Answer: O Tim must pay because the agreement to complete the tax returns earlier than originally agreed is additional consideration supporting the modification of the contract.
Explanation:
When Tim agreed to Betty's stipulation that for her to finish the returns earlier, he would have to pay an extra $250, he in effect agreed to the modification of the contract.
Modified Contracts are also enforceable by law so Tim has to pay the $250. There was no proof that Betty acted wrongfully as she had to change her schedule and needed to be compensated for the inconvenience. Also even if the modification was not in writing, it is a generally accepted rule that for contracts to be modified orally, the amount must not exceed $500 which it did not.
Tim is very much liable to pay.
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $292,500
To Common Stock $78,000 (78,000 × $1)
To Additional Paid-in Capital in excess of par - Common Stock $214,500
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
2. Cash A/c Dr $260,000 (2,500 shares × $104)
To Preferred stock $250,000 (2,500 shares × $100)
To Additional Paid-in Capital in excess of par - Preferred Stock $10,000
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
3. Treasury stock A/c Dr $7,100
To Cash A/c $7,100
(Being the treasury stock is purchased for cash)
Answer:
$500
Explanation:
Calculation for amount that the first bank will be short of reserves, after the check has been cleared
Using this formula
Reserve shortage=Loan granted(check)-Excess reserves
Let plug in the formula
Reserve shortage=$1,000-$500
Reserve shortage=$500
Therefore the first bank will be short of reserves, after the check has been cleared, in the amount of:$500
Answer:
A. D1 = 1.50*1.06 = 1.59
D2 = 1.59*1.06 = 1.69
D3 = 1.69*1.06 = 1.79
B. PV of D1=(1.50*1.06)/1.13^1=1.41
PV of D2=(1.50*1.06^2)/1.13^2=1.32
PV of D3=(1.50*1.06^3)/1.13^3=1.24
PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3
PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897
PV of all dividend = 1.407079646 + 1.319915 + 1.238150748
PV of all dividend = 3.965145814288893
PV of all dividend = 3.97
C. PV = 27.05/(1+13%)^3
PV = 27.05/(1.13)^3
PV = 27.05/1.442897
PV = 18.74701
PV = 18.75
D. The most you should pay for it
:
= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3
=22.71
E. Value = (1.50*1.06)/(13%-6%)
Value = 1.59 / 7%
Value = 1.59 / 0.07
Value = 22.714286
Value =22.71
F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.
<span>C.) The amount of money earned in a week being invested in new book purchase
Hope this helps!</span>
