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laiz [17]
3 years ago
9

In 2016, Chartres Inc., issued for $105 per share, 60,000 shares of $100 par value convertible preferred stock. One share of pre

ferred stock can be converted into three shares of Chartre's $25 par value common stock at the option of the preferred stockholder. In April 2017, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?
Business
1 answer:
faltersainse [42]3 years ago
6 0

Answer:

Total amount should be credited to additional paid-in capital from common stocks as a result of the conversion of the preferred stock into common stock: $1,800,000 .

Explanation:

Please find the detailed calculations and explanations as below:

Total Cash amount received from preferred share issuance: 105 x 60,000 = $6,300,000;

The $6,300,000 will be credited into two owner's equity account:

- Common equity = Par value of common stock at the issuance of preferred stock date x Number of preferred stocks issued x Number of common stocks that one preferred stock has the right to converted into = 25 x 60,000 x 3 = $4,500,000.

- Paid-up capital account = Amount of cash receipt ( recorded as Debit) - Amount of common equity ( recorded as Credit) = 6,300,000 - 4,500,000 = $1,800,000 .

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Lelechka [254]

Answer:

1.33 walls

1 wall

Explanation:

Tradeoff is the opportunity cost of taking a particular decision

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives

My doing he outlet, the opportunity to paint is forgone

Amy = 8/6 = 1.33

Bill = 5/5

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2 years ago
The ____ decision involves comparing the pros and cons of in-house production versus outsourcing of a given product or service.
solong [7]
Make-Or-Buy Decision<span>
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3 years ago
Jaune Magazine (JM) must decide whether or not to publish a tell-all story about a celebrity. If the story ends up having major
Nataliya [291]

Answer:

The correct option is A, risk averse

Explanation:

Risk aversion is a situation where a person undertaking a business or an investor tries as much as possible to limit exposure to losses by taking drastic steps to ensure the losses do not materialize.

The publisher in this case is conscious of facing the lawsuit that could result from publishing story and has taken a precautionary measure by not even venturing into the publishing ,let alone a  lawsuit with substantial amount in damages rears its ugly head.

A risk seeking investor would go ahead with the publishing since success could bring a juicy income

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2 years ago
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Anna35 [415]

Answer:

Explanation:

B, Reexamine his budget; he had a $500 deficit this month. plato.

3 0
3 years ago
the price index was 170 in the first year, 180 in the second year, and 195 in the third year. the inflation rate was about a. 5.
OlgaM077 [116]

The inflation rate was 5.9 percent between the first and second years, and 8.3 percent between the second and third years. Hence, A is the correct option.

When we compare the values for any two periods or locations it reveals the average change in prices between the two periods or the average difference in prices between locations, the price index is a measure of relative price changes.

Take the Market Basket's price for the interest-bearing year, divide it by the Market Basket's price for the base year, then multiply the result by 100 to get the Price Index.

Price indices typically pick a base year and set that year's index value to 100. As a proportion of that base year, every other year is expressed. Let 2000 serve as the basis year in this illustration: In 2000, the index's initial value was $2.50; since $2.50/$2.50 = 100%, the index's current value is 100.

To know more about price index: brainly.com/question/27886596

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