Answer:
The correct answer is A) Asset and liability approach
Explanation:
Under current generally accepted accounting principles, which approach is used to determine income tax expense? Asset and liability approach
The asset and liability approach is used to clarify the amount of income tax expense after the number of deferred tax assets and liabilities have been determined.
The answer is department overhead rate method and cost activity
Answer:
Option B, Increase the unsystematic risk of the portfolio, is the right answer.
Explanation:
Option B is correct because unsystematic risk refers to the risk that can be reduced drastically by diversifying the investment or portfolio. A company can reduce such risk by investing in a large range of projects or in large companies. Therefore, if the diversification decreases, as we can see in the question that the stock portfolio decreased from 50 to 10 then the unsystematic risk will increase.
Answer:
$963300
Explanation:
Number of bonds = 500
Quote price of bond = 98.6
number of common stock shares = 12000
price of common stock share = $47
Number of preferred stock shares = 5000
price of preferred stock shares = $70
Calculate the weight of Equity
market value of bonds = 500 * 98.6 = $49300
market value of common stock = 12000 * 47 = $564000
market value of preferred stock = 5000 * 70 = $350000
therefore the weight of equity of Lew's
= value of bonds + value of common stock + value of preferred stock
= 49300 + 564000 + 350000 = $963300