Answer:
loss of $ 1,400,000.00
Explanation:
Amount of share : two million:
offer price per share: $55
selling price per share: $53.80
Loss per share: $1.20
Total loss= $1.2X2,000,000= ($2,400.000.00)
Earning from spread: 0.5x2,000,000.00 =$1,000.000.00
Net earning: (2,400,000.00)+$1,000,000.00=($ 1,400,000.00)
loss of $ 1,400,000.00
Can you dm me for the answer I’m not home rn I’m trying to help out a lot of people
Answer:
a. $295.81
Explanation:
Total market value = (310 * 10.2) + (260 * 20.4)
Total market value = 3,162 + 5,304
Total market value = 8466
Joint cost allocated to L on basis of value
= [ (310 * 10.2) / 8,466] * 792
= (3,162 / 8,466) * 792
= $295.81
I believe the correct answer is D. Don’t hate me if I’m wrong
Answer:
Explanation:
Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2
