1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
podryga [215]
2 years ago
5

Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Direc

tors declared and distributed a 1% common stock dividend when the market value of its common stock was $51 per share. In recording this transaction, Rick would: Multiple Choice None of these answer choices are correct. Credit paid-in capital—excess of par for $15.30 million. Credit common stock for $15.30 million. Debit retained earnings for $15.30 million.
Business
1 answer:
Bond [772]2 years ago
8 0

Answer:

Debit retained earnings for $15.30 million.

Explanation:

As per the data given in the question,

Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend

In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend  

which means 30 million × 1% = 0.30 million shares issued

Retained earning = (0.30 million × $51)  

= $15.30 million

To common stock A/c =  (0.30 × $1) = $0.30 million

To capital paid in access A/c = (0.30 million × ($51-$1)) =  $15.00 million

( Being stock dividend was issued at 1% )

Hence, Option (d) Debit retained earning for $15.30 million is correct.

You might be interested in
The dividend growth model can be used to value the stock of firms that pay which type of dividends?I. Constant annual dividendII
Fed [463]

Answer:

II and III only

Explanation:

Since the Zero dividend is not possible in most of the scenarios.

The dividend growth model can be used to value the stock of firms that pay Annual dividend with a constant increasing rate of growth and the Annual dividend with a constant decreasing rate of growth.

8 0
3 years ago
Latting Corporation has entered into a 7 year lease for a building it will use as a warehouse. The annual payment under the leas
dsp73

Answer:

The completely stated  question and the multiple-choice answers include:

Latting Corporation has entered into a 7-year lease for a building it will use as a warehouse. The annual payment under the lease will be $4,781. The first payment will be at the end of the current year and all subsequent payments will be made at year-end. If the discount rate is 6%, the present value of the lease payments is closest to:  

A. $31,573

B. $22,257

C. $33,467

D. $26,688

The correct answer is: $26,688 (D)

Explanation:

First of all, we have to calculate the Present Value Interest Factor of an Annuity (PVIFA), which is the factor that can be used to calculate a series of annuities.  The formula for PVIFA is given by:

PVIFA = \frac{1-(1+r)^{-n} }{r}

where:

r = interest rate per period

n = number of periods.

There are also existing PVIFA tables for already calculated PVIFA at different interest rates per period, and at a periodic interest (discount) rate of 6% for 7 years, the PVIFA = 5.5824

Therefore the Present value is calculated thus:

Annual payments × PVIFA for 7 years at 6%

4,781 × 5.5824  (refer to the PVIFA table)

= 26,689.45 (closest to 26,688)

7 0
3 years ago
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whe
PSYCHO15rus [73]

Answer:

see below

From online search the situations as a below:

a. The government gives consumers a subsidy to buy hybrid cars.

b. More automobile producers start producing hybrids.

c. The price of non-hybrid cars falls.

d. The price of batteries for hybrid cars rises.

e. Gasoline prices rise.

Explanation:

A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.

b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.

c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.

d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.

Both the demand and curve curves will not increase.

e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.

6 0
2 years ago
Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $
Yuki888 [10]

Answer:

$1,450

Explanation:

Interest Income = $1,500

Investment Interest expenses = $1,450

Allowed deduction limit investment interest is subject to investment income. So $1,450 is allowed as deduction

8 0
3 years ago
The above plot shows three fits to data a student collected in a load deflection test: linear, power function, and log-linear. t
Viefleur [7K]
It is log-linear which is the best fit to the data?

4 0
2 years ago
Other questions:
  • Why is the perception of Stew Leonard’s as a ""fun place"" so important to their business? Discuss the consumer decision making
    11·1 answer
  • Mackenzie resolves to start exercising three times a week when her membership at a local gym begins, in two weeks. in which stag
    6·1 answer
  • Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success
    7·1 answer
  • What is biosecurity? why is it an important area of research?
    12·1 answer
  • Edmond Biometrics reported net income of $ 700 comma 000 for both last year and the current year. The shares outstanding for the
    9·1 answer
  • An expansionary monetary policy affects aggregate demand
    7·1 answer
  • Consider the market for pens. Suppose that a new educational study has proven that the practice of writing, erasing, and rewriti
    8·1 answer
  • Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
    15·1 answer
  • Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing th
    12·2 answers
  • In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment,
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!