Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends <u>$120,000 </u> (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding <u>600,000 </u>
Basic Earnings per share for 2021 <u>$2.47 </u>
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b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
Answer:
$5.97
Explanation:
In order to determine the capital gain of the bond in a year's time,it is first first of all important to calculate the yield to maturity on the bond which is arrived at by applying the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay over its entire life of 15 years which is 15
pmt is the annual interest,7.9%*$1000=$79
pv is the current market price of the bond which is $790
fv is the value of $1000
=rate(15,79,-790,1000)=10.79%
Afterwards,the price of the bond in one year' time can then be calculated:
=-pv(rate,nper,pmt,fv)
The variables in the formula are as above except for nper which would reduce by 1 in a year's time
=-pv(10.79%,14,79,1000)
pv=$ 795.97
Hence the capital gain=price now-price one year ago/price one year ago
price now is $795.97
price one year ago was $790
Capital gain=$795.97-$790=$5.97
Capital gain %= ($795.97-$790)/$790=0.76%
Answer:
Please check the following explanation
Explanation:
Capital losses are not included in the calculation of net investment income. Therefore, $2,000 long-term capital loss would have no effect on investment income. Thus, Porters' investment income will remain $2,500.
Consequently, Porters' can deduct $2,500 of the investment interest expense and the remaining $500 of investment interest expense will be carried over to next year.
Answer:
Journal Entry
Explanation:
1. There are two obligations in this contract
a. keyboard
b. Customer option for future discount
2. Cash Dr, $69,700
To Deferred revenue - keyboard $66,215
To Deferred revenue - discount coupon $3,485
(Being cash is recorded)
Working note:-
Keyboards = 4,100 × $19
= $77,900
Option = $41,000 × (0.25 - 0.05) × 0.50
= $4,100
Allocation
For keyboard
= $77,900 ÷ ($77,900 + 4,100)
= 0.95
Deferred revenue Keyboard = $69,700 × 0.95
= $66,215
Option = 4,100 ÷ ($77,900 + 4,100)
= 0.05
Deferred revenue - discount coupon = $69,700 × 0.05
= $3,485
3. Cash Dr, $69,700
To Deferred revenue Keyboard $69,700
(Being cash is recorded)
Answer:
The amount of the fee is $1689.60
Explanation:
The computation of the amount of the fee is shown below:
= Dollar value × fund charges a 12b-1 fee
= $211,200 × 0.8%
= $211,200 × 0.008
= $1689.60
Since the question has asked the fee amount so we consider the fee charges percentage, not the capital investment Lifecycle fund. Thus, we ignore the Capital Investments Lifecycle Fund as it is not relevant.
Hence, the amount of the fee is $1689.60
