Answer:
$46,000
Explanation:
We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .
DATA
Fair value = 588,000
Cost = 542,000
Revaluation gain = Current fair value - Cost
Revaluation gain = 588,000 - 542,000
Revaluation gain = $46,000
The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.
In accounting, the formula for common-size percent is (Amount / Base amount) * 100.
<h3>What is a common size income statement?</h3>
This is a financial statement where every line item are expressed as a percentage of the value of sales in other to make analysis easier.
In this analysis, the percentage of the base is the ratio of the line item versus the total amount.
Thus, the formula for common-size percent is (Amount / Base amount) * 100.
Read more about common size statement
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A unique approach known as the capital asset pricing model or CAPM is employed in finance to determine the correlation between the risk of investing in a particular share and expected dividends. The expected returns for security are calculated using the CAPM model.
<h3>CAPM model</h3>
Required rate of return = Risk-free return + Beta (Market return - Risk-free return)
Required rate of return = 2.2% + 1.12 (11% - 2.2%)
Required rate of return = 12.05%
Hence, the correct option is D (12.05%).
The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is.
To learn more about CAPM models visit the link
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Answer:
C) . Equipment used for supplying electric power to residents 1,250,000
Explanation: