It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling i
2 answers:
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The numerator of the return on common stockholders' equity is net income minus preferred dividends.
Option d
<u>Explanation:</u>
Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.
<em>Use of return on equity:</em>
- Isolates common equity returns
- Can be used to evaluate dividends
- Evaluates the use of capital by the management
It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.
That is,
Hence, net income minus preferred dividends is the right answer.
Answer:
amount that should be reported for patent amortization expense for 2018 will be $90000.27
Explanation:
given data
purchased patent = $405,000
useful life = 10 years
spent = $99,000
remaining useful life = 5 years
solution
first we get here amortization from September 1, 2016 - January 1, 2018 that is
September 1 - december 31 = = 0.333333
amortization = (1 + 0.333333) × (405000 ÷ 10)
amortization = $53998.65
and
now we get remaining value before defence
remaining value = $405,000 - $53998.65
remaining value = $351001.35
and
now we get here amount to be reported for patent amortization expense for 2018
amount = ( $351001.35 + $99,000 ) ÷ 5
amount = $90000.27
so amount that should be reported for patent amortization expense for 2018 will be $90000.27