Answer:
b. decrease no effect
Explanation:
When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.
Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.
Total paid in capital will decrease
Retained earnings will have no effect
Hope that helps.
If one wants to determine the selling price of a product using the total cost method, the management should use Total product costs plus a markup.
<h3>What is the total cost method?</h3>
The actual cost of performance is generally subtracted from the bid price before profit is added to the resultant sum in the total cost approach.
A production income statement is what the total cost method is. In other words, the units of measurement generated are utilized to accrue income and expenses. The units of measure produced during the reviewed period are used to calculate income and expenses.
When employing the whole cost method, the business accounts for all expenses associated with manufacturing the questioned well. The price of the entire product is included.
The final step is to add a markup to the overall cost in order to determine a selling price that will allow for the anticipated level of profit.
To learn more about the total cost method refer to:
brainly.com/question/6480601.
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Answer:
Fixed Overheads Spending Variance = $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = $20,000 Favorable (F).
Explanation:
Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads
= $305,000 - $300,000
= $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads
= ($5.00 × 64,000) - $300,000
= $320,000 - $300,000
= $20,000 Favorable (F)
The cost of equity is calculated as -
Cost of equity = Expected dividend / Current price + Growth rate
Expected dividend = Current dividend * ( 1 + growth rate)
Expected dividend = $ 2.40 * ( 1 + 5.5%) = $ 2.532
Current price = $ 52
Growth rate = 5.5 %
Cost of equity = ($ 2.532 / $ 52) + 5.5 %
Cost of equity = 10.37 %
Answer:
True
Explanation:
The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.
According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required 10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.
10 percent of $15000= 10/100 x $15000
=$1500
