Answer:
$1,700
Explanation:
Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.
It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.
Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m
If the tax system in the US is progressive, then those with lower income will pay proportionally less than those with higher income as the latter will have a higher tax rate but in fact the rich people usually have or find a lot of tax loopholes to reduce their taxes so may still not be paying a fair share of their taxes compared to the poor people who don't have these loopholes.
Answer:
The value of shareholders' equity is -$300
Explanation:
Shareholders' equity is the corporation's owners' residual claim on assets after debts have been paid.
Total assets= Total liability + shareholders' equity
Shareholders' equity = Total assets - Total liability
Shareholders' equity = $5,800 - $6,100
Shareholders' equity = -$300
Answer: Uncertainty
Explanation: In simple words, uncertainty refers to a situation under which an individual or an entity is not sure about their belief or decision regarding a particular subject matter.
In the given case, the employees of the store are unknown to the reality of how the new manager will be.
Hence from the above we can conclude that the above case demonstrates uncertainty.
