Answer:
b. decreases retained earnings but does not change total stockholders' equity.
Explanation:
<u>a. </u>increases common stock outstanding and increases total stockholders' equity.
<u>FALSE: </u>The Equity does not change as the Retained Earnings are used to issue the Shares, so no change in the total Stockholders Equity
<u>d. </u>increases retained earnings and increase total stockholders' equity.
<u>FALSE: </u>The retained earnings are debited thus, decrease when declaring dividends
<u>c.</u> may increase or decrease paid-in capital above par but do not change total
stockholders' equity.
<u>FALSE: </u>paid in will increase or not be used, as the shares will have a minimum value for the company of his face value.
<u>b. TRUE</u> RE decrease as from there comes to the funds. The total SE does not change it change his composition.
Answer:
$150,000
Explanation:
This machine is to be classified as an asset held for sale. The assets held for sake are carried on the Statement of Financial Statement at the amount lower of Fair Market Value and the Carrying Amount.
Answer:
Sweetpea have a gain of $1,000
Explanation:
When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.
So, the adjusted basis will be
= Cost of the basis - Depreciation
= $5,000 - $2,000
= $3.000
Therefore,
Gain or Loss = Selling Price - Adjusted basis
= $4,000 - $3,000
= $1,000
Hence, it is a gain of $1,000.
Answer:
$64.76
Explanation:
The current share price can be determined by calculating the present value of the dividend
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow from year 1 to 13 = 9.45
I = 10.7
PV = 64.76
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute