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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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True or false: Without knowing the future, it is best to have a cost structure with high variable costs.
konstantin123 [22]

Answer:False

Explanation:It is not obvious which cost structure is better, both have advantages and disadvantages

7 0
2 years ago
Land and other real estate held as investments by endowments in a government's permanent fund should be reported at
VashaNatasha [74]

Complete Question:

Land and other real estate held as investments by endowments in a government’s permanent fund should be reported at

Group of answer choices

A. Historical cost.

B. Fair value less costs of disposal.

C. Fair value.

D. The lower of cost and net realizable value.

Answer:

C. Fair value.

Explanation:

Land and other real estate held as investments by endowments in a government's permanent fund should be reported at fair value of the reporting date except for the exception of life insurance contract, external investment pool, money market investment etc.

The fair value can be defined as the actual or real value of an asset, security, product or item in financial accounting.

5 0
3 years ago
Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Expla
kvasek [131]

Answer:

The explanation of the terms of the option contract change is below

Explanation:

a. Every call option contract will cover more shares

= 500 × 1.1

= 550

for computing the 1.1 (1 + 10%)

The strike price will be reduced for each share to

= 40 ÷ 1.1

= $36.364

b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place

c. Each contract call option will cover more shares

= 500 × 4

= 2,000

The strike price will be reduced for each share to 40 ÷ 4  

= $10

3 0
3 years ago
A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.
ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0
3 years ago
A customer touch point for abacus airlines would be an item such as ________. a mechanic's ability to service the airplanes the
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<span>A customer touch point for abacus airlines would be an item such as reservation desk. 

A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions.  </span>
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3 years ago
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