Answer:
$38.375
Explanation:
In this question, we apply the Gordon model which is shown below:
Maximum price = Next year dividend ÷ (Required rate of return - growth rate)
= $6.14 ÷ 0.16
= $38.375
We simply divide the dividend rate by the required rate of return so that the accurate and maximum price can come. The growth rate is not given so we do not consider it.
They bought less corn, so they showed a decrease in demand.
Answer: .(a) Arises from peripheral or incidental transactions - corresponds to the definition of gains and losses.
(b) Obligation to transfer resources arising from a past transaction. - Corresponds to Liabilities.
(c) Increases ownership interest. - Investment by owner, Comprehensive Income.
(d) Declares and pays cash dividends to owners. - It is the Distributions to Owners.
(e) Increases in net assets in a period from nonowner sources. - Corresponds to Comprehensive Income.
(f) Items characterized by service potential or future economic benefit. - Is the definition of Assets.
(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners. - Comprehensive Income.
(h) Arises from income statement activities that constitute the entitys ongoing major or central operations. - Corresponds to the definition of Revenues and Expenses.
(i) Residual interest in the assets of the enterprise after deducting its liabilities. - Equity.
Answer:
Sales Tax:
Sales tax is levied only on retail sales. Since the inventory is purchased by Mr. & Mrs. CS for their store, it will not qualify to be a retail sale. Property tax is calculated on the property. In our question, property tax will be calculated on the book value as on 31st December.
Step-I: Solution to the problem where sale is not a retail sale:
No, Mr. and Mrs. CS are not required to pay any sales tax on the purchase of inventory, since it is purchased for store and not qualifies to be a retail sale.
Step-II: Property Lax liability on Inventory:
Now, Mr. and Mrs. CS will be required to pay property tax on the book value of inventory left on 31st December. They can minimize their property tax liability by adjusting the time of their purchases. If they could have purchased the inventory in January, then the inventory could have been sold throughout the year and the book value of the stock left as on 31st December would have been lesser. Thus, the amount of tax would also be lesser
Answer: breach of contract
Explanation:
Some of the duties of an agent include the duty to perform, the duty to account, the duty to notify and the duty of loyalty.
It is the duty of the agent to perform the lawful duties that are expressed in the contract and to also meet the standards of diligence, skill and reasonable care. In such case, an agent who doesn't meet the standards will be liable for the breach of contract.
