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2 years ago

When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid-in capital will:

Business

1 answer:

Aloiza [94]2 years ago

6 0

Answer:

The additional paid-in capital will increase by $850,000

Explanation:

Additional paid up capital: It is that paid up capital which is excess of par value. It is mentioned in the balance sheet when new shares is issued.

The computation of additional paid up capital are shown below:

= Difference of per share price × Number of shares

where,

difference = $22 - $5 = $17

So, the value equals to

= $17 × 50,000

= $850,000

So, the additional paid-in capital will increase by $850,000

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Firm X has total earnings of $49,000, a market value per share of $64, a book value per share of $38, and has 25,000 shares outs

sveticcg [70]

Answer:

$1,456,000

Explanation:

Calculation to determine the value of the total equity of the combined firm, XY, if the purchase method of accounting is used

First step is to calculate the Assets from Firm X

Assets from Firm X = 25,000 ( $38 )

Assets from Firm X= $950,000 (book value)

Second step is to calculate the Assets from Firm Y

Assets from Firm Y = 22,000 ( $21 )

Assets from Firm Y = $462,000 (Market value)

Third step is to calculate the Goodwill

Goodwill = 22,000 ($21 + 2 ) - $462,000

Goodwill= $44,000

Now let calculate the the total equity of the combined firm, XY,

Total equity of XY = $950,000 + $462,000 + $44,000

Total equity of XY = $1,456,000

Therefore the value of the total equity of the combined firm, XY, if the purchase method of accounting is used will be $1,456,000

6 0

2 years ago

In 2019, Jamie earns $7,000 in net investment income and incurs $12,000 of investment interest expense. What is the maximum amou

Katen [24]

Answer:

nothing to be carried forward to next year $7,000 deductible this year;

Explanation:

Investment income is a return on the investment. Interest Expense is the amount of interest paid on the investment amount taken as a loan. The maximum amount to be adjusted as an expense against investment income is the amount of Investment income. Expenses no more than investment income will be adjusted. Nothing to be carried forward to next year.

8 0

3 years ago

An organization has a standing order with a supplier. the organization has ordered the same product in the same quantity monthly

evablogger [386]

Answer:

Modified Rebuy.

Explanation:

Modified Rebuy can be defined as the desires of a buyer to re-purchase or reorder the products previously bought but with certain modifications either in prices, products, suppliers, or terms. The buyer may modify the current purchasing terms because he may not be satisfied with the supplier or may have some new requirements.

In the given case, the modification in supplier has been made by the organization to get a better price. Thus this is an example of modified rebuy.

So, the correct answer is modified rebuy.

7 0

2 years ago

31. A portfolio manager in charge of a portfolio worth $10 million is concerned that stock prices might decline rapidly during t

Angelina_Jolie [31]

Answer:

200

Explanation:

Base on the scenario been described in the question, the position required if the portfolio has a beta 1 is been calculated as follows .

number of contracts required is

Number of contract =10,000,000/(500×100)

Number of contract =10,000,000/50,000

Number of contract =200.

A long put position is needed because the contracts must provide a positive payoff when the market reduces.

6 0

3 years ago

The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to th

MAXImum [283]

Answer:

$14,506

Explanation:

Calculation to determine what the total materials handling cost allocated to the wall mirrors is closest to:

First step is to calculate Material handling cost per labor hour

Material handling cost per labor hour = $16,754.50 / [(12,900 * 9) + (1,500 * 12)]

Material handling cost per labor hour =$16,754.50/(116,100+18,000)

Material handling cost per labor hour = $16,754.50/134,100

Material handling cost per labor hour =0.124940

Now let calculate the Materials handling cost allocated to wall mirrors

Materials handling cost allocated to wall mirrors = 12,900 *9*0.124940

Materials handling cost allocated to wall mirrors = $14,506

Therefore the total materials handling cost allocated to the wall mirrors is closest to:$14,506

8 0

3 years ago