Answer:
$35,000
Explanation:
Under IAS 36, an asset is said to be impaired where the carrying amount is more than the recoverable amount.
The recoverable amount is the higher of the fair value less cost to sell or the value in use which is the present value of the expected future cashflow.
Given that;
Carrying Amount = $120,000
Selling Price = $80,000
Costs of Disposal = $5,000
Hence fair value less cost to sell = $80,000 - $5,000 = $75,000
Expected Future Cash Flows = $90,000
Present Value of expected future cash flows = $85,000 ( this is the value in use)
Recoverable amount = $85,000 (since the value in use is higher that the fair value less cost to sell)
This is lower than the carrying amount hence the asset is impaired.
Impairment = $120,000 - $85,000
= $35,000
Answer:
False
Explanation:
According to Pamela Webbers research in the U. S
40% of men started their first entrepreneurial venture before the end of their 35th year, while only 33% of women fell into this category.
Answer:
The price of the stock today is $24
Explanation:
The price of the stock can be calculated using the dividend discount model. The price of the stock will include discounting back future dividends.
P0 = D0*(1+g) / 1+r + [D*(1+g) / r-g] / 1+r
P0 = 1.2*(1+0) / 1+0.09 + [1.2(1+0.04) / 0.09-0.04] / 1+0.09
P0 = $24
Answer:
a concept that explains how a customer’s choices affect which products a business should continue to supply in the market
Explanation:
In simple words, Dollar voting relates to the example used only to relate to the effect of consumer demand on the behavior of suppliers via the stream of consumer purchases for their commodities to the suppliers.
In the potential, goods which people purchase will continue to be made. Throughout the future, product lines which are not selling as well as anticipated will probably have fewer productive assets. Efficiently, customers vote for "finalists" as well as "whiners" with their transactions as per this metaphor.
Answer:
The three basic monetary policy tools used by the U.S are; The discount rate, open market operations and reserve requirement.
Explanation:
The discount rate – This is the rate charged by Reserve Banks when lending short term loans to Commercial Banks. If there is a wish to expand the economy, the discount rate is lowered. This, in a domino effect, causes other interest rates such as consumer lending by commercial banks to lower. This encourages lending and spending by consumers and businesses through an increase in the money supply. When there is a wish to implement a contractionary policy, the discount rate is lowered thus causing other lending and borrowing rates to increase. This discourages borrowing and lending, eventually reducing the money supply in the economy.
Open market operations – This policy is achieved through the buying and selling of U.S Government securities. To achieve expansionary effects on the economy, the Fed buys government securities from members of the public, increasing the economy’s money supply. If, on the other hand, contractionary effects are desired, the Fed sells government securities to members of the public, and thus reducing the money supply.
Reserve requirements – These are portions of deposits that banks must hold in cash, either with the Reserve Bank or in their vaults. When there is a desire to practice expansionary policies, the Reserve bank lowers the requirement level thus increasing the amount of money that is available for lending in the commercial banks. This increases the money supply. If the Fed wishes to contract the economy, then the reserve requirement level is decreased thus reducing the money available for lending and in a ripple effect, the general level of money supply reduces.
