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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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Price rises from $10 to $11, and the quantity demanded falls from 100 units to 95 units. What is the price elasticity of demand
Sergeeva-Olga [200]

Answer:

0.54

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded  = 100 - 95 = 5

average of both demands = (100 + 95) / 2 = 97.5

Midpoint change in quantity demanded = 5 / 97.5 = 0.051282

midpoint change in price = change in price / average of both price

change in price = $11 - $10 = 1

average of both price = ($11 + $10) / 2 = 10.5

midpoint change in price = 1 / 10.5 = 0.095238

Price elasticity of demand =  0.051282 / 0.095238 = 0.54

6 0
3 years ago
What is an arrangement in which the supplier maintains title to the inventory until it is​ used?.
Advocard [28]

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<u>Consignment inventory</u> is an arrangement in which the supplier maintains title to the inventory until it is used.

<h3>What is Consignment Inventory?</h3>

Consignment inventory is a supply chain model in which a product is sold by a retailer, but ownership is retained by the supplier until the product has been sold. Because the retailer does not actually buy the inventory until it has been sold, unsold products can be returned.

In other Term, Consignment inventory is a supply chain strategy or business agreement in which the consignor (i.e., wholesaler, supplier, manufacturer) gives the goods to a consignee (i.e., the retailer) to sell.

The consignor still owns the products and the consignee will only pay for them once they’ve been sold.

For instance, a retailer may strike up a consignment agreement with a fashion designer and agree to sell the designer’s clothes in-store. The retailer will only pay for the goods that are sold, and the rest will be returned to the designer.

Therefore, we can conclude that the correct option is B.

Your question is incomplete, but most probably your full question was:

What is an arrangement in which the supplier maintains title to the inventory until it is​ used?

A. postponement

B. consignment inventory

C. delayed transfer

D. supplier control

B. consignment inventory

Learn more about Consignment Inventory on:

brainly.com/question/13376533

#SPJ4

3 0
1 year ago
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organiz
LenKa [72]

Answer: D. Common stock

Explanation:

Common stock refers to the security which represents ownership in a corporation.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.

3 0
2 years ago
Kendrick is highly knowledgeable about new developments in computer technology, since he reads everything he can find about the
Sedaia [141]

Kendrick as a personel who is highly knowledgeable as regards new developments in computer technology, and in all means try to explore new computer parts and models can be regarded as an Innovator in the domain of diffusion of innovation curve.

  • The innovation adoption curve can be regarded as the curve that showcase how users falls into different categories, this is usually classified as per their willingness to accept new technology or an idea.

  • Kendrick, in this case try out the new computer part with all willingness.

Therefore, Kendrick can be seen as innovator.

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7 0
2 years ago
Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als
mariarad [96]

Answer:

MPC = 0.4

Explanation:

Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -

Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)

Given : ΔG  ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100

k = ΔY / ΔG = 100 / 60 = 1.67

k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6

MPC = 1 - 0.6 → MPC = 0.4

8 0
2 years ago
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