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3 years ago

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Ticasso Co. issued 5,000 shares of its $1 par common stock, valued at $100,000, to acquire shares of Eurat Company in an all-sto

ck transaction. Ticasso paid the investment bankers $35,000 and will treat the investment banker fee asA) an expense for the current year.B) a prior period adjustment to Retained Earnings.C) additional goodwill on the consolidated balance sheet.D) a reduction to additional paid-in capital.

1 answer:

k0ka [10]3 years ago

5 0

Answer:

D) a reduction to additional paid-in capital.

Explanation:

The investment banker fee is taking from the 100,000 dollars before purchasing Eurat Company shares thus, we purchase shares for:

proceeds from sales 100,000 - banker fees 35,000 = 65,000 net proceeds to purchase Eurat Company

the face value of the stock is 5,00 0shares x $1 = 5,000

additional paid-in $65,000 - $5,000 = $60,000

<u><em>The journal entry will be:</em></u>

Eurat company investment 65,000

common stock 5,000

additional paid-in 60,000

A lower fee would increase the available for investment and additional paid-in as common stock cannot increase higher than the face value

this makes option D correct.

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Munchak Company’s relevant range of production is 9,000 to 11,000. Last month the company produced 10,000 units. Its total manuf

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Answer:

1. True, 2. True, 3. True, 4. False, 5. False, 6. True, 7. True, 8. True, 9. False, 10. False, 11. False, 12. False

Explanation:

1. The variable manufacturing cost will remain same as cost behavior patterns remain unchanged.

2. Total fixed cost increases as level of production increases.

10000 units: 10050 units

Variable cost= (70x10000) x40%=$280000 (70x10050)x40%=$281400

Fixed Cost-= 700000-280000= $420000 703500-281400=$422100

3. Increase in level of production will cause the total manufacturing cost to increase.

4. At 10000 units, $\frac{420000}{10000}$ = 42/unit

10050 units, $\frac{422100}{10050}$ = $42/unit

5. The total variable manufacturing cost will be greater than last month

At 10000 = (70x10000) x 40% = $280000

At 10050 = (70x10050) x 40% = $281400

6. At 10000 = 70 x 10000 = $700000

At 10050 = 70 x 10050= $703500

7. Cost behavior remain unchanged

70 x 40% = $28

8. Total manufacturing cost = total manufacturing variable + total manufacturing fixed cost

703500 = 281400 - Fixed cost

Fixed cost = $ 422100

9. Total manufacturing cost = 70 x 10050 = $703500

10. $\frac{422100}{10050}$ = $42/ unit

11. Increase in level of production will increase total manufacturing variable cost

(70x10000) x 40% = 280000

(70x10050) x 40% = 2814000

12. Cost behavior pattern unchanged

$\frac{703500}{10050}$ = $70

8 0

4 years ago

Use the following 10% interest factors. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 7 periods 4.86842 9.4

katen-ka-za [31]

Answer:

The cost of the machine will be $85,358.88‬

Explanation:

To calculate the present value of the machine is given by:

Present value=$16000*Present value of annuity factor(10%,8)

=$16000*5.33493

= $85,358.88‬

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3 years ago

After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing throu

Len [333]

Answer:

a) Total Interest Paid in 24 months is $1680

b) Total Cost of the car is $12180

c) Monthly Payment is $420

d) Annual Percentage Rate is 10.47%

Explanation:

(a) Loan Amount = $8400

Interest Rate = 10%

Monthly Interest = 8400 x (10%/12)

= $70

Total Interest Paid in 24 months = 24 x 70

= $1680

(b) Total Cost of the car = Loan Amount + Interest Paid + Down payment

= 8400 + 1680 + 2100

= $12180

(c) Monthly Principal Payment = 8400/24

= $350

Monthly Payment = Monthly Interest Payment + Monthly Principal Payment

= 70 + 35

= $420

(d) Annual Percentage Rate = (1+ 0.10/12)12 - 1

= 0.1047

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3 years ago

Jake borrowed $800,000 from the Gateway Bank to purchase a fishing boat. He keeps the boat at a dock owned by the Harbor Company

atroni [7]

Answer:

1. Gateway Bank

3. White Shark Fishing Company

Explanation:

In the scenario being described the two entities that have an insurable interest in Jake or his property would be Gateway Bank and The White Shark Fishing Company. The Bank has an insurable interest because if something where to happen to Jake they would most likely incur the loss of $800,000 that Jake borrowed, the same goes for the boat since without the boat Jake can't earn income to pay back the loan. The White Shark Fishing Company on the other hand entrusts Jake with their cargo, meaning if anything happens to Jake or the Boat they would lose all of their cargo that Jake is transporting. This would cause them to have to incur those loses.

b. If Jake operated the boat on behalf of the White Shark Fishing Company he would have an insurable interest on the boat since he would lose the income that he makes with the boat. Also, if Jake has a contract and is responsible for the boat he might even have to incur the damages for the boat.

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3 years ago

1. How business driven MIS, value driven business, E-business, and information security relate to each other. 2. Please provide

KATRIN_1 [288]

Answer:

2. Google is an example for this type of business.

Explanation:

These terms (MIS, Value driven business, E-Business, and information security) are interlinked in today technological era of businesses.

As the example is given above about google, it is being explained right here.

As we all know google is a technology based organization which is working on the concept of Management information system. Its recent case study shows that how this organization is a value driven business.

Google actually, takes really care about its employees, it has all necessary facilities to offer for its employees such as on-site doctors, cafeteria led by famous chefs, so that means they are value driven business too.

it is also providing E-business facilities to other businesses. And its information security is one of the top on list.

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3 years ago