Answer:
The Journal entries are as follows:
(i) On October 1, 2014
Retained Earnings A/c Dr. $7,350,000,000
To Dividend Payable $7,350,000,000
(To record declaration of dividend on outstanding shares)
Workings:
Dividend Payable = Outstanding shares × Dividend per share
= 3 billion × $2.45
= $7.35 billion
(ii) On October 15, 2014
No Entry
(iii) On October 20, 2014
Dividend Payable A/c Dr. $7,350,000,000
To cash $7,350,000,000
(To record payment of dividend)
Answer:
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Answer:
The correct answer is letter "B": The statement presents the fallacy of composition.
Explanation:
The Fallacy of composition refers to a fallacy by which an individual believes that something is true just because part of the whole is true. Typically, this type of belief leads to mistaken conclusions because what might be right for one person does not necessarily is right for others.
Answer: The correct answer is "d. A firm has spent $2 million on research and development associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected."
Explanation: "d. A firm has spent $2 million on research and development associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected." should NOT be included in the capital budgeting analysis for a new product becaise tjos $2 million represent sunk costs and are not relevant.
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