Answer:
c. $363 million
Explanation:
We can compute this easily by making a retained earning extract from the balance sheet at the closing date,
Opening Retained earnings $12,329
Add retained earnings for the year $556
Less: Dividends paid $363
Closing Retained earnings $12,522
Reverse calculating the information gives us c. $363 million
Hope that helps.
Answer:
c) $110,000
Explanation:
The computation of the borrowing amount is shown below:
= Value of home × given percentage - current mortgage amount
= $200,000 × 80% - $50,000
= $160,000 - $50,000
= $110,000
For computing the accurate value, we have to deduct the current mortgage amount from the net value of home.
Since only 80% is related to the home value so we take only 80% and rest 20% would be ignored.
Answer:
$1,510
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
The business had a total of 40 inventories.
The inventories sold = 40 - 20 = 20
The cost of the goods sold would first be alloted to the 3rd purchased inventory = 10 x $77 = $770
The remaining cost of goods sold would be allocated to the 2nd purchase of inventory = 10 x $74 = $740
Total = $740 + $770 = $1,510
I hope my answer helps you
Answer:
Frost (Lessee) and Ananz (Lessor)
The circumstance that would require Frost to classify and account for the arrangement as a finance lease is:
c. The economic life of the computers is three years.
Explanation:
a) Data:
Annual lease payments = $8,000
Present value of the minimum lease payments = $13,000
Fair value of the computer = $14,000
The economic life of the computers = 3 years
The lease period = 2 years
b) One of the conditions for classifying the lease arrangement as a finance lease is that the lease term of 2 years forms a significant part of the asset's useful life of 3 years. Other conditions include:
Firstly, ownership of the asset is transferred to the lessee at the end of the lease term. The second condition is that the lessee can purchase the asset below its fair value.
Answer:
Option A is the cheapest.
Explanation:
Giving the following information:
The engineering department estimates costs of $450,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $43,000 each year. As an alternative, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 15 years for $225,000 per year.
We need to use the following formula and chose the smallest net present value:
NPV= Io +∑ [Cf/(1+i)^n]
Option A:
Io= 407,000
Year cost= 43,000
NPV= 734,061
Option B:
Yearly cost= 225,000
NPV= 1,936,368
