What is the effect of a $50,000 overstatement of last year's inventory on current years ending retained earning balance?

a. Understated by $50,000.
b. No effect.
c. Overstated by $50,000.
d. Need more information to determine.

Answer: b. No effect.

Business

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Settlement fees and other charges related to a loan transaction must be recorded on the HUD-1 Settlement Statement as:

a. Actual percentages of the loan amount b. Estimated percentages of the loan amount c. Actual dollar amounts d. Estimated dollar amounts

Business

JL Tools is a young start-up company. The company expects to pay its first dividend of $.20 a share in Year 6 with annual dividend increases of 1.5 percent thereafter. At a required return of 12 percent, what is the current share price?

A. $1.77 B. $1.08 C. $1.23 D. $1.90 E. $2.13

Business