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wlad13 [49]
3 years ago
9

"Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding sha

res of Vicker. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition transaction?"
Business
1 answer:
Ghella [55]3 years ago
8 0

Answer:

Additional paid in capital in excess of par value is any amount of money received through issuing stocks at a higher value than par:

additional paid in capital = ($47 - $5) x 12,000 stocks = $42 x 1,200 = $504,000

Additional paid in capital does not affect retained earnings, so retained earnings should remain unchanged.

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Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the
MAXImum [283]

Answer:

C. every additional missile will reduce consumer goods production more and more.

Explanation:

Due to the fact there are limited resources in the economy, as more of one product is being produced, there would be less resources available to produce the second good and as a result,  the number of the other good that can be produced would reduce.

As more of one good is produced, the opportunity cost of producing the other good increases.

As more missiles are produced, less consumer goods would be produced and the opportunity cost of consumer goods would increase.

This can be understood by looking at the production possibility curve.

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced

It is for this reason that the production possibility frontier is bowed outwards

8 0
3 years ago
The result of a decision made or an action taken is known as a(n):
bazaltina [42]
<span>The correct answer is consequence. The result of a decision made or an action taken is known as a(n): consequence. Inn every decision that you make entitles a consequence right after. The consequence can either be bad or good or so-so.</span>
4 0
3 years ago
Read 2 more answers
Boss asks you to explain the difference between the Cost of Capital and DiscountRate in a multi-year Net Present Value analysis
babymother [125]

Answer:

Cost of capital is the overall rate of return expected by investors while the discount rate is the minimum rate of return used for appraising a project in order to obtain the net present value.

Explanation:

Cost of capital is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure.

Discount rate is the rate used for determining the attractiveness of a project. This rate is used for determining the net present value of a project.

6 0
3 years ago
g You own shares of a company that reported after-tax earnings of $29 million and has issued 2 million shares of stock. The comp
musickatia [10]

Answer: 0.35

Explanation:

The Price to Earnings ratio is used to value companies and is calculated by dividing the company's stock price by its earnings per share.

Earnings per share = 29,000,000/2,000,000 shares

= $14.50

PE ratio = Share price / Earnings per share

= 5.09/14.50

= 0.35

4 0
3 years ago
Company ABC provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. In add
Vladimir79 [104]

Answer:

Company ABC and Emily, a single filing taxpayer

The maximum amount excludable from Emily's gross income for the dependent care expenses, which Emily can report on her tax return is $3,000.

Explanation:

a) Data and Calculations for Emily:

Dependent care flexible spending arrangement deduction = $4,500

Fair market value of the on-site dependent care used = $700

Form W-2 reported dependent care assistance = $5,200

Maximum amount excludable from Emily's gross income for the dependent care expenses Emily can report on her tax return is $3,000.

b) According to the IRS records, Emily can exclude or deduct dependent care benefits provided by a dependent care benefit plan, an amount not exceeding $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for.  Since the number of persons cared for is not disclosed, it is assumed that Emily cared for only one qualifying person.  Therefore, $3,000 is the maximum she is allowed to deduct.

4 0
3 years ago
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