Answer:
D) $130,000
Explanation:
We can compute this by calculating the total dividends payable to preferred stock holders each year.
Dividends payable = 10,000 * 90 * 0.10 = $90,000
Since the shares are cumulative, the total preferred dividend payable at the end of third year is = $90,000 * 3 = $270,000
So common share in dividend = Total paid - Preferred dividend cumulative
Common Dividend share = 400,000 - 270,000 = $130,000
Hope that helps.
Answer:
A)Interest-rate effect
B)Real-balances effect
Explanation:
✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance
As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is
When the price level decreases, restaurants become busier as more people purchase restaurant meals.
Answer:
Total work in process = $12,900
Explanation:
Provided information,
Cost incurred during the month on this order
Direct Materials = $2,100
Direct Labor = $3,600
Provided overheads are 200% of the direct labor cost = $3,600 
200% = $7,200
Thus month end balance of work in process = $2,100 + $3,600 + $7,200
Total work in process = $12,900
Note: additional information regarding expenses to be incurred is to be ignored, and the above value is the value of work in process.
Total work in process = $12,900
