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3 years ago

Explain the difference between common and preferred stock? List the advantages and disadvantages of each.

1 answer:

7 0

Common stockholders will not receive any money before the preferred stock holders in the case of the company having to liquidate. So thats a disadvantage. Preferred stockholders tend to get higher dividends paid out to them, which is an advantage.

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A customer has purchased 5,000 shares of ABC Corporation stock in lots of 100 shares over an extended period of time at varying

ozzi

Answer:

c. IRS rules allow the taxpayer to specify which shares being sold

Explanation:

As eahc method will make the capital gain or loss to differ the Internal Revenue Service leaves to the stockholder to decide the method

The default method is the FIFO method which states the first shares purchased are the first sale but, leaves choise to the stockhodler to use specific identification which, is what the statement correctly points out.

The method are not "required" but allowed as the stockholder see fit.

8 0

3 years ago

Suppose a competitive firm has cost, C = (0.002q3) + (22q) + 750, marginal cost, MC = 0.006q2 + 22, and revenue, R =

aniked [119]

Answer:

Options B and C are correct.

Marginal profit is negative.
Profit is positive.

Explanation:

At q = 150

R = 80q = 80(150) = 12,000

C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800

R > C so first is incorrect.

MR = 80

MC = 0.006(150 x 150) + 22 = 135 + 22 = 157

MC > MR so B is correct.

Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200

Profit is positive.

Marginal profit = MR - MC = 80 - 157 = - 77

MR is Negative

3 0

3 years ago

Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:

Vlada [557]

Answer: 75,000 units

Explanation:

Come up with an expression to solve this.

Assume the budgeted production needed is P.

P needs 2 pounds of raw materials per unit so raw materials needed are 2P.

Beginning raw materials for February have to be 30% of the needs of February;

= 30% * 2P

= 0.6P

Ending raw materials for February have to be 30% of March needs so;

= 30% * 100,000 * 2 pounds

= ‭60,000‬ pounds

So;

Budgeted raw materials purchase for February = Raw materials needed + Ending raw materials - Beginning raw materials

165,000 = 2P + 60,000 - 0.6P

1.4P = 165,000 - 60,000

P = (165,000 - 60,000) / 1.4

= 75,000 units

5 0

3 years ago

On January 1, 2013, the stockholders of Phillips and Solina agreed to a consolidation. Because FASBrequires that one party be re

Galina-37 [17]

Answer:

if you pay for money in have discussed about payment for your government and your country in 2012

6 0

3 years ago

uses the weighted-average method in its process costing system. In their first processing department, the company worked on 1,05

zzz [600]

Answer:

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

Explanation:

First Calculate the Physical units in Ending Work in Process Inventory.

Physical units in Ending Work in Process Inventory = Beginning Work in Process inventory + Started Units - Units Completed and transferred out

Thus, Ending Work in Process Inventory = 230 + 1,345 - 700

= 875

Then, Calculate the Equivalent Units of Ending Work in Process Inventory.

Total equivalent units of production - conversion costs 1,050

Less Units Completed and transferred out (700)

Equivalent Units of Ending Work in Process Inventory 350

Finally Calculate the % of completion of the ending inventory in work-in-process with respect to conversion cost

The % of completion = Equivalent units of Ending Work in Process Inventory/ Physical units in Ending Work in Process Inventory × 100

= 350 / 875 × 100

= 40%

3 0

3 years ago