Answer:
The correct answer is B. $110,000.
Explanation:
Equity balance mean what a business owes to its owner. The amount invested by owner and net profit earned is part of it is part of equity. Dividend in case of company equals to drawing. It means that equity is net of any dividend payment made by the company.The detail calculation are given below.
Stockholders' equity opening balance $ 40,000
Year net income $ 90,000
Dividend paid ($ 20,000)
Stockholders' equity closing balance $ 110,000
Answer:
The current return to market investors is 6.8%
Explanation:
The return to market investors currently can be expressed the dividends divided by market price.This is computed below:
Return on preferred stock=$5.6/$82.08
=0.068
The return on preferred stock is 6.8% in percentage terms.
Ordinarily,the return on stock is usually made of up dividend yield as calculated as well as gains yield, which is the return derived from increase in market share price of the stock.
Since the increase or decrease in share price is not given in this question, we assume only dividend yield is applicable,hence we calculated return accordingly.
Answer:
1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D
Explanation:
Securities held to maturity --
It requires the positive intent as well as ability.
Unrealized holding gains and losses --
Reported for the income statement of trading securities.
Impairment of securities available for sale --
Requires a recognition in income statement when judged to be other than the temporary.
Losses of investee --
Recognized only to extent of the carrying value under an equity method.
Amortization of a patent that was obtained in a business acquisition --
Reduces the investment account under an equity method if the fair value is higher than the book value.
The correct answer to this situation is the following.
Well, here we are facing an ethical dilemma. Alex thought that she "played her cards" optimally and benefited from the situation. The companies acted in "goodwill" and pay as promised all the expenses when they both sent the checks a weel later. But that is not the kind of conduct that is expected from an ethical professional. She is cheating in order to get money from the companies.
What she should have done is be honest and candidly express the real situation. That should have shown that she is a person of high values that respects the hard-earned money of the company and that she always acts with class, being honest and open.