Answer:
E. The aftertax salvage value is $81,707.76.
Explanation:
The computation is shown below:
Accumulated depreciation is
= $287,000 × ( .2 + .32 + .192 + .1152)
= $237.406.40
Now the book value is
= Purchase value - accumulated depreciation
= $287,000 - $237,406.40
= $49,593.60
And, the selling value is $99,000
So after tax salvage value is
= Salvage value - (Salvage value - book value) × tax rate
= $99,000 - ($99,000 - $49,593.60) × 35%
= $81,707.76.
Answer:
The current value per share is $25.51
Explanation:
P3 = ($2.40x1.10x1.02)/(0.012 - 0.02)
= 26.928
P0 = (($2.40x1.10)/1.12) + (($2.40x1.1)/(1.122 ) + ((($2.40x1.1) + $26.928)/1.123 )
= $25.51
Therefore, The current value per share is $25.51
Answer and Explanation:
The preparation of the bank reconciliation statement is presented below:
Balance as per bank $8,732.00
Add: Deposit in transit $3,500.00
Less: Outstanding checks -$1,486.00
Adjusted bank balance $10,746.00
Balance as per books $8,768.00
Add: EFT received from customer $2,023.00
10791.00
Less: Service charges -$45.00
Adjusted book balance $10,746.00
The shareholder equity is equal to:
$28/share * 13 700 shares = $ 383,600
This is the total capital of Davidson International. Now, assuming that there is no additional income since it is not implied in the problem, the total equity does not change. However, the shares become: 13,700 + 500 = 14 200 shares.
Price per share now becomes:
$383 600 / 14 200 shares = $27/share
Answer:
the absorption costing net operating income last year is $41,200
Explanation:
Absorption Costing Net Operating Income for last year is determined by reconciling the Variable Costing Income to Absorption Costing Income.
<u>Calculation of Absorption Costing Net Operating Income</u>
Variable Costing Income $52,400
<em>Less</em> Decrease in Inventory ( 1,400 × $8) ($11,200)
Absorption Costing Net Operating Income $41,200
Absorption Costing Net Operating Income will be <em>lower than </em>Variable Costing Income.
