Answer:
Deferred tax liability = $52,500
Explanation:
Difference between depreciation for financial reporting purposes and tax purposes at December 31 = 250,000
Enacted tax rate = 30%
Tax rate for future years = 40%
so Deferred tax liability = $250,000 x 40% = $100,000
Answer:
$60.87
Explanation:
You can solve this question using time value of money concept. Since this is a dividend paying stock, the recurring dividends are annuities, next year's price is the future value, total duration is 1 year. Use these to calculate the current price; PV
Total duration; N = 1
Interest rate per year ; I/Y = 15%
Future value; FV = 63
Recurring dividend payment; PMT = 7
then compute the present value; CPT PV = 60.87
Therefore, the intrinsic value of this stock is $60.87
I can't understand what u write
Answer:
C. His opportunity cost of one watermelon is 2/3 of a cantaloupe.
Explanation:
Opportunity cost refers to units of production sacrificed of one good to produce an extra unit of another good.
In the given case, for every 1 unit of Cantaloupe, a farmer is required to sacrifice the production of 1.5 units of watermelon.
This means, production of 1 cantaloupe = production of 1.5 water melons.
Thus, to produce an additional unit of watermelon, sacrifice of 1/1.5 cantaloupe is required.
This means, the farmer's opportunity cost of one watermelon in the form of cantaloupe sacrificed is 2/3 of a cantaloupe.
