Greg n. mankiw principles of macroeconomics 5th:

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transac

larisa [96]

Answer:

The answer is D.

Explanation:

Value of cash received is :

10,000 shares x $75

=$750,000

And that's a debit as it is shown in the question because cash was received.

Now the credit side.

Value of preferred stock is $50

So we have:

$50 x 10,000 shares

=$500,000 preferred shares.

Paid-in Capital in Excess of Par ValuePreferred Stock is $25 ($75 -$50)

So the value will be $25 x $10,000

=$250,000

3 0

3 years ago

Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th

Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation Debit Credit

Cash $18,000

Treasury stock $14,000

Paid in Capital from Treasury STOCK $4,000

Calculation

CASH = Number of shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

6 0

3 years ago

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that

almond37 [142]

Answer:

$20

Explanation:

Calculation for the marginal cost of producing an additional unit of output

Using this formula

Marginal cost=Wage per week/Marginal product of labor

Let plug in the formula

Marginal cost= $700 per week/35 units per week

Marginal cost= $20

Therefore the marginal cost of producing an additional unit of output is $20

3 0

2 years ago

Alamo Inc. had $240 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $26 mill

Sloan [31]

Answer:

The total income tax expense was $138,000,000

Explanation:

Total income tax expense

Decrease in deferred tax assets $26,000,000

+Increase in deferred tax liabilities $52,000,000

+Income tax payable $60,000,000

Total income tax expense $138,000,000

Workings

Income tax payable = 25% * $240,000,000

Income tax payable = $60,000,000

8 0

3 years ago

Coronado Inc. has an investment in trading securities of $150000. This investment experienced an unrealized loss of $7300 during

ValentinkaMS [17]

Answer:

Total loss= $4,745

Explanation:

Giving the following information:

Coronado Inc. has an investment in trading securities of $150000. This investment experienced an unrealized loss of $7300 during the current year. Assuming a 35% tax rate.

Loss= 7,300

Tax savings= (7,300*0.35)= (2,555)

Total loss= $4,745

4 0

3 years ago