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Licemer1 [7]
3 years ago
5

Lewis Industries owns 600,000 shares of Compton Corporation, which it originally purchased for $8 each. On December 1, 2020, Lew

is declares it will distribute these shares to its stockholders as a dividend with a December 31 date of payment. The shares have a market price of $7 on the declaration date and $9 on the distribution date. If Lewis’ carrying value for the shares is $5, how much of a reduction in stockholders’ equity should it record as a result of this distribution?
Business
1 answer:
Semmy [17]3 years ago
6 0

Answer:

The equity will decrease through retained earnigns for 3,000,000 dollars

Explanation:

The company's accounting will distribute the shares at the carrying value of the shares which is $5 per share as for them that is how much they are worth.

600,000 shares x $5 each = $3,000,000

retained earnings 3,000,000 debit

 investment on Comption        3,000,000 credit

The equity will decrease through retained earnigns for 3,000,000 dollars

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Although it is generally the case that service systems have enough capacity, waiting lines result when __________ exceeds capaci
ratelena [41]

Answer:

Demand

Explanation:

Service systems are available to facilitate the customers. Similarly, service systems are designed in such a way to have enough capacity to assist numerous people. When there is an increase in the demand it leads to demand exceeds capacity, and from here the waiting line problem starts. Only a sudden increase in demand can lead to waiting line issue, and the problem is resolved as soon as demand decreases.

7 0
3 years ago
High Step Shoes had annual revenues of $192,000, expenses of $107,200, and dividends of $20,800 during the current year. The ret
zhannawk [14.2K]

Answer:

Debit Income Summary $84,800, Credit High Step Shoes, Capital $84,800

Explanation:

Preparation of what The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Debit Income Summary $84,800

Credit High Step Shoes, Capital $84,800

($192,000-$107,200)

(To close the Income Summary account )

8 0
3 years ago
Which type of account typically has low liquidity
zimovet [89]
<span>Which type of account typically has low liquidity? Certificate of deposit. 

A certificate of deposit is issued by a bank to someone who is depositing money for a set length of time. They have low liquidity, fixed interest rate and a fixed maturity date. 
</span>
6 0
3 years ago
The _____ section of the project plan should describe the major project functions and activities and identify those individuals
OleMash [197]

Answer:

The correct answer is letter "C": project responsibilities.

Explanation:

The project responsibilities within the <em>project plan</em> imply recruiting the staff that is going to be in charge of developing the set of actions that could lead to the organization's success. It outlines the main functions each one of them will have to achieve the goal and what type of personal and professional profile those people should have.

3 0
3 years ago
Carlton Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $126,000.
Andre45 [30]

Based on the information given the amount that must be remitted to the state  for February's sales taxes is $6,000.

Using this formula

Remitted amount=[February Total receipts÷(1+Sales tax rate)]×Sales tax rate

Where:

February Total receipts=$126,000

Sales tax rate=5%

Let plug in the formula

Remitted amount=[$126,000÷(1+0.05)]×0.05

Remitted amount=($126,000÷1.05)×0.05

Remitted amount=$120,000×0.05

Remitted amount=$6,000

Inconclusion  the amount that must be remitted to the state  for February's sales taxes is $6,000.

Learn more here:

brainly.com/question/18369934

5 0
2 years ago
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