Answer:
The amount of net income reported in 2020 income statement would be $75,000.
Explanation:
Pretax accounting income for 2020 = $100,000
Income tax expense for 2020 = Current tax + Reversal of Deferred tax assets
= ($100,000 - $100,000)*25% + ($100,000*25%)
= $25,000
Amount of net income reported in 2020 income statement = Pretax accounting income - Income tax expense
= $100,000 - $25,000
= $75,000
Therefore, The amount of net income reported in 2020 income statement would be $75,000.
Answer:
Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security.
Explanation:
You would use the capital budgeting technique known as net present value (NPV) . In order for a project or investment to be accepted, the sum of the present values of future cash inflows generated by the project should be greater than the initial amount invested or the initial cost. If the PV of the future cashflows is lower than the initial cost of capital, the investment would be rejected. On the other hand, if they are equal, the investor would be indifferent between accepting or rejecting the investment.
Answer:
Pauls' share in partnership=(131000+91000+111000+171000)*0.15%= $75600
Balance in Caitlin’s capital account immediately after Paul’s admission = 131000-(75600-71000)*30%= $129160
Answer: Product-oriented layout
Explanation: The product-oriented layout is a production procedure where the materials and tools are located at the assembly lines.
This layout reduces the cost and time used in the handling of machines whereby optimizing the use of space. The product-oriented layout is mostly used when the same products are made without differences.
Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
