When does a cash dividend become a legal liability?

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but t

Murljashka [212]

Answer:

b. Barb is correct. The agreement must be in writing to be enforceable.

Explanation:

For a contract between two parties to be enforceable, it will need to be verifiable. A phone conversation that involves verbal agreement can be denied by either party. So it is most preferable when contracts are on written form.

In this instance Andy had the following conversation and there was conflict in the agreement between the parties.

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99." Andy: "Too late, we already reached agreement by phone." Barb: "Too bad, it wasn't in writing."

Of the agreement had been in writing then it would have been enforceable on Barb.

6 0

3 years ago

Delaware Company incurred the following research and development costs during 2021: Salaries and wages for lab research $ 400,00

Temka [501]

Answer:

Total R&D Expense = 1040000 USD to be reported in 2021 income statement.

Explanation:

First of all, let me arrange this data in a quite presentable way to facilitate you.

1. Salaries and wages for lab research = 400,000 USD

2. Materials Used in R&D projects = 200,000 USD

3. Purchase of equipment = 900,000 USD

4. Fees paid to third parties for R&D projects = 320,000 USD

5. Patent filing and legal costs for a developed product = 65,000 USD

6. Salaries, wages, and supplies for R&D work performed for another company under a contract = 350,000 USD

Total Cost = 2,235,000 USD

Note: Depreciation for 2021 is 120,000 USD.

Now, we have to list out different costs included in Research and Development Expenses to be included in the income statement.

<em>For R&D expenses, we need to look for costs that are directly related to R&D and add up those costs to calculate the R&D Expense that Delaware should report in its 2021 income statement. </em>

Following cost components will be added together for the Research and Development Expenses:

1. Depreciation For 2021 = 120,000 USD

2. Materials Used in R&D projects = 200,000 USD

3. Fees paid to third parties for R&D projects = 320,000 USD

4. Salaries and wages for lab research = 400,000 USD

Total R&D Expense = 120,000 + 200,000 + 320,000 USD + 400,000 USD

Total R&D Expense = 1040000 USD to be reported in 2021 income statement.

7 0

3 years ago

Layla works during her meeting to pull together the ideas of her committee members into a coherent whole. Layla is performing a

Troyanec [42]

Answer: C

Explanation:

Layla works during her meeting to pull together the ideas of her committee members into a coherent whole. Layla is performing a task . task, duty, job, chore, stint, assignment mean a piece of work to be done. task implies work imposed by a person in authority or an employer or by circumstance. charged with a variety of tasks duty implies an obligation to perform or responsibility for performance.

7 0

3 years ago

Read 2 more answers

Your company is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project

lianna [129]

Answer:

a)Project 2 should be selected

b) Project 1 should be selected

Explanation:

We would compute the Present Value(PV) of the cash inflows from the the two projects and compare them.

PV of cash inflow = A × (1- (1+r)^(-n)/r

A-cash inflow, r- required return, n - number of years

Project A = 52,000× (1 - 1.15^(-6)/0.15= 196,793.1

Project 2= 39,000 + ((1 - 1.15^-7)/0.15= 201,256.36

Project 2 should be selected

Project 1 = 52,000× (1 - 1.12^(-6)/0.15=213,793.1808

Project 2= 39,000 + ((1 - 1.12^-8)/0.15= 193,737.9509

Project 1 should be selected

3 0

3 years ago

intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,0

guajiro [1.7K]

Answer:

Date Account Titles and Explanation Debit Credit

Land $84,000

Common stock $12,000

Paid in capital in excess of par value $72,000

Workings:

Amount of Common stock = Number of shares * Paid in capital per share

= 6,000 shares * $2

= $12,000

Amount of excess of paid in capital = Market value of land - Amount of common stock

= $84,000 - $12,000

= $72,000

8 0

4 years ago

When does a cash dividend become a legal​ liability?

When does a cash dividend become a legal liability?