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
Kisachek [45]
3 years ago
6

Sanderson Sofas, a family-owned corporation, issued 6.75% bonds with a face amount of $12 million, together with 2 million share

s of its $1 par value common stock, for a combined cash amount of $22 million. The market value of Sanderson's stock cannot be determined. The bonds would have sold for $9 million if issued separately. Sanderson should record for paid-in capital - excess of par on the transaction in the amount of:
Business
1 answer:
goldfiish [28.3K]3 years ago
7 0

Answer:

$11 million

Explanation:

The computation of the  paid-in capital - excess of par is shown below:

= Combined cash amount - sale value of the bond - share value amount

= $22 million - $9 million - $2 million

= $11 million

The share value amount is computed below:

= 2 million shares × $1

= $2 million

This $11 million would record in the paid-in capital - excess of par.

Since we have to determine this amount so we deducted the sale value and the share value amount from the combined cash amount so that accurate value can come.

You might be interested in
This year, Major Healy paid $40,000 of interest on a mortgage on his home (he borrowed $800,000 to buy the residence in 2015; $9
icang [17]

Answer:

$50,000

Explanation:

The computation of the interest expense for deduction is shown below:

= Interest on a mortgage on his home + Interest on a mortgage on his vacation home  

= $40,000 + $10,000

= $50,000

All other information which is given in the question is not relevant for the computation part. Hence, ignored it  

We simply add both types of interest related to a mortgage on the home

5 0
3 years ago
In what way is globalization a disadvantage for developed nations?
erastovalidia [21]

.

Businesses and corporations relocate to developing nations so they don't have to pay the wages that developed nations pay their workers. Many of these nations do not have the same regulations in regards to workers' rights, benefits, safety, and environmental impact. Because companies aren't subject to these regulations, they are able to save millions of dollars. As a result, businesses shut down operations in the U.S. and other developed nations and move those jobs abroad.

3 0
3 years ago
Donnie Hilfiger has the following balances in its stockholders' equity accounts on December 31, 2015: Treasury Stock, $400,000;
Nana76 [90]

Answer:

Explanation:

The preparation of the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2015 is presented below:

                                                DONNIE HILFIGER

                                                     Balance Sheet

                                         (Stockholders' Equity Section)

                                          As of December 31, 2015

Common stock $350,000

Preferred stock $1,000,000

Additional paid in capital $3,200,000

Total paid in capital $4,550,000

Retained earnings $,1600,000

Total  $6,150,000

Less: Treasury stock - $400,000

Total Stock holders equity $5,750,000

3 0
3 years ago
Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of​ 5,300 anchor
Lena [83]

Answer:

The total cost at 9000 anchor is $473400

Explanation:

To come up with the cost equation used by the manager, we need to find the variable cost per unit.

The total cost at production level of 5300 is = 5300 * 54 = $286200

Out of the total costs, $18000 are fixed.

Thus, variable costs at production of 5300 is = 286200 - 18000 = $268200

The variable cost per unit is = 268200 / 5300 = $50.60

Let x be the number of anchors produced.

The cost equation is = 18000 + 50.60x

At 9000 anchors, the total cost will be,

Total cost = 18000 + 50.60 * (9000)  = $473400

8 0
3 years ago
A primary reason cited by wysocki why doubling the number of people to a task does not reduce the overall duration of the projec
Ahat [919]
Because the all or some could me working different way then others<span />
5 0
3 years ago
Other questions:
  • What are the elements of the circular relationship in managing a sales call?
    10·1 answer
  • Build-up forecasting is __________.
    9·1 answer
  • True or false? the internal revenue code forbids nonprofit hospitals to make a profit.
    6·1 answer
  • ​You've just bought a new flat screen TV for ​$3 comma 000 and the store you bought it from offers to let you finance the entire
    12·1 answer
  • In an answer of at least two well-developed paragraphs, provide a definition of the law of demand and explain how it can be used
    14·1 answer
  • Phytoplankton feed on nutrients brought up by this type of deep cold water current
    11·1 answer
  • An adjusting entry was made on year-end December 31 to accrue salary expense of $2,200. Assuming the company does not prepare re
    11·1 answer
  • Why are slide presentations universal in business environments?
    5·1 answer
  • A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is calla
    9·1 answer
  • Most insurance companies will waive surrender charges in the event EXCEPT:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!