Answer:
$99.3625
Explanation:
The computation of ex-dividend stock price is shown below:-
Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)
= $105.64 - $7.75 × (1 - 19%)
= $105.64 - $7.75 × 0.81
= $105.64 - 6.2775
= $99.3625
Therefore for computing the ex-dividend stock price we simply applied the above formula.
Sum of the year's digits is 5 + 4 + 3 + 2 +1 = 15 years.
Depreciation base: 32,000 - 2,000 = 30,000
The depreciation applied in any year is the depreciation base times (number of years remaining divided by 15). The first year has the highest depreciation, and the fifth year has the lowest.
Depreciation:
1st Year: Dep Base x 5/15
2nd Year: Dep Base x 4/15
3rd Year: Dep Base x 3/15
4th Year: Dep Base x 2/15 = 30,000 x 2/15 = 4,000
5th Year: Dep Base x 1/15
Answer is $4,000
Answer and Explanation:
a. The Journal entry is shown below:-
Lawsuit loss Dr, $900,000
To Lawsuit liability $900,000
(Being lawsuit loss is recorded)
Here we debited the lawsuit loss as it increased the losses and we credited the lawsuit liability as it also increased the liabilities because the losses contains normal debit balance and the liability contains normal credit balance
b. No Journal entry is required as The loss is not accrued as it is not expected that a liability has been spent at Dec 31, 2020
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
