Answer:
recognized on March 31 after the delivery of the equipment
Explanation:
Revenue is recognized once the recognition criteria is met. These criteria includes;
- the cost of the item sold can be measured reliably
- the items has been delivered or the service has been rendered
Given that the contract specified a delivery date of March 1.
The equipment was not delivered until March 31 and as such, the revenue for the contract should be recognized on March 31 after the delivery of the equipment.
Answer:
1) d. $175,000
2) b. $156,250
Explanation:
1. The computation of net income for 20X9 under the treasury stock method is shown below:-
Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income
= $100,000 + $75,000
= $175,000
2. The computation of income assigned to the controlling interest for 20X9 is shown below:-
income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)
= $100,000 + ($75,000 × 75%)
= $100,000 + $56,250
= $156,250
Therefore we have applied the above formulas.
They do it by calculating the interest payments I believe. Hope this helped.
Answer:
WACC = 10.35%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion that each source of finance bears to the total capital in the pool..
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.23)× 7.5% = 5.8%
Type Cost (%) Weight cost × weight
Equity 12.8 65% 8.32
Debt 5.8 35% <u> 2.03 </u>
Total 10.3
WACC = 10.35%
