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Flag ques Company A want to estimate future earnings, the following data are available from Company B: net income in year 1: 15000 JD, year
Flag ques Company A want to estimate future earnings, the following data are available from Company B: net income in year 1: 15000 JD, year 2: 25000 JD. Assets include: equipment with FV 10% lower than book value, building with FV 5% higher than book value, patents with 8% lower than book value, discontinued gain 1000 (year 2), extraordinary loss 800 (year 1), equipment depreciation (each year) 10000 JD, building depreciation (each year) 5000 JD, patent amortization (each year) 8000 JD, rent exp. 2000 JD (each year). Compute future earnings. Select one: a. 18710 b. 21290 c. 20710 d. 19290
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