Answer:
EPS
Plan I $2.03 per share
Plan II $1.78 per share
Explanation:
Plan I
As this plan is all equity plan, so there is no debt and no interest expense as well.
In the absence of taxes, We will use the EBIT in the calculation of EPS
EPS = Net Earning / Outstanding numbers of shares = $375,000 / 185,000 = $2.03 per share
Plan II
In this levered plan we have debt and equity combination. We also have to deduct the interest expense from EBIT to calculate the net income.
Interest Expense = $2,700,000 x 5% = $135,000
Net Income = EBIT - Interest Expense = $375,000 - $135,000 = $240,000
EPS = Net Income / Outstanding numbers of shares = $240,000 / 135,000 = $1.8 per share
Answer:
a. Favorable leaseholds with an 8-year life
Options:
b. Technology rights with a 3-year life
c. Bottler franchise rights with indefinite life
d. Goodwill
Explanation:
We should notice the income recognize is the 25% of the company's income thus, there is no depreciation nor amortization.
a. Favorable leaseholds with an 8-year life
A favorable leaseholds because the market rate changes when performing the acquisition of the 25% would make for this but, will be amortized over an 8 years spawn <em>Hence is guaranteed to not the cause of the 10,000,000 extra as it should decrease the income of 500,000 which is not what happened.</em>
b.- and intangible which isn't recognize in the company's firm can also generate this difference and be eliminate after 3-years thus is a viable option
c.- the franchise right will still be there but, the valuation of them can change. The franchise while it is indefinite It can lose their market value (imagine a franchise of candels after electricity is invented) Thus, it could be or not.
d.- The goodwill could be checked for imparment and eliminated before the 5 years period or not require a journal entry that year.
The sales price variance is computed by :
(actual sales price-standard/budgeted sales price) x actual units sold
In this case, the actual price is $3600 and the standard price is $3800 and the actual unit sold is 210 copiers
Therefore :
($3600-$3800)x210=$42000 unfavorable sales price variance because you can sell the copier at a higher price of 3800 than the actual price of 3600
Answer:
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Explanation:
the correct answer for apex is superordinate goals
