Answer: The following journal entries would apply:
<u>Purchase of franchise:</u>
Debit: Restaurant franchise (intangible asset) $85,000
Credit: Cash $85,000
<u>Amortization of franchise:</u>
Debit: Amortization charge $708
Credit: Accumulated amortization $708
Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.
For the answer to the question above,
It is multiple choice letter a. Face Value
In layman's term face value is the nominal value of a security of the issuer or stocks, it is the original cost of the stock shown on the certificate. For bond i<span>t is the </span>amount<span> paid to the holder at maturity.
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<span>Non-earning caregivers also have an important — and often overlooked — economic value that should be covered by life insurance.</span>
Answer:
A. 0%
Explanation:
The expected rate of return of A = 11%
Expected rate of return of B = 7%
Risk free rate = rfr = 5%
Sdb = 3%
SDa = 18%
Correlation coefficient = 0.50
The formula used to solve for the required answer is in the attachment.
When computed, we have
0.000054-0.000054/0.000036+0.000216
= 0/0.000252
= 0
Therefore the first option is the correct answer
0% should be invested in stock A.
