<u>Calculation of ending retained earnings balance after closing:</u>
The balance in ending retained earnings after closing can be calculated as follows:
Balance in retained earnings account before closing $297,000
Add: Revenues $185,000
Less: Expenses $103,700
Less: Dividends $18,000
Ending retained earnings balance after closing = $360,300
Hence, The balance in ending retained earnings after closing is <u>$360,300</u>
Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer: Option A is the right answer
Explanation: Evidences in most cases has shown that MACRS is all about applying convention for one and a half year on assets. So when an entities owns 35-40% of an asset in forth quarter, Mid quarter convention will be applied for only one half of the last quarter, logically one and half month in the last quarter.
Answer:
b
Explanation:
Saving is the difference between disposable income and consumption
Saving = disposable income - consumption
for example, if disposable income is $1000 and consumption is $600. Saving is $400
the higher consumption is, the lower saving would be. the lower consumption is, the higher saving would be
Savings is the total amount of money saved over a period of time
Answer:
r = 4% at this rate a principal of 12,800 returns 16,843.93 in seven years
Explanation:
We will calculate the interest rate at which a principal of 12,800 return 16,843.93 in seven years
Principal 12,800
time 7 years
rate ?
Amount 16,843.93
![(1+r)^{7} = 16,843.93\div12,800\\\\r =\sqrt[7]{16,843.93\div12,800} -1](https://tex.z-dn.net/?f=%281%2Br%29%5E%7B7%7D%20%3D%2016%2C843.93%5Cdiv12%2C800%5C%5C%5C%5Cr%20%3D%5Csqrt%5B7%5D%7B16%2C843.93%5Cdiv12%2C800%7D%20-1)
r = 0.0400
r = 4%
