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RoseWind [281]
4 years ago
14

On January 1 2016, Paulus Company purchased 75% of Sweet Corporation for $500,000. Sweet’ stockholders’ equity on that date was

equal to $600,000 and Sweet had 60,000 shares issued and outstanding on that date. Sweet Corporation sold an additional 15,000 shares of previously unissued stock on December 31, 2016. Assuming that Paulus Company purchased the additional shares, what would be their current percentage ownership on December 31, 2016?
Business
1 answer:
babymother [125]4 years ago
7 0

Answer:100%

Explanation:

The total authorised share of sweet is 60,000 shares. It issued 75% to Paulus which represents 45,000 shares leaving a balance of 15,000 shares.

The issuance of the balance of 15,000 to Paula which represents 25% of the total shares invariably give Paulus a 100 holding in sweet.

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The evaluating alternatives part of the decision-making process!
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3 years ago
Match each of the global business practices with an example of its use.
Levart [38]

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3 0
3 years ago
The Blue Utilities Company paid Sue $2,000 for the right to lay an underground electric cable across her property anytime in the
Reil [10]

Answer:

B)

Explanation:

Sue is not required to recognize gross income from the receipt of the funds, but she must reduce her cost basis in the land by $2000.-

8 0
3 years ago
Suppose that the manager of a restaurant has two new employees, Rahul and Henriette, and is trying to decide which one to assign
romanna [79]

Answer:

a. Who should be assigned to chop vegetables?

  • Henriette

b. Who should be assigned to wash dishes?

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Explanation:

we need to determine the opportunity cost of each employee:

Rahul's opportunity cost of chopping one pound of vegetables = 100 / 20 = washing 5 dishes per hour.

Rahul's opportunity cost of washing 1 dish per hour = 20 / 100 = 0.2 pounds of chopped vegetables.

Henriette's opportunity cost of chopping one pound of vegetables = 120 / 30 = washing 4 dishes per hour.

Henriette's opportunity cost of washing 1 dish per hour = 30 / 120 = 0.25 pounds of chopped vegetables.

Rahul should wash dishes while Henriette should chop vegetables because their opportunity cost of performing these activities is lower.

4 0
3 years ago
Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assure
navik [9.2K]

Answer:

In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.

Explanation:

Under cost recovery method, the amount which is actually received was recorded in the books of the accounts. Rest will not be considered.

The Installment receivables should be computed by a formula which is shown below:

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Thus, In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.

6 0
3 years ago
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