Answer:
Tony is a 45-year-old psychiatrist who has net earned income of $300,000 in 2020. What is the maximum amount he can contribute to his SEP for the year? 300,000x.25= 75,000 or $57,000
$57,000
Explanation:
Answer:
Jan. 22
Dr Cash $7,140,000
Cr Common Stock $6,300,000
Cr Paid in capital in excess of par $840,000
Feb. 27
Dr Cash $180,000
Cr Preferred Stock $135,000
Cr Paid-In Capital in Excess of Par-Preferred $45,000
Explanation:
Preparation of the entries for January 22 and February 27.
Jan. 22
Dr Cash $7,140,000
(210,000*$34)
Cr Common Stock $6,300,000
(210,000*$30)
Cr Paid in capital in excess of par $840,000
($7,140,000-$6,300,000)
Feb. 27
Dr Cash $180,000
(15,000*$12)
Cr Preferred Stock $135,000
(15,000*$9)
Cr Paid-In Capital in Excess of Par-Preferred $45,000
($180,000-$135,000)
Answer:
after college hope it help :)
Explanation:
Answer:
It will reduce the amount of dividiends it can pay.
Explanation:
As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.
The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.
