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alexdok [17]
3 years ago
6

Colson Inc. declared a $240,000 cash dividend. It currently has 9,000 shares of 7%, $100 par value cumulative preferred stock ou

tstanding. It is one year in arrears on its preferred stock.
How much cash will Colson distribute to the common stockholders?
a. $114,000.b. $126,000.c. $177,000.d. None.
Business
1 answer:
sineoko [7]3 years ago
8 0

Answer:

Option (a) $114,000

Explanation:

Data provided in the question:

Dividend declared = $240,000

Shares outstanding = 9,000

Interest = 7%

Now,

Value of share = $100 × 9,000

= $900,000

Dividend to Preference Stock Holders Arrears = 7% of Value of share

= 0.07 × $900,000

= $63,000

Dividend to Preference Stock Holders = $63,000

Therefore,

Dividend to Common Stock Holders

= $240,000 - $63,000 - $63,000

= $144,000

Option (a) $114,000

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Determine the gross income of the beneficiaries in the following cases:
olga nikolaevna [1]

Answer:

1. Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.

  • the compensation is included in Justin's gross income.

2. Trina contracted a disease and was unable to work for six months. Because of her dire circumstances, her employer paid her one-half of her regular salary while she was away from work.

  • the compensation is included in Trina's gross income.

3. Coral Corporation collected $1,000,000 on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000, which were not deductible by the corporation.

  • the benefits are included in the company's taxable income, but the premiums paid are deductible

4. Juan collected $40,000 on a life insurance policy when his wife, Leona, died in 2020. The insurance policy was provided by Leona’s employer, and the premiums were excluded from Leona’s gross income as group term life insurance. In 2020, Juan also collected the $3,500 accrued salary owed to Leona at the time of her death.

  • the life insurance policy proceeds are not taxable, but the accrued salaries are taxed

8 0
3 years ago
- Interest: A sum fetched a total simple interest of $ 4016.25 at the rate of 9 %.p.a. in 5 years. What is the sum?
Oduvanchick [21]

Answer:

$8,925

Explanation:

Calculation of simple Interest is by the formula

I= P x r x t

Where I = Interest

p= principal

r= interest rate

t= time in years

In this case

I=$4016.25

p=???

r= 9% or 0.09

t=5 year

Therefore;

$4016.25= P x 0.09 x 5

$4016.25 = P0.45

P=$4016.25/0.45

P=$8,925

The principal is $8,925

3 0
4 years ago
Binder Corp. has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,00
lina2011 [118]

Answer:

2.12 years

Explanation:

The calculation of the payback period is given below:

<u> Year           CF             Cumulative CF </u>

0         $(1,450,000)       $(1,450,000)

1            640,000            (810,000)

2           715,250            (94,750)

3           823,330           728,580

4           907,125           1,635,705

Now payback period is  

= 2 + ($94,750 ÷$823,330)

= 2.12 years

7 0
3 years ago
London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorr
Natalija [7]
They have to recount each thing
5 0
3 years ago
Power deriving from one's personal attraction is called ______ power.
Oksanka [162]

The correct answer to the question is (B) referent power.  

Referent power refers to <u>a type of power that a person attains through his or her interpersonal relationship skills</u>.

Though personalized power seems like an answer it is actually not, it is a type of motive that a person has for power. Legitimate, reward, and coercive all stem from external sources, and thus they do not fit the description in the question.

5 0
3 years ago
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