Answer:
c. The cash flow recover ability test is omitted for an indefinite life intangible asset
Explanation:
The difference in testing for impairment of a finite-life versus indefinite-life intangible asset is <u>the cash flow recover ability test is omitted for an indefinite life intangible asset.</u> The cash flow recover ability test is omitted from the Indefinite life intangible asset because most of the it meet this test easily since their cash flow occur for indefinite life. Whereas under definite life tangible asset, this test is used since their cash flow is limited to some years only.
Answer:
Price to be paid now = $52.89
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>
T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>
Price now = D/(1+r) + P×(1+r)
Dividend , r - rate of return, P -year-end price of stock
Dividend = 4.35, r-16%, P- 57
Price = 4.35/(1.16) + 57/(1.16)= $52.89
Price to be paid now = $52.89
Answer:
yes i agree coz nowadays even in my family, the outsiders give more respect and praise my big brother as he earns big income
Answer:
$0.29 per mile
Explanation:
The computation of the depreciation per miles under the units-of-production method is shown below:
= (Original cost - expected salvage value) ÷ (estimated miles)
= ($33,000 - $1,680) ÷ (108,000 miles)
= ($31,320) ÷ (108,000 miles)
= $0.29 per mile
Simply we deduct the expected salvage value from the original cost and then divide it by estimated miles so that per mile can come
Answer:
a) although both methods result in the same net increase or decrease in cash for the year, net cash flow from operating activities will be different under the two methods
Explanation:
Using the indirect method, computation of cash flow from operating activities begins with net income as shown in the income statement. The FASB also permits both methods but has expressed a preference for the direct method and the direct method shows the specific cash inflow and outflows for each operating activities of the business.
This option that does not align with the differences between the 2 methods is that the cash flow reported under direct and indirect method for operating activities would always remain the same notwithstanding the method used.