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cestrela7 [59]
3 years ago
8

Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If managem

ent has set a minimum acceptable return of 8%, the residual income is a.$166,000 b.$105,504 c.$70,336 d.$87,920
Business
1 answer:
bija089 [108]3 years ago
8 0

Answer:

d.$87,920

Explanation:

Residual Income = Net Income - Cost of Investment

therefore

Residual Income = $166,000 - ($976,000 x 8%)

                            = $87,920

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Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o
LenaWriter [7]

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

6 0
3 years ago
Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for
Tanzania [10]

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

3 0
3 years ago
"North Shore Community College reimburses faculty members $.535 cents per mile to go to a workshop. Professor Wales submitted he
Pachacha [2.7K]

Answer:

$347.81

Explanation:

Data provided in the question

Cents per mile to go to workshop = $0.535

And, the total miles traveled = 650.11 miles

So, the reimbursement expect would be

= Cents per mile to go to workshop × the total miles traveled

= $0.535 × 650.11 miles

=  $347.81

In order to find out the reimbursement, we simply multiplied the cents per mile with the total miles traveled

7 0
4 years ago
Which of the following statements (if later established as untrue) would constitute a misrepresentation defense to contract form
schepotkina [342]

Answer:

c. "This farm's well is adequate for household, ranch, and crop needs."

Explanation:

In common law jurisdictions, a misrepresentation is an untrue or misleading statement of fact made during negotiations by one party to another, which induces the other party to enter into the contract.

Only option C above reflects a statement that can be made during negotiation and would most likely induce the acquiring or renting party to enter the contract because it is a benefit on which the price of the property can be determined and buyers respond to perceived benefits.

6 0
3 years ago
The Federal Reserve mandates that banks must keep a certain percentage of money on hand at particular times. What is this referr
mars1129 [50]

Answer:

a. Reserve requirement

Explanation:

As we know that the bank must hold the money percentage of the deposits made in cash as per the federal reserve so the same we called as a reserve requirement.

It is mandatory to keep the specific percentage for particular times

Therefore as per the given situation, the option a is correct

And, all the other options are incorrect

3 0
3 years ago
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