Downsizing is the reduction of employees in a company's payroll. It involves the elimination of some positions and thus reducing the operational cost of the company. The given statement "Downsizing describes the practice of companies shifting their production overseas" is false. Downsizing does not<span> describe the practice of companies shifting their production overseas</span>
6800*.64= 4352
Ernesto payed $ 4352 in tax
Answer:
The correct option is A,Debit Land and Building, $130,000; Credit Common Stock, $5,000; Credit Paid-in Capital in Excess of Par Value, Common Stock, $125,000.
Explanation:
The sum of the two market values of both land and building is $130,000($100,000+$30,000),which would be debited to land and building account to show that the asset has increased due to new acquisition.
In the common stock account the par value of the shares which is $5,000($1*5000) would be credited to it.
The difference between the market value of assets acquired and the common stock amount which is $125,000($130,000-$5,000) would be credited to paid in capital in excess of par account.
Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.
Sell for scrap= 65,000 - 50,000= 15,000
Continue processing= 150,000 - 80,000 - 50,000= 20,000
