Answer:
B. Decrease in total equity
Explanation:
Treasury stock is the contra equity account and it will decrease only total equity value when it is purchased.
Following is the Journal entry on Purchase of Treasury stock
Dr. Cr.
Treasury Stock xxx
Cash xxx
So the treasury stock account will be deduct from total equity while preparing equity section of balance sheet as it is a contra equity account.
Answer:
c. tenants by the entirety.
Explanation:
-Community property owners means that a property owned by a married couple is divided equally.
-Joint tenants is an agreement in which two people own a property with the same rights and obligations.
-Tenants by the entirety is an arrangement in which a married couple own a property and the husband or the wife can't sell it without the consent of the other.
-Tenants in common is an agreement in which two or more people own a property and they can have different percentages.
According to this, Kelly and Lon own the lodge as tenants by the entirety.
Answer:
D. Tender offer
Explanation:
A. Rights offer
B. Secondary issue
C. Targeted repurchase
D. Tender offer
E. Private issue
We are informed about Joseph Turner and Sons who has 125,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurchase 25,000 of its shares. In this case the type of offer is the firm making is tender offer. Tender offer can be regarded as a kind of public takeover bid to all shareholders, so that they can sell out their shares at a specific price during a particular time.
It is usually made public, and this time the investors do give out higher price per share compare to the stock price of the company, which give room to shareholders in selling their own share.
Answer:
$975
Explanation:
Use the following formula to calculate the Corporation's Tax basis in the property received in exchange
Corporation's Tax basis = Tax basis of Property transferred + Gain recognized
Where
Tax basis of Property transferred = $750
Gain recognized = 975 - $750 = $225
Placing values in the formula
Corporation's Tax basis = $750 + $225
Corporation's Tax basis = $975
Answer:
$178
$259
Explanation:
The calculation of the variable costing concept and (b) the absorption costing concept is shown below:-
Cost of Goods Manufactured per unit = $516,200 ÷ 2,900
= $178
Fixed Manufacturing Overhead Per Unit = $234,900 ÷ 2,900
= $81
Variable Product cost Per Unit = Cost of Goods Manufactured per Unit
= $178
Absorption product cost per unit = $178 + $81
= $259