User Account

All Pages

Contract method for reporting profit on long-term contracts

Assignment Help Financial Management
Reference no: EM131893249

1. Certain taxpayers have the option of using either the percentage of completion method or completed contract method for reporting profit on long-term contracts. What impact could the AMT have on this decision? Indicate the sources of your opinion.

2. The spot price of a three year zero coupon bond is 0.8950 and the forward price of a one-year zero-coupon bond beginning in three years is 0.9350.  

What is the four-year spot rate.

Reference no: EM131893249

Questions Cloud

The three bonds have similar maturities and coupons : Three bonds were issued by the same company about four years ago. The three bonds have similar maturities and coupons.
Compare the firm operating profit margin : Towne Inc. had sales of $400,000, with cost of goods $112,000. Compare the firm’s operating profit margin? What was the times interest earned?
Sustainable growth rate of sales in its forecasting : Do you think every company should have a sustainable growth rate of sales in its forecasting?
The cost of capital-cost of new common stock : Difference between flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents flotation cost adjustment.
Contract method for reporting profit on long-term contracts : Certain taxpayers have the option of using either the percentage of completion method or completed contract method for reporting profit on long-term contracts.
What is predicted by the security market line : What does this say about its actual return compared to what is predicted by the security market line?
About the increases in the cost of equity as beta increases : using the four different betas What do you notice about the increases in the cost of equity as beta increases?
What''s the intrinsic value of the company stock : Lincoln national just paid out dividend of 2.48 and dividends are expected to grow 5% each year. what's the intrinsic value of the company's stock?
Fixed depreciation percentages given by macrs : what is the annual depreciation for years 1, 3, and 6 for this assist, using the fixed depreciation percentages given by MACRS?

Reviews

Write a Review

Financial Management Questions & Answers

  Motorist pay for fuel-efficient six-speed transmission

A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four-speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and ga..

  The rate of return to the buyout firm on the acquisition

Estimate the rate of return to the buyout firm on the acquisition after debt service.

  What are the risk-neutral probabilities

What are the up and down factors for the change in project value in each period? What are the risk-neutral probabilities?

  Use the financial formulas and internal rate of return

Healthcare Administrator makes $100,000 per year, borrowed $25000 from lenders to pay for Master's Program at 5.84%. the payback time that the school is giving is 20years but I plan on pay the $25000 back within 6years. Determine how much compensatio..

  The financial risks of participating

The financial risks of participating - or not participating in an ACO; (2) what aspects of an ACO might give rise to concerns for financial and accounting professionals; and (3) whether you think ACOs will afford participants profits.

  Correlation coefficient between the two securities

The covariance between stock A and stock B is 0.02. The standard deviation of stock A is 12% and that of stock B is 25%. Calculate the correlation coefficient between the two securities.

  What is the break-even EBIT

Rise Against Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 200,000 shares of stock outstanding. Under Plan II, there would be 150,000 shares o..

  Articulate the costs and benefits in actual dollar amounts

What challenges did you face when trying to articulate the costs and benefits in actual dollar amounts? As a nurse leader, what can you do to ensure you are making fiscally responsible decisions?

  What are cimarron state total risk-weighted assets

Cimarron State Bank reports the following items on its balance sheet: cash = $200 million; U.S. government securities = $150 million; residential real estate loans = $300 million; and corporate loans = $350 million. What are Cimarron State’s total ri..

  Sales-operating costs-assets-total invested capital

Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating costs to be $265,000, assets (which is equal to its total invested capital) to be $200,000, and its tax rate to be 35%. Assuming t..

  Simple interest on its savings account balances

First City bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a deposit of $8,100 in each bank, how much more money would you earn from your Second Ci..

  Balance in the estimated warranty liability account

A company sells leaf blowers for $170 each. Each unit has a three-year warranty that covers replacement of defective parts. It is estimated that 4% of all leaf blowers sold will be returned under the warranty at an average cost of $30 each. The balan..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd