Zeek has net income of 20000 the book value of equityt-1 is, Accounting Basics

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Zeek has net income of 20000 the book value of equityt-1 is

Question: Zeek has net income of $20,000. The book value of equity(t-1) is $125,000. The cost of equity is 20%. Zeek is proposing disposing of $10,000 of unproductive assets. The net income will not change if Zeek disposes of the unproductive assets. What will Zeek have as abnormal earnings if Zeek disposes of the unproductive assets?

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Accounting Basics: Zeek has net income of 20000 the book value of equityt-1 is

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Accounting Basics: Zeek has net income of 20000 the book value of equityt-1 is

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