Answer:
23.16%
Explanation:
net amount of money received by Wliey Oakley = 7,750,000 stocks x $21.39 per stock = $165,772,500
total flotation costs including direct and indirect costs = [($26.30 - $21.39) x 7,500,000] + $1,350,000 + $210,000 = $38,385,000
flotation costs as a percentage of funds raised = $38,385,000 / $165,772,500 = 0.2316 = 23.16%
Answer:
The journal entries are as follows:
(i) Insurance expense A/c Dr. $160
To prepaid insurance $160
(To record the insurance expense)
Workings:
Insurance expense = cost of insurance policy ÷ 36 months
= $5,760 ÷ 36 months
= $160
(ii) Advertising expense A/c Dr. $1,160
To prepaid advertising $1,160
(To record the advertising expense)
Workings:
Advertising expense = cost of advertisement ÷ 24 months
= $27,840 ÷ 24 months
= $1,160
Answer:
It provides definite objective for evaluating performance
Explanation:
Budgeting: It can be defined as the process of deciding an efficient way of spending money.
A budget is a financial plan which shows the estimation of income and expenditure over a specified future period of time. A budget can be made by an individual, business organzations or government of a country.
A budget can either be surplus or deficit.
1. A surplus budget is a budget in which the estimate of income is more than expenditure.
2. A deficit budget is a budget in which the estimate of expenditure is more than income.
Benefits of budgeting includes;
1. It provides definite objectives for evaluating performance.
2. It requires all levels of management to plan ahead on a recurring basis.
3. It facilitates the coordination of activities.
Answer and Explanation:
According to the given question, the computation is shown below:-
a. The amount and character of gain Charlie recognizes from end-of-the-year distributions is
Particulars Amount
Tax basis a $18,750
Ordinary income b $23,750
Stock basis $42,500
(c = a + b)
Distribution $47,500 ($42,500 + $5,000)
b. The stock basis is
Particulars Amount Character
Gain $5,000 Capital ($23,750 - $18,750)
Stock basis - None
