Answer:
A. the lower of cost or market
Explanation:
- Regardless of the inventory cost the flow assumption that that is used to show the invention of the balance sheets is stated in the lower order of the cost to the market and that the cost on an inventory item changes form the time it's acquired or sold.
Answer and Explanation:
The computation of the amount of the LIFO reserve and the LIFO effect related to 2020 is shown below:
Internal reporting inventory $2,688,300
Less: External reporting inventory $1,525,000
LIFO reserve at December 31 2020 $1,163,300
Less: Beginning LIFO credit reserve $1,067,300
LIFO effect for 2020 $96,000
Answer:
Explanation:
a. On the basis of the conversion ratio and the price of the common shares, what is the current conversion value of each preferred share?
Conversion Value = No of Common Shares × Market Price Per Share
= 5 × $20
= $100
b. If the preferred shares are selling at $9696 each, should an investor convert the preferred shares to common shares?
Total Value of preferred Share = Share Price + Dividend Payment Per Share
= $9696 + $10
= $ 9706
Total Value of 5 Common Stock = ((Market Price of 1 Share + Dividend per Share) × 5)
= ((20 + 1) × 5)
= $ 105
No. The investor should not convert the preferred shares to common shares. This is because, the value of one preferred share exceeds the value of the converted common shares by $9601. Thus, based on the value of the converted and non-converted preferred share, the non-converted preferred share is more valuable than the converted one. Thus, the investor should not convert the preferred shares.
c. What factors might cause an investor not to convert from preferred to common stock?
If the value of the converted shares is lower than that of the original preferred share, it makes the conversion devalue an investor's overall investment value.
Additionally, if the investor is unwilling to have residual claim on profits. This is because common stockholders receive their dividends after debt and preference shareholders get their claims. Therefore, the preferred shareholder could see it best to retain their holdings as Preferred and not Common.
Answer: Amelia is wrong because she is a partaker in the crime.
Explanation:
When gang members rob a shop, not all do the robbing at the same time, some drive the robbers, some stay on guard to watch the situation, and they are those that rob, but when they are caught, the law prosecutor goes for all of them involved because they acted as a team to carry out such act. It is same with this scenario, anyone who is fully aware and supported any criminal acts is considered a violator of the law. All people who participated in a criminal act is guilty of the crime.
However, it will only be punishable if there are witnesses and evidence to show that they partook in the event.
Answer:
13.69%
Explanation:
Return on Equity = Net Income / Shareholder's Equity
<em>All Computations are in millions</em>
Shareholder's Equity = Common Stock + Retained Earnings
Shareholder's Equity = $2960 +$735
Shareholder's Equity = $3,695
Net Income = $506
Return on Equity = $506 / $3,695
Return on Equity = 13.69 %
