Answer: the correct answer is a. Machine B
Explanation:
Machine A average rate return
40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:
40000 X X= 4000000/300000
300000 100% X= 13.33%
Machine B average rate return
50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:
50000 X X= 5000000/250000
250000 100% X= 20%
Machine C average rate return
$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule
$75,000 X X=7500000/500000
$500,000 100% X= 15%
The highest average is the one onf Machine B
Common stockholders will not receive any money before the preferred stock holders in the case of the company having to liquidate. So thats a disadvantage. Preferred stockholders tend to get higher dividends paid out to them, which is an advantage.
Answer:
$16.93
Explanation:
Current stock price = dividend ( 1 + growth rate) / required return - growth rate
$1.4(1.04) / 0.126 - 0.04 = $16.93
Answer:
Related to the transferred equipment, the items that is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2013 is:
C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment."
Explanation:
a) Data and Calculations:
Original cost of the equipment to the parent = $180,000
Transfer of equipment to subsidiary = (118,000)
Accumulated depreciation to December 31, (36,000)
Unaccounted balance = 26,000
b) The unaccounted balance of $26,000 needs to be credited to the parent's Equipment account to remove it from the account. This will have a corresponding debit entry in another account. The only correct entry among the options is C.
If using insider information "happens all the time," as Sue told Lauren, it is likely that the company lacks a strong ethical climate. The ethical climate refers to the moral atmosphere within a work place. The ethical climate takes the values, decisions and choices into consideration and the ultimately what decision was made. The commend "it happens all the time" shows that even though there are other options to be made, the better options are less likely to be chosen.
