Answer = $ (4,800 )
abnormal Earnigns for Firm C
Abnormal Earning = Actual Earnings - Required Earnings
Required Earnings = Requires Rate * Book Value
REquired Earnings For C= 190,000*12% = 22,800
Abnoraml Earnings for C= 18,000-22,800 = $( 4,800) (Answer)
Consider the following table of Actual earnings: Firm A Actual earnings $ 6,000 10% BVt-1 $100,000...
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