Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
Pension Expense = Service Cost + Interest on Projected Benefit Obligation + Amortization of prior service cost due to increase in benefits - Expected return on plan assets - Amortization of net gain
By putting the following value in the formula, we get
Pension Expense = $2,100,000 + $805,000 + $380,000 - $532,000 - $205,000
= $2,548,000
Answer:
The minimum value is $196,362.95
Explanation:
Giving the following information:
Cash flow= $20,000
The number of years= 20 years
Interest rate= 8%
First, we need to calculate the future value of the cash flows. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {20,000*[(1.08^20)-1]} /0.08
FV= $915,239.29
Now, we can calculate the present value. The present value is the minimum value yo accept.
PV= FV/(1+i)^n
PV= 915,239.29/ 1.08^20
PV= $196,362.95
The perfectly competitive firm charges a price equal to marginal cost
monopolistic competitor firm charges a price greater than marginal cost.
