1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natta225 [31]
3 years ago
8

Fitzgerald Tech owns 20,000 shares of Buchanan Industries, which it purchased for $450,000 in 2016. On March 6, 2020, Fitzgerald

declares a property dividend of all Buchanan shares on the basis of one share Buchanan for every 10 shares of Fitzgerald outstanding. At the declaration date, aggregate market price of the Buchanan shares held by Fitzgerald is $750,000. What should Fitzgerald’s debit to Retained Earnings be for this transaction?
Business
1 answer:
cupoosta [38]3 years ago
8 0

Answer:

The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.

Explanation:

Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.

For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.

The accounting entries needed are:

Debit: Retained Earnings with the amount of the asset distributed.

Credit: Dividend Payable with the amount of the asset distributed.

It is important to note that  the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings

In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.

You might be interested in
In coming years, high-tech growth areas such as computers, biotechnology, and robots are likely to experience a:
Sergio039 [100]

Answer:

C. shortage of skilled labor.

Explanation:

The invention of high-tech (computers, biotechnology, robots, drones, self driving vehicles and so an) is reducing the involvement of skill human labor which will continue incoming years. For example humans carryout the task of carrying-out calculation several years ago, but in recent years computers carry out such works and at a faster pace. Also routine human works such as arranging, bottling, pasting of labels can be carried-out by well programmed out and trained robots. These and many more will cause the shortage of labor(human) in coming years.

5 0
3 years ago
HELLPPPPPPPPPPP PLEAEE!!!!!!!!!
slega [8]

Answer:

D

Explanation:

D is the answer sjkrkdrir

8 0
2 years ago
The product life cycle defines the stages that new products move through as they enter, are established in, and ultimately leave
notsponge [240]

Answer:

Market Attribute – Introduction stage - Low sales

Market Attribute – Growth stage - Opportunities increase

Market Attribute – Maturity stage - Intense competition

Market Attribute – Decline stage - Niche segment  

Consumer Types – Introduction stage - Sylvie

Consumer Types – Maturity stage - Winnie

Consumer Types – Decline stage - Francine

6 0
3 years ago
After the computers dns cache is cleared, where will it most likely look to resolve the domain name the next time you enter ceng
SpyIntel [72]

After the computers dns cache is cleared, where it will most likely look to resolve the domain name the next time you enter cengage.com in your browse to The ISP's DNS server.

An ISP which stands for internet service provider is a company that plays a key role in providing individuals and organizations the access to the internet and other related services like browser.

The Domain Name System or the DNS is a term that is used for the hierarchical naming system which is used to identify computers through the Internet. Especially through the help of an IP address in short.

To learn more about domain here

brainly.com/question/13718390

#SPJ4

3 0
1 year ago
Businesspeople from ________ often arrive after the scheduled meeting time and prefer to spend time building personal trust befo
tatyana61 [14]

Latin American businesspeople frequently come after the agreed meeting time because they prefer to first spend time establishing a good relation. They also conduct meetings informally, allowing them to show up well past the appointed time.

Goals drive business communication. People inside and outside of an organization must be informed of the rules, regulations, and policies of that organization. Business communication is governed by a set of standards and guidelines. Early corporate communication was restricted to written correspondence, telephone calls, etc. However, with the advancement of technology, we now have satellite communication, cell phones, video conferencing, emails, and more to facilitate corporate communication. Effective business communication contributes to an organization's reputation-building efforts.

Any firm depends on its customers. You may maintain effective contact with your consumers and create enduring relationships if you work on developing excellent interpersonal skills.

Customers who are satisfied will promote your company. They advertise and endorse your company. They are, however, also more understanding when things don't go as planned.

Learn more about effective communication here

brainly.com/question/4123103

#SJP4

8 0
1 year ago
Other questions:
  • A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement
    6·1 answer
  • Chica, a women's clothing store, held a "prize drawing" for a $500 shopping spree on saturday that it had advertised throughout
    14·1 answer
  • Federal Reserve Banks directly affect the national economy by:
    9·2 answers
  • Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the locat
    7·1 answer
  • he hedge ratio of an at-the-money call option on IBM is 0.35. The hedge ratio of an at-the-money put option is -0.65. What is th
    6·1 answer
  • Given the following historical demand and forecast, calculate the Tracking Signal in Week 3:Week 1 Demand: 50 Forecast: 49Week 2
    9·1 answer
  • Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $219,400 $585,000 Variable costs 88,000
    13·1 answer
  • ****ECONOMICS****Which situation is an example of a person making use of credit?
    14·2 answers
  • What is the surface area of the Ceral box?<br> Hight is 30 width is 20 side width is 5
    6·1 answer
  • a 2-year treasury security currently earns 6.75 percent. over the next two years,the real interest rate is expected to be 3.18 p
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!