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horrorfan [7]
3 years ago
10

Ignoring taxes what is the effect on earnings in the year after the shares are granted to executives

Business
1 answer:
ipn [44]3 years ago
4 0

Answer: C. $40 million.

Explanation:

By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.

The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.

Total compensation = No. of shares * fair value of shares

= 15,000,000 * 8

= $120,000,000

Apportioned over 3 years;

= 120,000,000/3

= $40,000,000

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Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12.15) $ 182,250 Variable ma
Gnesinka [82]

Answer:

Profit (loss) 4611

Explanation:

Variable manufacturing cost per unit = Total variable manufacturing cost / Total number of units = 99750 / 15000 = 6.65.

Calculation of special order :

Sales (5300 * 7.80) = 41.340  

(-) Variable manufacturing costs ( 5.300 * 6.65 ) = 35.245  

(-) Export fees ( 5300 * 0.28) = 1.484  

Profit (loss) 4.611

8 0
3 years ago
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Imagine that both the skycar and jet powered wing become sold commercially. What hospitality and tourism businesses might develo
Ede4ka [16]

Explanation:

Companies could improve and implement differentiated services for customers.

What could probably happen is that tour companies offer a personalized service, faster and cheaper with the possibility of purchasing a skycar and jet, as hotel guests usually make a tour itinerary that requires high mobility costs, therefore offering this differentiated and cheaper service directly at the establishment would mean a focused differentiation strategy that would add several benefits, such as increased profitability and customer loyalty.

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3 years ago
When an electrical circuit is capable of conducting current.​
mario62 [17]

Answer: When the switch is closed.

Explanation: The current is the flow of charges, the current can only flow when the switch is closed

3 0
3 years ago
Jennifer received $6,000 interest; $4,800 was tax-exempt and $1,200 was taxable. In earning this income, she had $500 of expense
Marat540 [252]

Answer:

The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.

Explanation:

The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 can be calculated using the following formula:

Interest expenses deductible = (Taxable interest / Total interest) * Interest expenses .................... (1)

Where;

Taxable interest = $1,200

Total interest = $6,000

Interest expenses = $500

Substituting the values into equation (1), we have:

Interest expenses deductible = ($1,200 / $6,000) * $500

Interest expenses deductible = 0.20 * $500

Interest expenses deductible =$100

Therefore, the amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.

3 0
2 years ago
A commercial building with a market value of $200,000 has an insurance policy with an 80 percent coinsurance clause. The owner c
RideAnS [48]

Answer:

$45,000

Explanation:

In this case the market value is $200,000 but the policy limit is only $120,000, with a coinsurance of 80%.

Since the amount of loss = $60,000, the insurance company will pay:

(stop limit / value) x loss = ($120,000 / $160,000*) x $60,000 = 0.75 x $60,000 = $45,000

*the $160,000 value is determined by multiplying the fair market value of the property times the coinsurance = $200,000 x 80% = $160,000

8 0
3 years ago
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