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defon
3 years ago
13

Bramble, Inc. buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot i

s $11,500. Bramble will group the CDs into three price categories for resale, as indicated below.
Group No. of CDs Price per CD
1 100 $5
2 800 10
3 100 15

Determine the cost per CD for each group, using the relative sales value method.
Business
1 answer:
svet-max [94.6K]3 years ago
4 0

Answer:

determine the cost per CD for each group using tsv method

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3 years ago
Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.
motikmotik

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is  - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

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5 0
2 years ago
Casey transfers property with a tax basis of $2,000 and a fair market value of $5,000 to a corporation in exchange for stock wit
pochemuha

Answer:

B. $4,700

Explanation:

Calculation for the amount realized by Casey in the exchange

Using this formula

Amount realized in the exchange=Fair market value+ Qualifies deferral transaction+Property transferred Liability-Incurred selling expenses

Let plug in the formula

Amount realized in the exchange=$4,000 +$400 +$600 - $300

Amount realized in the exchange=$4,700

Therefore the amount realized by Casey in the exchange will be $4,700

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2 years ago
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2 years ago
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