Answer:
$740,200
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
Depreciation = (900,000 - 101,000)/5
= $159,800
Book value is the cost net accumulated depreciation
= $900,000 - $159,800
= $740,200
Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer:
C.principal-agent problems.
Explanation:
The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.
Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.
Answer:
The correct answer is letter "B": attention.
Explanation:
Attention is the mental activity by which individuals focus their attention on a given subject they are dealing with. By doing this, people leave behind any other situation around to concentrate only on the task they are given. This scenario takes place in complicated exercises that push people's knowledge to the limit or when the exercise is of interest or important for the individual.
Answer:
A.
Explanation:
When the Fed wants to expand the money supply through open market operations, it purchases government securities from member banks. They do this in order to control the amount of money that travels through the countries banking system so they can move along with the monetary policies that they have in place.
