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butalik [34]
3 years ago
14

On December 2, Year 1, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell

the division's assets on the open market as soon as possible. This decision represents a major strategic shift for Flint and will have a significant effect on operations and financial results. The division reported net operating losses of $20,000 in December and $30,000 in January. On February 26, Year 2, sale of the division's assets resulted in a gain of $90,000. Assuming that the frozen food division qualifies as a component of the business and ignoring income taxes, what amount of gain/loss from discontinued operations should Flint recognize in its income statement for Year 2?
A. 60,000
B. 90,000
C. 0
D. 40,000
Business
1 answer:
WITCHER [35]3 years ago
7 0

Answer:

The amount of gain that Flint should recognize in its income statement for year 2 is $60,000,option A.

Explanation:

The losses recorded in January is offset against the disposal proceeds of the asset,thereby leaving a gain of $60000($90000-$30000)

The losses recorded in December of year 1 is not relevant in computing gain or loss for year 2 as the losses would have been recorded since gains and losses from discontinued operations are expected to be reported same year.

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Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $3 per share. I
Vera_Pavlovna [14]

Answer:

Correct option is B.

<u> The weight of debt for WACC purposes is 23.08%</u>

Explanation:

Amount of debt = 2 million x 0.90

 = 1.80 million

Amount of equity = 2 million x 3

= 6 million

Weight of debt = amount of debt/ (amount of debt + amount of equity)

  = 1.80 million / ( 6 million + 1.80 million)

  =23.08%

8 0
3 years ago
Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with
erica [24]

Answer:

C. $1,370,000

Explanation:

Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity

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Direct labor $610,000

Allocated variable overhead $420,000

Minimum bid price $1,370,000

($340,000+$610,000+$420,000)

Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000

4 0
2 years ago
When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is _________, so
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When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.

If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.

As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.

Learn more about interest rates here: brainly.com/question/1115815

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7 0
1 year ago
What does the Occupational Safety and Health Act enforce?
DiKsa [7]
The last one, Im pretty sure.
4 0
3 years ago
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Answer:

I would personally try to teach them myself since I have more experience and help them get better at their work environment.

Explanation:

8 0
3 years ago
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