Answer:
$660,000
Explanation:
The computation of the equity investment is shown below:
= (Common stock balance) + (Earnings × purchased shares ÷ Total outstanding shares) - (dividend × purchased shares ÷ Total outstanding shares)
= ($600,000) + ($400,000 × 200 shares ÷ 1,000 shares) - ($1,00,000 × 200 shares ÷ 1,000 shares)
= $600,000 + $8,0000 - $20,000
=$660,000
<span>D is the correct answer. The business benefits because the owners can share responsibilities, in most cases. However, some people may be silent partners - for example, they may invest in a business, but not have any say in how it is run.</span>
Answer and Explanation:
The journal entry to record issuance of the stock in exchange for the land and building is given below:
Land $237,000
Building $368,000
To Common stock, $8 par value $168,000
To Paid-in capital in excess of par value, common stock $437,000
(Being the issuance of the stock in exchange for the land and building is recorded)
Answer:
$45,000
Explanation:
Given the following :
Coffee makers without timer :
Inventory COST = $20,000
Present valuation = $10,000
Coffee makers with timer:
Inventory cost = $35,000
Present valuation = $35,000
The value of daily grind's inventory will be the sum of the present valuation of both coffee makers:
(Present valuation of coffee maker without timer + present valuation of coffee maker with timer)
($10,000 + $35,000) = $45,000
