Answer:
$504,000
Explanation:
Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shares of Vicker.
The consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition transaction will be:
Journal entries
Dr. Cash (12000 shares x $47)..................................$564,000
Cr. Common Stock (12,000 shares x $5).................................$60,000
Cr. Additional Paid-In Capital [(12,000 shares x ($47-$5)].$504,000
Being issue of common of $5 per share at the price of $47 per share
Operating expenses are taken from the normal business operation such as administrative or selling expense. It is part of the operating cost. Markup is defined as the amount added to the cost of goods to fix a selling price. So, to answer the question above: True.
Answer:
Output and employment will increase exerting modest upward pressure on the price level.
Explanation
In simple words, the increased demands for the good would work as an incentive for the producer to produce more and they can also lower their cost of production by producing in mass which will further lead to economies of scale.
More production means more requirement of workers which will eventually lead to more employment opportunities in the country. However, this increase would lead to modest increase in prices due to more purchaser power in the country.
Answer:
C. Moral hazard.
Explanation:
Moral hazard is the risk that a party has not gone into an agreement in compliance with common decency or has given deceiving data about its assets, liabilities, or credit capacity. Moral hazards can be available whenever two parties come into concurrence with each other. Each party in an agreement may have the chance to pick up from acting in opposition to the standards spread out by the agreement.
