Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2014 when Park's book value was $560,000. The Royce stock was not actively traded. On the date of acquisition, Park had equipment (with a ten-year life) that was undervalued in the financial records by $140,000.

What is the non-controlling interest's share of the subsidiary's net income for the year ended December 31, 2015 and what is the ending balance of the non-controlling interest in the subsidiary at December 31, 2015?

a. $56,000 and $280,000.
b. $56,000 and $224,000.
c. $50,400 and $330,400.
d. $56,000 and $336,000.
e. $50,400 and $218,400.

Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?

Which of the following is not a consideration when determining your asset allocation

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?