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FinnZ [79.3K]
3 years ago
11

When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction i

s the
a. market value of the services received.
b. par value of the shares issued.
c. market value of the shares issued.
d. Any of these provides an appropriate basis for recording the transaction.
Business
1 answer:
Jet001 [13]3 years ago
5 0

Answer:

B.) Par value of the share issued

Explanation:

This transaction just have to follow the rules of issuing stocks for non-cash assets. The rule is to record on the basis of MARKET VALUE of the services received or the MARKET VALUE of the shares issued whichever can be objectively determined.

The <u><em>least appropriate basis</em></u> would be the Par Value of the shares issued since the par value are usually significantly lower than its market value.

Par value are determined from the creation of the company and the company grows and increases its value.

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Answer:

To avoid possible agency problems, <em>profit sharing</em> should be included in your offer

Explanation:

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3 years ago
Which of the following statements is true about the niche strategy?
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3 years ago
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8 0
3 years ago
Read 2 more answers
You purchased GARP stock one year ago at a price of $67.67 per share. Today, you sold your stock and earned a total return of 18
Svetlanka [38]

Answer:

14.48%

Explanation:

The capital gains yield on the investment is increase in share price divided by the initial price paid to acquire the share a year ago.

The total return formula can be used to figure the price the stock was when sold as below:

total return =P1-Po+D/Po

P1 is the current price which is unknown

Po is the initial price of $67.67

total return is 18.79%

D is the dividend of $2.92

0.1879=P1-67.67+2.92/67.67

0.1879*67.67=P1-64.75

12.72=P1-64.75

P1=12.72+64.75

P1=77.47

Capital gains yield=(77.47 -67.67)/67.67=14.48%

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