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eimsori [14]
3 years ago
7

Diamond’s Corporation has an investment in 5,000 shares of Sigmond Company common stock with a cost of $218,000. These shares ar

e used in a property dividend to stockholders of Diamond’s. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to stockholders of record on June 15. The market value per share of Sigmond stock is $63 on May 25, $66 on June 15, and $68 on July 31. The net effect of this property dividend on retained earnings is a reduction of _______.a. $340,000.
b.$330,000.
c.$315,000.
d.$218,000.
Business
1 answer:
ioda3 years ago
6 0

Answer:

d.$218,000.

Explanation:

5,000 shares x $68 each = 340,000

cost of the shares              <u>  (218,000)  </u>

net gain                                 122,000

the company recognize this gain and then it distribute the shares:

sigmond invesmtent 122,000 debit

        RE                                122,000 credit

RE          340,000 debit

   sigmond investment 340,000 credit

reduction for retained earnings:

+122,000 gain

<u>-340,000 shares</u>

218,000

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Answer:

putting a halt on the layoffs

Explanation:

This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.

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3 years ago
The Macro Islands can produce either 250 bamboo towels or 500 botanical soaps using all its resources. The Micro Islands can pro
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Answer:

The Micro Islands have a comparative advantage in producing botanical soaps.

Explanation:

Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.

The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.

While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.

6 0
2 years ago
At the beginning of 20x1, Sun Angel Corporation began offering a two-year warranty on its products. The warranty program was exp
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Answer:

The correct answer is 1,900,000 dollars.

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This question requires us to calculate the amount that the Sun angel will recognize as warrantly liability in it balance sheet for the year ended at 20x1.

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Debit Warrantly Expense    $7.2M

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3 years ago
A group of sellers who agree to restrict their collective output in order to drive up prices above marginal costs is a:
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A group of sellers who agree to restrict their collective output in order to drive up prices above marginal costs is known as a:

  • <u>Cartel</u>

According to the given question, we are asked to show the term which can be best used to <em>describe </em>a group of sellers who make an agreement to <em>reduce their collective output</em> so that price of goods would increase above their marginal costs.

As a result of this, we can see that this group of people in the business world are known as cartel because they behave unethically so that they could have increased profit on sales.

Read more here:

brainly.com/question/15294015

3 0
2 years ago
Planning for capital expenditures is necessary for all of the following reasons except:
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Answer:

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