Answer:
Correct Answer:
B) Royalty Expense
Explanation:
<em>A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.</em>
Answer:
The After Tax Cost of Debt = 0.072 or 7.2%
Explanation:
The question is to determine the After Tax Cost of Debt for Rolling Stone.
This is carried out as follows
Step 1: When we decide to calculate the Yield to Maturity, it should be noted that Market Value = Par Value
Therefore,
Coupon Rate which is the same as the Yield to Maturity (YTM) = 12%
Step 2: Based on this derivative, therefore,
After Tax Cost of Debt = Yield TO Maturity Rate (1-Marginal Tax Rate)
= 12% (1-40%)
= 0.12 (1-0.4)
The After Tax Cost of Debt = 0.072 or 7.2%
Answer:
$420,000
Explanation:
Given the above information,
Dividend
= $75,000 × 40%
= $30,000
Share in income
= $375,000 × 40%
= $150,000
Balance in investment account
= Beginning balance + Share in income - Dividend
= $300,000 + $150,000 - $30,000
= $420,000
Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000
Answer:
True
Explanation:
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