Statement I: Gain on bargain purchase is included in the consolidated balance of shareholders' equity at the date of acquisition. Statement II: All business combination expenses, direct, indirect, and share-issue costs are deducted in the consolidated balance of shareholders' equity at the date of acquisition. * O O True, False O True, True O False, True

7

question 4, 5, 6, 7, and 8 are not answered

Section 1250 summary

E12.17

E12.4

LO 7.4 Name the four main special journals.

Can you answer part 4

Problem 9-25 Fudge factors An oil company executive is considering investing $10.1 million in one or both of two wells: well 1 is expected to produce oil worth $3.01 million a year for 10 years; well 2 is expected to produce $2.01 million for 15 years. These are real (inflation-adjusted) cash flows. The beta for producing wells is 0.91. The market risk premium is 9%, the nominal risk-free interest rate is 7%, and expected inflation is 3%. The two wells are intended to develop a previously discovered oil field. Unfortunately there is still a 21% chance of a dry hole in each case. A dry hole means zero cash flows and a complete loss of the $10.1 million investment. Ignore taxes and make further assumptions as necessary. a. What is the correct real discount rate for cash flows from developed wells? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real discount rate b. The oil company executive proposes to add 20 percentage points to the…

Question No 01                                                                   What is a difference between “Musharaka and Mudaraba”? What are the common basic rules between them to be followed? What are the uncommon rules between them?