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Sholpan [36]
2 years ago
10

Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stoc

k for more than the price at which the stock was originally issued. What is the effect of the purchase of the treasury stock on each of the following?
Total paid-in capital Retained earnings
a. decrease decrease
b. decrease no effect
c. no effect decrease
d. no effect no effect
Business
1 answer:
denis23 [38]2 years ago
5 0

Answer:

b. decrease no effect

Explanation:

When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.

Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.

Total paid in capital will decrease

Retained earnings will have no effect

Hope that helps.

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Prior to liquidating their partnership, Joyce and Xi had capital accounts of $50,000 and $105,000, respectively. Prior to liquid
Iteru [2.4K]

Answer:

Joyce cash distribution   = $262500

Explanation:

given data

Joyce capital = $50,000

Xi capital = $105,000

liabilities = $10,000

assets sold = $190,000

to find out

we consider Determine the amount received by Joyce as a final distribution from liquidation of the partnership

solution

we carrying value of non-cash asset prior to liquidation is

value of non-cash asset prior to liquidation = $50,0000 + $105,000 + $10,000

value of non-cash asset prior to liquidation =  $615000

so Profit on Liquidation  is = value of non-cash asset prior to liquidation - Sale of Asset

Profit on Liquidation  is = $615000 - $190,000

Profit on Liquidation  is = $ 425000

and here since

Joyce and Xi share income and losses equally

so Joyce share of profit will be

Joyce share of profit  = 50% × $ 425000

Joyce share of profit  = $212500

and

so Joyce cash distribution  will be

Joyce cash distribution  = Joyce share of profit + Joyce capital

Joyce cash distribution   = $212500 + $50,000

Joyce cash distribution   = $262500

4 0
3 years ago
The city council is getting ready to build a new power plant, which is expected to bring jobs to the community, but also generat
Dominik [7]

Answer:

environmental racism

Explanation:

Based on the information provided within the question it can be said that this scenario could possibly be classified as environmental racism. This is a concept which describes the environmental discrimination that occurs in many geographical locations both in practice as well as on paper. All of which is based on a racialized context.

4 0
2 years ago
Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quant
kondaur [170]

Answer:

the answer is B

Explanation:

because there are less things in the number and if this dos not help you I am sorry I am not good at math

3 0
3 years ago
Hailey Corporation pays a constant $9.45 dividend on its stock. The company will maintain this dividend for the next 13 years an
Sloan [31]

Answer:

$64.76

Explanation:

The current share price can be determined by calculating the present value of the dividend

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow from year 1 to 13 = 9.45

I = 10.7

PV = 64.76

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
In hierarchical organizational structure, communication between employees tends to
Lubov Fominskaja [6]
Multiple times and divide
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