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damaskus [11]
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 shar

es 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:
CaHeK987 [17]3 years ago
8 0

Answer:

$504,000

Explanation:

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 shares of Vicker.

The consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition transaction will be:

Journal entries

Dr. Cash (12000 shares x $47)..................................$564,000

Cr. Common Stock (12,000 shares x $5).................................$60,000

Cr. Additional Paid-In Capital [(12,000 shares x ($47-$5)].$504,000

Being issue of common of $5 per share at the price of $47 per share

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Refer to the following table:
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1. What is the value for the cell labeled AA?

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2. What is the value for the cell labeled BB?

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3. What is the value for the cell labeled CC?

  • D. 50

4. What is the value for the cell labeled DD?

  • B. $100

Explanation:

# of           output     marginal       value of         wage       marginal

workers                    product        marginal                         profit

                                 of labor        prod. of L.

0                    0              --                 --                  $300           --

1                 300          300             $600              $300       $300

2                500          200               AA                $300       $100

3                600          100              $200              $300         BB

4                650          CC                 DD                $300      -$200

AA = 200 x $2 = $400

BB = $200 - $300 = -$100

CC = 650 - 600 = 50

DD = 50 x $2 = $100

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4 years ago
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