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zmey [24]
4 years ago
13

Which of the following is classified as investment? I. existing homes II. business spending on new equipment III. purchase of co

rporate stock IV. taking out a loan to build an office building
Business
1 answer:
slamgirl [31]4 years ago
7 0

Answer:

The answer is II. business spending on new equipment

Explanation:

For a spending to be classified as investment, the money must ne spent or acquiring non-current asset(fixed asset or long-lived asset.

In the question above, only business spending on new equipment will be classified as investment because the business spent money to acquire non-current asset.

Purchase of current stock is a financing activitiy while taking out loan is also a financing activitiy.

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Georgey's Pawn Shop had 1,000 shares of its $1.00 par value common stock issued and outstanding Before a 2 for 1 stock split. Ea
tatiyna

Answer:

None of the above(i.e., all of the above statements are 'True' After the 2 for 1 stock split).

Explanation:

Stock split is a way of increasing total of shares a company's shareholders have while proportionately reducing the share price per unit.In essence , it is about re-denominating the shares of a company.

A 2-1 stock split means for every one share that shareholders possess previously.they now have 2 in place of 1.

In other words,the shareholders now have 2,000 shares in all(2/1*1000)

The par value now=$1*1/2=$0.50

The market price now=$8*1/2=$4

Without mincing words,the last option is the correct answer.

8 0
3 years ago
Melba purchases land from Adrian. Melba gives Adrian $225,000 in cash and agrees to pay Adrian an additional $400,000 one year l
Scorpion4ik [409]

Answer:

  • Melba's adjusted basis for the land at the Acquisition date is $625000
  • Melba's adjusted basis for the land one year later is $645000

Explanation:

The adjusted basis for a property/land is the net cost of the property after adjusting for factors that might attract tax as related to the land

The adjusted basis for the land at the acquisition date is the net cost of the land at the acquisition date which will be ( $225000 + $400000 ) because that was the net cost of the Land at the date of acquisition before an agreement was later reached by Melba requiring him to pay $400000 plus an interest of 5%

Hence the adjusted basis for the land one year later will be

=  ( $225000 + $400000 ) + 5% of $400000

= ( $625000 ) + $20000

= $645000

6 0
3 years ago
The liquidity coverage ratio, which is measured under the Basel III guidelines, is the ratio of a bank's _________ to its ______
skad [1K]

The liquidity coverage ratio, which is measured under the Basel III

guidelines, is the ratio of a bank's liquid assets to its projected net cash

outflow.

<h3>What is Asset? </h3>

Assets are referred to as items owned by an entity which can later be used

to meet debts and other obligations.

Liquidity coverage ratio can be measured by calculating the the ratio of a

bank's liquid assets to its projected net cash outflow.

Read more about Liquidity here brainly.com/question/921670

6 0
3 years ago
On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and Dece
Andrei [34K]

Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

Explanation:

interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.

The interest expense is calculated by these formula

Interest expense = Effective semiannual interest rate × Outstanding balance

Interest expense = (8% ÷ 2) × $359,378 = $14,375

So the interest expense is gotten as %14,375

8 0
3 years ago
Read 2 more answers
Exchange of Stock for Asset On July 14, Peterman Corporation exchanged 1,000 shares of its $8 par value common stock for a plot
Blababa [14]

Answer:

the increase in additional paid in capital is $13,000

Explanation:

The computation of the increase in additional paid in capital is shown below:

= (Average price per share - par value of shares) × number of shares

= ($21 - $8) × 1,000

= $13 × 1,000

= $13,000

hence, the increase in additional paid in capital is $13,000

8 0
3 years ago
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