Answer:
converting it to an asset on the balance sheet.
Explanation:
Capitalizing a cost means converting it to an asset on the balance sheet. For example, if a company pays $10,000 in cash for piece of equipment, its financial statements don't show that it "spent" $10,000. Rather, they show that it converted $10,000 worth of cash into $10,000 worth of equipment, an asset.
<span>The economic concept that best explains this situation is the law of diminishing returns. The law of diminishing returns explains that as an increased input is put onto an object with all other factors held constant, the output of that product will continually decrease as more and more of that input is added.</span>
Answer:
B. a credit to Interest Revenue for $2700
Explanation:
The interest earned from Bonds receivable is recorded as an interest revenue. The 10% rate of interest given is an annual rate and as the interest is paid semi annually so the semi annual interest payment received is of,
Semi annual interest revenue = 54000 * 0.1 * 6/12 = $2700
Thus, on 31 December 2018, Leonard will record a debit to the cash for $2700 and a credit to the interest revenue for $2700.
Answer:
I will pay $40,9 for the share today
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
Price = $9 / ( 14% - (-8%) )
Price = $9 / 14% + 8%
Price = $9 / 22%
Price = $40.9