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avanturin [10]
3 years ago
12

Gonzalez Company has 350,000 shares of $10 par value common stock outstanding. During the year, Gonzalez declared a 10% stock di

vidend when the market price of the stock was $30 per share. Four months later Gonzalez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by
Business
1 answer:
IRINA_888 [86]3 years ago
8 0

Answer:

retained earnings decrease by 1,242,500 as a result of the dividends policy through the year.

Explanation:

Stock dividends:

calcualtion for share issued

350,000 shares x 10% = 35,000 shares

value of the diviends: issued shares x market value

35,000 shares x $30 = 1,050,000 dividends

cash dividends (we have to also account for the new shares)

350,000 + 35,000 = 385,000 shares receive cash dividends

385,000 shares x $0.50 per share = 192,500 dividends

total dividends 1,242,500

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An authentication token is a(n):____________
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Answer:

The correct answer is:

device the size of a credit card that contains access permission data. (A)

Explanation:

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Answer:

sales

Explanation:

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3 years ago
Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed de
Ne4ueva [31]

Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages- <u>the cash flow from disposal is $46720</u>

Explanation:

Given that  the four-year sale is at $50,000.

we know that the book value of the machine must be established in order to determine if a gain or loss has been incurred at disposal.

The depreciation schedule for the $70,000 machine is: given as

Year 1: $70,000 &times; 0.2000 = $14,000

Year 2: $70,000 &times; 0.3200 = $22,400

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8 0
3 years ago
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When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect.  A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
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