Answer:
B. $300,000
Explanation:
The computation of the reduction of retained earning amount is shown below:
= Number of shares of common stock × stock dividend percentage × market value
= 1,000,000 shares × 6% × $5
= $300,000
Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.
All other information which is given is not relevant. Hence, ignored it
The answer for Blank 1: C. total value of the money supply
The answer for Blank 2: D. number of citizens.
GDP per capita describes the average economic output that a single citizens had produce in a certain year.
In order to calculate this, we need to find out the total value of the money supply by adding total Consumption, investments, Government spending, and net export. After this, we divide the total value of the money supply with the number of populations in a country to find the average economic output.
I think it’s B but I could be wrong I’m sorry
The answer is A)an increase in owner's equity
The computation is shown below:
The amount which is to be recovered is equal to the purchase amount i.e $650,000
The present value of bargain purchase option is
= $150,000 × Present value factor at 6% for 6th period
= $150,000 × 0.704961
= $105,744
The amount to be recovers through periodic lease payment is
= $650,000 - $105,744
= $544,256
And, the annual lease payment is
= Recovered amount through periodic lease payment ÷ Cumulative Present value factor for annuity due at 6% for 6 periods
= $544,256 ÷ 5.212364
= $104,416