A machine cost $1,200,000, has annual depreciation of $200,000, and has accumulated depreciation of $950,000 on December 31, 202
1 answer:
You might be interested in
Answer: $700,000
Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.
Retained earnings break even can be computed as follows :-
where,
retained earnings = net income (1- payout ratio)
= $525,000 (1 - 60%)
= $210,000
therefore,
=$700,000
Answer:
The correct answer is "43,000".
Explanation:
The given values are:
Carrying amount,
= $4060000
Face value,
= $3900000
Now,
For June 30, 2021, the Interest expense will be:
=
=
For June 30, 2021, the cash interest will be:
=
=
Now,
On June 30, 2021, the premium's amortization will be:
= Interest expense - Cash interest
=
=
On retirement, the cash paid will be:
=
=
On June 30, 2021, the less carrying amount will be:
= Carrying amount - amortization
=
=
Then,
The loss on retirement as well as ignoring taxes will be:
= Cash paid - less carrying amount
=
=