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4 years ago

12

A customer buys a municipal bond in the secondary market at 96 that has 4 years to maturity. Two years later, the customer sells

the bond at 99. The tax consequences of this investment are:

1 answer:

Stolb23 [73]4 years ago

3 0

the correct answer will there in the book left page

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Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Direc

Pie

Answer:

The journal entry is as follows:

Retained earnings A/c Dr. $18 million

To common stock $0.30 million

To capital paid in excess A/c $17.70 million

(To record the stock dividend issued at 1%)

Working notes:

Shares issued = 1% of 30 million

= 0.30 million

Retained earnings:

= 0.30 million × $60 per share

= $18 million

Common stock:

= 0.30 million × $1 par value

= $0.30 million

Capital paid in excess:

= Retained earnings - Common stock

= $18 million - $0.30 million

= $17.7 million

8 0

3 years ago

Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is a

Solnce55 [7]

Answer: Razor and blade strategy

Explanation:

The Razor Blade Model is a model that is used by companies to deeply discount or give away a core product hoping that the consumers will buy the more expensive and complementary dependent products.

The razor and blades business model is a model whereby one item is sold at a cheaper price or sometimes given for free so as to increase the sales of its complementary good. For example, ink catridges are required for inkjet printers and software and accessories are used for game consoles. So, selling ink catridges at a low rate can lead to more sales for inkjet printers.

7 0

3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Paladinen [302]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

5 0

3 years ago

Why are conflicts of interests a problem in business?

Nesterboy [21]

<span>Conflict of interest is a very big issue when it comes to business because it may cause wrong decisions. For example, you are business partners and each one of you have different interests and ideas, thus you will not be able to formulate better ideas and create a good business product. It is very important that in a business, you and your business partner must agree in 1 idea and push it through until it become a good product.</span>

3 0

3 years ago

The employees at Violet Inc. are required to complete their work and leave the office premises by 6:00 p.m. Team outings are org

earnstyle [38]

Answer: Norms

Explanation:

According to the given scenario, the violet Inc are basically organized the team outing every month for their employees and the company are expected from every employee to be present in the outing.

The given scenario is basically exemplifies the norms as it refers to the attitude and also the behavior. The norms is one of the social values that helps for developing the personality and the human behavior.

Norms is basically defined the standards or the rules for the human on the basis of their attitude and behavior.

Therefore, Norms is the correct answer.

4 0

3 years ago