Answer:
(C) Decrease No effect
Explanation:
at purchase:
30,000 shares x 16 dollars each:
Treasury stock 480,000 debit
Cash 480,000 credit
--purchase of own share--
Then we will decrease retained earnings for the difference in the cash proceed on the sale and our treasury stock.
30,000 x 12 dollars = 360,000 cash proceeds
treasury stock 480,000
decrease in RE 120,000
cash 360,000 debit
retained earnings 120,000 debit
Treasury Stock 480,000 credit
Answer: Please refer to Explanation.
Explanation:
Two Companies. We shall call them A and B.
If A and B decide not to advertise, they both get $5,000,000.
If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,
= 5 million - 2 million + 3 million
= $6 million.
A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.
If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.
With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.
However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.
Answer:
Millionaires suggest several paths to building your wealth and becoming a millionaire. ... You should work to make more money so that you can invest more. Saving is also a great way to become a millionaire. In other words, when you earn money, put it in a savings, retirement or some other investment account.
Explanation:
Answer:
Tonya's AGI $70,335
Explanation:
Tonya's AGI:
Revenue from salon $215,900
Salaries paid to beauticians ($113,125)
Nail salon supplies ($58,500)
Salon's operating income $44,275
+
Interest income $28,138
+
Rental revenue from apartment building $78,050
Depreciation on apartment building ($32,250)
Real estate taxes paid on apartment building ($27,750)
Rental income $18,050
-
Alimony paid to her husband $15,000
-
Self-employment tax on salon income $3,128
-
Interest expense on education loan $2,000
=
Tonya's AGI $70,335
Real estate taxes paid on Tonya's house and charitable contributions are itemized deductions (below the line deductions).
Answer:
14%
Explanation:
required rate of return = risk free rate of return + ( risk premium x beta)
5% + 1.5 x 6% = 14%
