Answer:
March 1, purchased securities from Benton Corporation:
Dr Investment in securities 500,000
Cr Cash 500,000
May 1, sold half of securities plus accrued interest:
Dr Cash 248,550
Dr Loss on investment in securities 5,000
Dr Brokerage fees 200
Cr Investment in securities 250,000
Cr Interest revenue 3,750
Securities were sold at 98 or $250,000 x 98% = $245,000, which means that the company lost $5,000 with that investment.
Answer:
$23,000
Explanation:
Total dividends = $138,000 (Paid in 2020)
Common stock outstanding = 46,000 shares
Preferred dividend = Number of shares × Par value × 5%
= 11,500 × $100 × 5%
= $57,500
Dividends received by common stock holders in 2020 is;
= Total dividends - Preferred dividend
= ($138,000 × 1) - ($57,500 × 2)
= $138,000 - $115,000
= $23,000
Answer:
22,290 units
Explanation:
Product A sales (S) = 21,900 units
Product A selling price = $11.90
Product A beggining inventory (I)= 3,900
Product A ending inventory (E) = 3,900 x 1.10 = 4,290
Budgeted purchases of product A must account for all of the projected sales and the desired ending inventory, assuming that the company already has a beginning inventory at hand. Budgeted Purchases of product A are given by:
Answer:
a. $44.44
Explanation:
The amortization will be allowed for 10 months in the year (March-December) as the return is filed on a calendar year basis. The deduction allowed per month $4.44 ($800 / 180).
The maximum allowable deduction for amortization of organizational expenditures in the current year is $44.44 ($4.44*10 months).
