The total consumer surplus for good X can be calculated in all ways EXCEPT as:

What are the main components of money in the United States today? The main components of money in the United States today are

Komok [63]

Answer:

The answer is option B.

Explanation:

The main components of money in the United States today are the physical cash in the form of currency, and also the deposits that are made in the form of savings in various banks and other depository institutions. This is to take into account that, the asset that can be converted into cash is not considered under these components of money in the US.

7 0

3 years ago

The Employee Theft coverage of the ISO commercial crime program: a. requires that individual employees be specifically named. b.

anastassius [24]

Answer:

(a) requires that individual employees be specifically named.

Explanation:

Referring to new Employ theft policy it states that commercial crime employee theft coverage will insure theft losses that include specific individual with names, positions or jobs.

5 0

3 years ago

The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $73,225 Common Stock $12,173

ankoles [38]

Answer:

Their total assets next year has to be $124,725

Explanation:

Step 1: Determine the initial assets and liabilities

The total assets can be expressed as;

A=C+E

where;

A=total assets

C=common stock

E=retained earnings

In our case;

A=unknown

C=$12,173

E=$91,949

replacing;

A=12,173+91,949=$104,122

Step 2: Determine total liabilities

Total liabilities=initial liability+dividends

where;

Initial liability=$73,225

dividends=$15,000

replacing;

Total liabilities=73,225+15,000=$88,225

Step 3: Determine new assets

Using the formula;

Net profit=new assets-total liabilities

where;

Net profit=$36,500

new assets=unknown=n

total liabilities=$88,225

replacing;

36,500=n-88,225

n=36,500+88,225=$124,725

n=$124,725

Their total assets next year has to be $124,725

6 0

3 years ago

In previous years, Cox Transport reacquired 2 million treasury shares at $22 per share and, later, 1 million treasury shares at

Hoochie [10]

Answer:

24 million shares ; $16 million

Explanation:

The computation of the weightage number of treasury shares are shown below:

Number of shares Price Total

2 $22 $44 million

1 $28 $28 million

Total 3 $72 million

So, the weighted average number of shares would be

= $72 ÷ 3 = 24 million shares

Now the journal entry would be

Cash A/c Dr $64 million (2 million treasury shares × $32)

To Paid in capital - share repurchase A/c $16 million

To Treasury stock $48 million (24 million treasury shares × $2)

(Being the treasury shares are sold)

4 0

3 years ago

Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Compan

Rufina [12.5K]

Answer:

a. See the journal entries in the explanation below.

Retained Earnings is $175,000

Goodwill is $25,000

b. See the journal entries in the explanation below.

Retained Earnings is $175,000

Capital Reserve is $4,000

Explanation:

Note: There are mistakes the names of the companies in the requirements a anb b. These correctly restated before answering the question by as follows:

a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry

2. Record the excess value (differential reclassification entry)

b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry.

2. Record the excess value (differential) reclassification entry.

The answers and explanation are therefore given as follows:

a. Prepare the following consolidation entries required when Consideration is $291,000

1. Record the basic consolidation entry

Accounts Dr ($) Cr ($)

Common Stock 91,000

Retained Earnings (w.1) 175,000

Goodwill (w.2) 25,000

Investment in Scrub Company 291,000

(To record the elimination of investment and stockholder equity.)

2. Record the excess value (differential reclassification entry)

Note that $25,000 is transferred to Goodwill account in part 1 above.

The $25,000 is transferred to Goodwill because when the consideration is greater than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is the Goodwill.

When Net Consideration is more than the net asset value (Stockholder Equity), then the difference is to be transferred to Goodwill.

Workings:

w.1: Calculation of retained earning to be eliminated

Particulars $

Retained Earnings Balance 160,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Fair Value retained earnings to be eliminated 175,000

w.2: Calculation of Goodwill to be recognized

Particulars $ $

Consideration paid for acquisition 291,000

Assets of Scrub:

Asset book value 420,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Assets 435,000

Liabilities (169,000)

Net asset value of Scrub (266,000)

Goodwill to be recognized 25,000

b. Prepare the following consolidation entries required when Consideration is $262,000

1. Record the basic consolidation entry

Accounts Dr ($) Cr ($)

Common Stock 91,000

Retained Earnings (w.3) 175,000

Investment in Scrub Company 262,000

Capital reserve (w.4) 4,000

(To record the elimination of investment and stockholder equity.)

2. Record the excess value (differential reclassification entry)

Note that $4,000 is transferred to Capital Reserve in part 1 above.

The $4,000 is transferred to Capital Rserve because when the consideration is less than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is Capital Reserve.

When Net Consideration is less than the net asset value (Stockholder Equity), then the difference is to be transferred to Capital reserve.

Workings:

w.3: Calculation of retained earning to be eliminated

Particulars $

Retained Earnings Balance 160,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Fair Value retained earnings to be eliminated 175,000

w.4: Calculation of Goodwill to be recognized

Particulars $ $

Consideration paid for acquisition 262,000

Assets of Scrub:

Asset book value 420,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Assets 435,000

Liabilities (169,000)

Net asset value of Scrub (266,000)

Capital reserve to be recognized  (4,000) 

3 0

2 years ago