Answer:The entry to record the sale will include a Credit toPaid in Capital from treasury stock at $4,000.
Explanation:
Journal entry to record sale of shares
Accounts and explanation Debit Credit
Cash $18,000
Treasury stock $14,000
Paid in Capital from Treasury STOCK $4,000
Calculation
CASH = Number of shares x Price per share
= 400 x $45=$18,000
Treasury stock = Number of shares x Price per share
= 400 x $35=$14,000
Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000
Answer:
Non equity Strategic Alliance
Explanation:
It would have been an equity strategic alliance if one company had bought shares in the other company, but that is not the case in the scenario
A Non Strategic Alliance is one where both companies agree contractually to combine their capabilities and/or resources together for the purpose of achieving a common goal, which describes the situation in the scenario.
Answer:General Agreement on Tariffs and Trade(GATT)
Explanation:
The General Agreement on Tariffs and Trade (GATT) can be referred to as legal agreement between two or more nations, whose overall purpose is to promote international trade by reducing or eliminating trade barriers such as tariffs etc
Answer:
contribution margin ratio= (selling price - unitary variable cost) / selling price
Explanation:
We weren't provided with enough information to calculate the contribution margin ratio, but, I will provide the formula and an example to guide an answer.
<u>To calculate the contribution margin ratio, we need to use the following formula:</u>
contribution margin ratio= (selling price - unitary variable cost) / selling price
<u>For example:</u>
Selling price= $35
Unitary variable cost= 23
contribution margin ratio= (35 - 23)/35
contribution margin ratio= 0.34
E. decrease in both number of shares outstanding and the market price per share
