(21000*7)
Paid in capital for treasury stock 21000
Answer:
<h2>The answer would be option be option B. or An increase in hotel taxes at popular resorts.</h2>
Explanation:
- If everything else remains constant,a fall or decrease in oil prices will be a good news for most of the households and they will set out for vacation travel.
- Now,if suddenly the tax rates charged by popular hotels or resorts increase simultaneously or following the decrease in oil prices,it will increase the aggregate hotel or resort charges for the families and households or even for any individual traveler.
- Hence,an increase in hotel or resort taxes would discourage the individuals and households to undertake any current or future travel plans and therefore,offset the initial vacation plans that primarily resulted from cheaper gasoline or oil prices.
Answer:
The multiple choices are:
a. 7.72%
b. 5.40%
c. 5.22%
d. 7.46%
e. 4.90%
Option B is the correct answer,5.40%
Explanation:
In order to determine the after tax cost of Baxter's debt,we need to first of all calculate the pretax cost of debt which is by applying the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the number of coupon payments the bond would make which is 30
pmt is the annual coupon interest on the bond=7%*$1000=$70
pv is the current price of the bond minus the flotation cost=$945*(1-3%)=$916.65
The fv is the face value of $1000 per bond
=rate(30,70,-916.65,1000)
pretax cost of debt=rate=7.72%
After tax cost of debt=pretax cost of debt*(1-t)
t is th tax rate of 30% 0or 0.30
after tax cost of debt=7.72%*(1-.3)=5.40%
