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Kipish [7]
3 years ago
9

Refer to the following information for Tolan​ Corporation: bullet Common​ Stock, $1.00​ par, 106,000 shares​ issued, 100,000 sha

res outstanding bullet ​Paid-In Capital in Excess of Parlong dash​Common: ​$2,190,000 bullet Retained​ Earnings: $920,000 bullet Treasury​ Stock: 6,000 shares purchased at​ $21 per share If Tolan resold​ 2,500 shares of treasury stock for​ $22.50 per​ share, which of the following statements would be​ true?
A

The Treasury Stock account would decrease by​ $52,500.

B.

The Retained Earnings account would increase by​ $56,250.

C.The​ Paid-In Capital in Excess of

Parlong dash—Common

account would increase by​ $2,500.

D.

The Treasury Stock account would decrease by​ $26,250.
Business
1 answer:
ra1l [238]3 years ago
8 0

Answer:

Option (A) is correct.

Explanation:

Journal entry at time of selling treasury stock :

Cash A/c                     Dr.  $56,250

To  Treasury stock                               $52,500    

To  Paid in capital in excess of par     $3,750

Workings:

cash = 2,500 × 22.5

        = $56,250

Treasury stock = 2,500 × $21

                         = $52,500  

Paid in capital in excess of par = 2,500 × $1.5

                                                   = $3,750

Therefore, this will conclude that

Treasury stock will decrease by $52,500.

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Answer:

The people who buy the stock

Explanation:

I'm not sure but that's my best guess considering they bought it and would more than likely have to sign a contract of liability.

3 0
3 years ago
Does the firm need to alter its choices of C and L to decrease​ cost? A. ​Yes, they need to increase Upper Lincrease L which wou
kherson [118]

Answer:

Yes, they need to increase Upper L which would cause MP Subscript Upper L to decrease and MP Subscript Upper C to increase.

Explanation:

In the specific problem outlined above, the company wants to maximize its revenue and ensure that the production cost is as low as possible for the given quantity of land, cement and the available labor. In order to ensure that this is possible, the company must try to increase the upper L so that there would be an increase in MP (subscript upper C) and a decrease in MP (subscript upper L).

4 0
3 years ago
Which of the following represents a competitive intelligence practice that is both legal and ethical? a. A city council member s
taurus [48]

Answer:

The correct answer is letter "C": An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.

Explanation:

Competitive intelligence refers to the steps companies take to obtain information about their surrounding environment and competitors. If the attempt is to conduct competitive intelligence ethically and legal, top executives in charge should obtain as much information as possible from a <em>legitimate source</em> with the limitations that could imply <em>without compromising the company</em> in business not inherent to its operations.

5 0
3 years ago
A rich donor gives a hospital $100,000 one year from today. Each year after that, the hospital will receive a payment 5% larger
wariber [46]

Answer:

D) $779,843.27

Explanation:

The present value of this donation = Donation in Year 1/(1+ discount rate)^9 + Donation in Year 2/(1+ discount rate)^8 + ….. + Donation in Year 2/(1+ discount rate)^1

= $100,000/(1+9%) + $100,000*(1+5%)/(1+9%)^2 +$100,000*(1+5%)^2/(1+9%)^3…. +$100,000*(1+5%)^9/(1+9%)^10 = $779,843.27

Or we can easily input in excel and generate NPV as file attached; in which the formula is NPV(discount rate, cash inflow year 1 : cash inflow year 10) = (9%, 100000,100000*(1+5%)….,100000*(1+5%)^9) = $779,843.27

Download xlsx
5 0
2 years ago
You produce a glittering crystal substance, Dementia, which looks just like a diamond, but is much cheaper. It soon takes over 7
Stells [14]

Answer:

substitute goods

Explanation:

Substitute goods -

It refers to the cheaper and better quality goods and services , which can be used in place of another product , is referred to as a substitute goods .

These goods can be better than the other one , as the goods might be easily available , lesser price , better quality , more durable , and hence has more demand by the consumers .

Hence , from the given scenario of the question ,

The correct answer is substitute goods .

3 0
3 years ago
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