Answer:
c) $25,000
Explanation:
A property dividend should be recorded in retained earnings at the property's <u>market value at date of declaration.</u>
<u>The date of declaration is the date on which the firm has made the commitment to pay the dividend. The market value on this date is the value that was considered when the board made the decision to distribute a property dividend and thus is the appropriate measure of the sacrifice to the firm.
</u>
<u>
</u>In application to the scenario, <u>the property dividend will be recorded in retained earnings at the market value at the date of declaration which is Jan 15 </u>NOT on the day it is payable.
Hence, retained earnings will reduce by $25,000
In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend of the Oil stock to shareholders of record on February 1, 20X6, payable on February 15, 20X6. During 20X6, the Oil stock had the following market values:
January 15
$25,000
February 1
26,000
February 15
24,000
Answer:
Yes, her decision was correct because of Net present value rule.
Explanation:
the net present value (NPV) applies to a series of cash flows occurring at different times.
The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications.
Time value of money dictates that time affects the value of cash flows.
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When some one or something solves the problem
The answer to your question, Which one of the following statements regarding taping is most accurate? , would be <span>B. Tape should extend at least halfway down the sides of a container. This is in order to keep it safe from anyone and that you can easily find it.</span>
