A "market economy is based on personal choice.
Answer:
Debit Unrealized Holding Gain or Loss$200,000
Crediit Estimated liability on Purchase Commitments $200,000
Explanation:
Preparation of the journal entry at the end of the current fiscal year
Based on the information given the journal entry at the end of the current fiscal year will be :
Debit Unrealized Holding Gain or Loss $200,000
Crediit Estimated liability on Purchase Commitments $200,000
($2.5 million-$2.3 million)
Answer:
The coinage metals comprise, at a minimum, those metallic chemical elements which have historically been used as components in alloys used to mint coins. The term is not perfectly defined, however, since a number of metals have been used to make "demonstration coins" which have never been used to make monetized coins for any nation-state, but could be. Some of these elements would make excellent coins in theory (for example, zirconium), but their status as coin metals is not clear. In general, because of problems caused when coin metals are intrinsically valuable as commodities, there has been a trend in the 21st century toward use of coinage metals of only the least exotic and expensive types.
Explanation:
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Answer:
$8,721.5
Explanation:
As per the question details provided, we are required to calculate the value of levered firm. Difference between the levered and unlevered firm is that the levered firm compromises of both the equity and debt in its valuation while the unlevered firm only has equity and no debt.
Therefore, the value of levered firm is the sum of the value of unlevered firm and the tax shield available to firm as interest expense on the debt which is tax deductible. The calculation is as follows:
Value of Unlevered Firm (VU) = {Expected Earnings x (1 - Tax Rate)} / Cost of capital
VU = [$1,900 x (1 - .34)]/.16 = $7,837.5
Value of Levered Firm (VL) = VU + Tax Rate (Debt Value)
VL = $7,837.5 + .34 ($2,600) = $8,721.5
Hence, value of the firm is $8,721.5
Answer:
B. n/a (200) 200 200 n/a 200 n/a
Explanation:
A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.
E.g. you paid $100 within the discount period (2% discount)
Dr Accounts payable 100
Cr Cash 98
Cr Purchase discounts 2
This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.