It is impossible to convert the figure for the simple average annual total return to a compound rate of return.
Answer the following statement true (T) or false (F)
False
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Precious metals can be valued above costs because they are immediately marketable at a quoted market price.
Answer the following statement true (T) or false (F)
An effective use of a routine message would be to supply product operation support
Indicate whether the statement is true or false.
Use this information to answer the following question. These facts concern the long-term stock investments of Alpha Corporation: June 1, 2009 Paid cash for the following long-term investment: 5,000 shares Carey Corporation common stock (representing 5 percent of outstanding stock) at $40 per share; 3,000 shares Burns Corporation common stock (representing 3 percent of outstanding stock) at $24
per share. Dec. 31, 2009 Quoted market prices at year end: Carey common stock, $35; Burns common stock, $27. April 1, 2010 A change in policy required the sale of 1,000 shares of Carey Corporation common stock at $38. July 1, 2010 Received a cash dividend from Burns Corporation equal to $.30 per share. Dec. 31, 2010 Quoted market prices at year end: Carey common stock, $39; Burns common stock, $22. The entry to set up the Allowance to Adjust Long-Term Investments to Market in 2009 is: a. Long-Term Investments 16,000 Realized Loss 16,000 b. Realized Loss 16,000 Long-Term Investments 16,000 c. Allowance to Adjust Long-Term Investments to Market 16,000 Long-Term Investments 16,000 d. Unrealized Loss on Long-Term Investments 16,000 Allowance to Adjust Long-Term Investments to Market 16,000
Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero salvage value. The market value of the equipment is currently $32,000. Riener can purchase a new machine for $145,000 and receive $28,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
A. $22,000 decrease B. $22,000 increase C. $18,000 decrease D. $76,000 increase E. $52,000 increase