Answer:
c. $18,000 in the common and $2,000 in the preferred.
Explanation:
Carrie's total basis on her investment hasn't changed and it remains at $20,000, what has changed is how that basis is distributed.
Since the current value of common stock + preferred stock = $72,000 + $8,000 = $80,000:
- Carrie's basis in preferred stock = ($8,000 / $80,000) x $20,000 = $2,000
- Carrie's basis in common stock = ($72,000 / $80,000) x $20,000 = $18,000
Answer:
Diluted earnings per share is $2.87
Explanation:
The extent to which the option would dilute the earnings per share to the extent of the difference between the option of price and the share market price.
The shares that are capable of dilute the earnings can be computed thus:
Market price-option price/market price*outstanding options shares
market price is $36
option price is $30
outstanding options shares is 12,600
($36-$30)/$36*12,600=2,100 shares
Diluted earnings per share=$602,000/(208,000+2100)=$2.87
Answer:
Option B is the correct answer,a credit to salaries payable for $10,350
Explanation:
First of all,the net payment of salaries of Arcon Company equal the gross salaries expenses of $14,000 minus the deductions except the federal unemployment tax of $210
Net pay=$14,000-$1,050-$2,600=$10,350
In to record the salaries,the salaries expense account would be debited with $14,000 while the social security and medical taxes payable and federal income taxes payable account are credited with $1,050 and $2,600 respectively.
The net pay of $10,350 is credited to salaries payable in expectation of actual payment
Answer: Fiscal Policy
Explanation: Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, including demand for goods and services, employment, inflation, and economic growth.
Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883-1946), who argued that governments could stabilize the business cycle and regulate economic output by adjusting spending and tax policies. His theories were developed in response to the Great Depression, which defied classical economics' assumptions that economic swings were self-correcting. Keynes' ideas were highly influential and led to the New Deal in the U.S., which involved massive spending on public works projects and social welfare programs. The logic behind this approach is that when people pay lower taxes, they have more money to spend or invest, which fuels higher demand. That demand leads firms to hire more, decreasing unemployment, and to compete more fiercely for labor. In turn, this serves to raise wages and provide consumers with more income to spend and invest. It's a virtuous cycle.
Rather than lowering taxes, the government may seek economic expansion through increases in spending. By building more highways, for example, it could increase employment, pushing up demand and growth. Expansionary fiscal policy is usually characterized by deficit spending, when government expenditures exceed receipts from taxes and other sources. In practice, deficit spending tends to result from a combination of tax cuts and higher spending.
The manager is likely using a graphic rating scale when
assessing his employees. The graphic rating scale is a way of having to rate
the traits of an individual and a way of having to quantify the behaviors of
the individuals that are employed.