User Account

All Pages

Record the sale under two different assumptions

Assignment Help Accounting Basics
Reference no: EM133068507

Question - On August 1, 2021, Lawn Ltd. purchased 1,000 Datawave Inc. common shares for $44,700 cash with the intention of trading the shares and using the fair value through profit or loss model. Datawave declared a dividend of $1 per common share, which Lawn received on December 28, 2021. On December 31, 2021, Lawn's year end, the shares' fair value was $48,500. Assume that the shares were sold on February 1, 2022. Record the sale under two different assumptions: (a) the shares sold for $46,400, and (b) the shares sold for $43,100.

Reference no: EM133068507

Questions Cloud

What is the average duration of all the assets : The following balance sheet information is available (amounts in thousands of dollars and duration in years) for a financial institution:
Should dropit fast replace the equipment-car : Asuming straight-line depreciation, a 34% effective tax rate, and a cost of capital (i.e. discount rate) of 12%, should DropIt Fast replace the equipment/car
What is the cost of internal common equity : What is the cost of internal common equity if the long-term growth of dividends is projected to be 4% indefinitely (round your answer to two decimal places)?
What is company wacc : A company's capital structure consists of 40% debt and 60% equity. The before-tax cost of debt is 8.125%, the cost of retained earnings is 12%, and the tax rate
Record the sale under two different assumptions : Record the sale under two different assumptions: (a) the shares sold for $46,400, and (b) the shares sold for $43,100
What is relevant cost of debt financing : If the firm's tax rate is 40%, what is relevant cost of debt financing to this company (round your answer to two decimal places)?
What are financial ratios : 1. Identify the types of financing that are typically used during each stage of the successful business enterprise life cycle.
Explain 360-degree best practices and implementation plans : Explain 360-degree best practices and implementation plans. Explain how you will use feedback with your own employees in your future career.
Estimate the cost of equity : Obtain the beta estimate from Bloomberg or Yahoo Finance. Using this beta and the equity market risk premium of 5.96%, estimate the cost of equity?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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