Answer: C. Subco borrows in the currency of Eastlaco.
Explanation:
Exchange rate risk only occurs when an entity borrows in a currency that is not their own. This means that if the currency they borrowed in was to appreciate against theirs, they would have to pay more than usual.
Subco is located in Eastlaco so if they borrowed funds in the currency of Eastlaco they would not have to worry about exchange rate risk because they are paying back in their local currency which cannot appreciate or depreciate against itself.
Answer and Explanation:
The computation is shown below
Depletion expense per cubic feet would be
= Total cost ÷ Total cubic feet
= $15.3 million ÷ 8 million
= $1.9125 per cubic feet
Now
Depletion for year 1
= Number of cubic feet extracted × Depletion per cubic feet
= 800,000 × $1.9125
= $1,530,000
And, for the depletion for year 2
= 1,600,000 × $1.9125
= $3,060,000
Answer:
$885,000
Explanation:
Calculation for the total assets should be reported
Using this formula
TOTAL ASSETS =Total of liabilities + Total stockholders' equity
Initial equity $750,000
Income $18,000
($82,000-$64,000)
Dividends ($3,000)
12/31 Total stockholders' equity $765,000
Add Liabilities of $120,000
Total ASSETS $885,000
Therefore On Mirr's December 31, year 1 balance sheet, total assets should be reported at $885,000
Answer:
The correct answer is letter "B": pensions have traditionally been set as a fixed nominal dollar amount per year at retirement.
Explanation:
Pensions are retirement plans employees enroll during their working years. There are different types of pensions being the most common the <em>401(k), Individual Retirement Account (IRA), </em>and <em>Roth IRA</em> each one with particular features. What all of them have in common is that they allow retired individuals to receive a fixed stream of income per year after they officially stop working. Therefore, that is the reason why economists call pensions as "<em>defined benefits</em>" plans.
