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NEW QUESTION: 1
Taylor Corporation has determined that a printing press that it purchased in 2008 for $400,000 has become partially obsolete due to newer equipment purchased in 2010. The press had a book value of
$ 160,000 at December 31, 2010. At the end of the press' life, the estimated value is $40,000, and the net future cash flows from using the machine are estimated to be $90,000. These cash flows have a present value of $73,800 and $32,200, from the future cash flows and residual value, respectively. What amount should Taylor record as "loss due to asset impairment" (Under U.S. GAAP)?
A. $30,000
B. $32,000
C. $54,000
Answer: C
Explanation:
When a fair market is not available, the discounted future cash flows can be used as the cost basis. The present value of the future cash flows is $106,000 ($73,800 + $32,200). The loss is $54,000
($160,000 book value less $106,000).

NEW QUESTION: 2
Assuming that the dividend payout ratio is 0.4, net income is 100, net sales are 400, and the equity is 500, what is the growth rate of earnings of the firm?
A. 10%
B. Not enough information
C. 12%
D. 8%
E. 11.2%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The growth rate of earnings of the firm is equal to the retention rate multiplied by the return on equity (ROE). The retention rate is equal to one minus the dividend payout ratio (1 - 0.4 = 0.6). ROE is equal to net income divided by equity (100/500 = 0.2). The growth rate is 0.6 x 0.2 = 0.12 = 12%.

NEW QUESTION: 3
Your network contains an Active Directory forest. The forest contains two domains named contoso.com and fabrikam.com. The functional level of the forest and the domains is Windows Server 2008 R2.
You have a global group named Group1 in the contoso.com domain. Group1 contains the user accounts in contoso.com. You need to ensure that you can add the user accounts in the fabrikam.com domain to Group1. What should you do?
A. Assign the Domain Controllers group in fabrikam.com permissions to Group1
B. Run the Set-LocalGroup cmdlet.
C. Modify the scope of Group1 to Domain local.
D. Change Group1 to a distribution group.
Answer: C