Answer:
b. <em> </em>Additional paid-in capital is decreased
Explanation:
The entry to record acquisition and retirement is:
Debit Credit
Common stock $1
Paid-in capital—excess of par $34
<em> Paid-in capital—share repurchase $5</em>
Cash $30
<em>Conclusion: </em>Additional paid-in capital is decreased.
Solution:
Single factory overhead amount: the amount at which plant overheads or processing overheads are assigned to goods is referred to as single plant overhead rate.
Formula to measure a single plant-wide overhead rate:
Single plant-wide overhead rate :
Different development team overhead rate: this distribution system describes the various divisions engaged in the manufacturing cycle. Factory overheads are assigned to goods on the basis of the overhead cost for each of the manufacturing units.
Formula for calculating various output department overhead:
Multiple production department overhead rate:

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.
Using DLH as the allocation basis to measure a single plant-wide overhead limit.
Single plant-wide overhead rate : 
=
For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.
Using DLH as the allocation basis to measure a single plant-wide overhead limit.
The tax consequence in 2019 is $10584 while the tax consequence from 2020 to 2023 will be $13229.
Bases on the information given, the realized gain will be:
= $90000 - $25000 - $1500
= $63500
The gross profit percentage will be:
= 63500/(90000 - 18000) × 100
= 63500/72000 × 100
= 88.19%
The tax consequence in 2019 will be:
= $12000 × 88.19% = $10584
The tax consequence in 2020 will be:
= $15000 × 88.19% = $13229
The tax consequence in 2021 will be:
= $15000 × 88.19% = $13229
The tax consequence in 2022 will be:
= $15000 × 88.19% = $13229
The tax consequence in 2023 will be:
= $15000 × 88.19% = $13229
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