Or think about it it’s easy
Answer:
-35 percent will reduce tax revenues.
-48 percent will reduce tax revenues.
Answer:
B) $952,500
Explanation:
Calculation for how much net income must it earn to meet its capital budgeting requirements and pay the dividend
Using this formula
Net income = Dividends + (Capital budget ×Equity)
Let plug in the formula
Net Income=$400,000+($850,000×65%)
Net Income=$400,000+$552,500
Net Income=$952,500
Therefore how much net income must it earn to meet its capital budgeting requirements and pay the dividend dividend,all while keeping its capital structure in balance is $952,500
Answer:
The journal entry which is to be reported on January 1 is shown below:
Explanation:
The journal entry which is to be reported on January 1 for the issuance is as:
On January 1
Cash A/c............................Dr $600,000
Notes Payable A/c..........Cr $600,000
Being the issuance as well as proceeds of the note is recorded
On January 1, the company issues as well as proceeds the note, so, the cash account is debited as the cash is increasing and any increase in asset is debited. Therefore, the cash account is debited. And the note will become payable, which lead to increase in liability and any increase in liability is credited. So, the notes payable is credited
Answer:
Option B $128700
Explanation:
The amortization can be calculated using the following formula:
Amortization for the Year = Assets Value * (Turquoise Extracted / Total Turquoise)
Amortization for the Year = $429,000 * (1950/6,500) = $128,700
The method used is depletioning method because it seems that the company will extract all of the turquoise within the 3.33 year time (6500/1950), which is within the 5 years duration for which the right to extract the turquoise is purchaseed. Otherwise the straigth line method would had be used here.
