Answer:
An example of an operational risk would be if a business were unable to meet
its sales orders because of the death of the company president
Explanation:
When death incur from the owner or incharge of such business it might affect the operations of such businesses but if all other factors has been put in place, it would enable the business to carry on even when the owner is dead.
Answer: $169470
Explanation: Firstly, we'll calculate the discount on bond which will be:
= Issue Price - Par Value
= $3,000,000 - $2,817,000
= $183,000
Then, the interest payable will be:
= Coupon Rate × Bond ParValue
= $3,000,000 × 8%
= $3,000,000 × 0.08
= $240,000
We will calculate the interest expense as:
= Issue Value × Market Rate
= $2,817,000 × 9%
= $253,530
Then, the amortized amount for Year 1 will be:
= Interest Expense - Interest Payable
= $253,530 - $240,000
= $13,530
Therefore, the unamoritzed amount of bond discount will be:
= $183,000 - $13,530
= $169,470
Answer:
It is an example of subsidiary companies, and occurs when a company is directly or indirectly controlled by another and for that control to exist, it is the property of more than 50% of the shares.
Explanation:
A company is considered the parent of another when it exercises financial, economic and administrative control directly or indirectly, through one or more subsidiaries of its own, or by companies that have a dependency link to the parent company or its subsidiaries, therefore, the subordinate is that company that lacks autonomy simply because it is dominated by a parent company.
Answer:
Option (b) $1.00
Explanation:
Data provided in the question:
Selling cost = $9/ unit
Number of units sold = 10,000
Accounting profit = $20,000
Variable costs = $6 per unit.
Now,
let x be the increase in variable cost
Account profit = Revenue - Variable cost
thus,
$20,000 = $9 × 10,000 - ($6 + x) × 10,000
or
$20,000 = ( $9 - $6 - x ) × 10,000
or
$2 = $3 - x
or
x = $1.00
hence,
Option (b) $1.00
Answer:
($97,400)
Explanation:
The computation of net operating income (loss) is shown below:-
East West
Sales $595,000 0
Less: Variable Cost $216,000 0
Less: Traceable Fixed Cost $156,000 0
Less: Allocated common
corporate cost $320,400
= $128,300 + $192,100 0
Net operating Income(loss) ($97,400) 0
As per the given question it is mentioned that company have net operating income from East division = $94,700
