On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for $53,000. Ranger's net income
1 answer:
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Answer:
Amortization for the year 2017 is $12,000
Explanation:
Given:
Estimated Useful life = 30 years
Cost of Assets on January 1, 2007 = $540,000
Now,
The Amortization per year =
or
The Amortization per year =
or
The Amortization per year = $18,000
Thus,
Accumulated amortization on January 1, 2017
= Amortization per year 18000 × Number of years from 2007 to 2017
= $18,000 × 10
= $180,000
Therefore,
The Book Value of Asset on January 1, 2017 = $540,000 - $180,000
= $360,000
also,
The Revised useful life = 30 years
Therefore,
The Amortization per year =
or
The Amortization per year =
or
The Amortization per year = $12,000
Hence,
Amortization for the year 2017 is $12,000
Answer:
Replacing the values that we have:
And solving for a we got:
So then the premium value for the insurance on this case should be 1840 dollars.
Explanation:
For this case we can define the random variable X as the gain ( in thousand of dollars) of insurance company
We assume that the premium clase charge and amount of a to the company and we know from the info given that:
represent the expected gain in thousand of dollars
The expected value of a random variable X is the n-th moment about zero of a probability density function f(x) if X is continuous, or the weighted average for a discrete probability distribution, if X is discrete.
And using the definition for a discrete random variable we know that :
Replacing the values that we have:
And solving for a we got:
So then the premium value for the insurance on this case should be 1840 dollars.