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3 years ago

The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. Then the conversion ratio:

Business

1 answer:

Degger [83]3 years ago

5 0

Answer:

Conversion ratio is 25:1

Explanation:

Conversion ratio explains the number of shares that you can get for one bond. Here the number of shares that you are getting for 1 $1000 face value bond is 25 shares. Therefore, the conversion ratio is 25:1

The conversation ratio can also be calculated by dividing the par value of a bond for a share's price. As we do not have the price of 1 share, we will use the quantity to decide the conversion ratio.

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The following information is available for Crane Company: Sales $480000 Total fixed expenses $150000 Cost of goods sold 290000 T

r-ruslan [8.4K]

Answer:

The CVP income statement would report a contribution margin $220000.

Explanation:

CVP income statement

sales $480000

total variable cost ($260000)

contribution margin $220000

total fixed expenses ($150000)

operating income $70000

Therefore, The CVP income statement would report a contribution margin $220000.

6 0

3 years ago

Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair

erastovalidia [21]

Given :

Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.

To Find :

What is Bud's recognized gain or loss.

Solution :

This is a transaction of like kind exchange.

So, gain or loss to be recognized is :

$= ( 28000+2000) - 28000\\\\=\$ 2000$

Therefore, option B) is correct.

6 0

3 years ago

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types o

san4es73 [151]

Answer:

Results are below.

Explanation:

First, we need to calculate the plantwide predetermine manufacturing overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

total estimated overhead costs for the period= (625,000 + 900,000 + 105,000 + 175,000 + 300,000 + 75,000)

total estimated overhead costs for the period= $2,180,000

Predetermined manufacturing overhead rate= 2,180,000 / 125,000

Predetermined manufacturing overhead rate= $17.44 per direct labor hour

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe:

Allocated MOH= 17.44*2,500

Allocated MOH= $43,600

Basic:

Allocated MOH= 17.44*6,000

Allocated MOH= $104,640

6 0

3 years ago

In reviewing research on power, you discover that there are three other common sources of power in organizations. Which of the f

Rudiy27

It is information power

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3 years ago

Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust

Sunny_sXe [5.5K]

Answer:

Total cost= $40.3

Explanation:

Giving the following information:

The activity rates associated with each activity pool are:

$8.30 per guest check-in

$20.00 per room cleaning

$4.00 per served meal (not including food).

Tara Washington visited the hotel for a 3-night stay. Washington had 6 meals in the hotel during her visit.

Total cost= 8.30*1 + 20*1 + 4*3= $40.3

8 0

3 years ago