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makkiz [27]
3 years ago
11

Henry Jones contributed equipment, inventory, and $53,300 cash to a partnership. The equipment had a book value of $25,500 and m

arket value of $32,900. The inventory had a book value of $51,900 but only had a market value of $16,000 due to obsolescence. The partnership also assumed a $14,500 note payable owed by Henry that was originally used to purchase the equipment.
What amount should Henry's capital account be recorded?
a. $69,000
b. $104,000
c. $84,000
d. $89,000
Business
1 answer:
gogolik [260]3 years ago
6 0

Answer:

$94,000

Explanation:

Henry Jones contributed a cash of $53,300 to the partnership

The equipment had a book value of $25,500 and a market value of $32,900

The inventory had a book value of $51,900 and a market value of $16,000

The partnership assumed a note payable of $14,500 that was owed by Henry

Therefore, the amount that should be recorded in Henry's capital can be calculated as follows

= $53,300+$39,200+$16,000-$14,500

= $108,500-$14,500

= $94,000

Hence $94,000 should be recorded in Henry's capital account

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Nemesis, Inc., has 215,000 shares of stock outstanding. Each share is worth $81, so the company's market value of equity is $17,
Ksivusya [100]

Answer:

$81, $75, and $69

a. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $81 =        <u>$3888000</u>

                                                                                     <u>$21,303,000</u>

Price after issue of new shares = 21,303,000 / (215000 + 48000)

= 21,303,000 / 263,000

= $81

Conclusion: No changes ($0 per share

b. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $75 =        <u>$3600000</u>

                                                                                     <u>$21015000</u>

Price after issue of new shares = 21015000 / (215000 + 48000)

= 21,015,000  / 263,000

= $79.90

Conclusion: There is a decrease in amount (81 - 79.90) = $1.10 per share

c. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $69 =        <u>$3312000</u>

                                                                                     <u>$20,727,000</u>

Price after issue of new shares = 20,727,000 / (215000 + 48000)

= 20,727,000 / 263,000

= $78.81

Conclusion: There is a decrease in amount (81 - 78.81) = $2.19 Per share

4 0
4 years ago
Michael Jordan purchases (long) 10 shares of XYZ stock for 23.00 per share. Six months from now he will sell all 10 shares. The
melamori03 [73]

Answer:

a) Breakeven price = Purchase price + Interest amount that would have been earned on the invested amount

Breakeven price = 23 + [23*e^(0.05*1/2) - 23]

Breakeven price = 23 + 0.5822477721

Breakeven price = $23.5822477721

b) Profit = Selling price - Breakeven price

Profit = $23.80 - $23.5822477721

Profit = $0.2177522279 per share

3 0
3 years ago
Yummy Bakery just paid an annual dividend of $3.40 a share and is expected to increase that amount by 2.2 percent per year. If y
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Answer:

$28.18

Explanation:

Use dividend discount model to answer this question.

Current dividend ; D0 = 3.40

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D1 = D0(1+g)

D1 = 3.40(1.022)

D1 = 3.4748

Since you are buying the stock next year, calculate dividend at year 2 which you would use in the formula to find next year's price (P1) ;

D2 = D1(1+g)

D2 = 3.4748 (1.022)

D2 = 3.5512

Next year's price; P1 = D2 / (r-g)

P1 = 3.5512 / (0.148 - 0.022)

P1 = 28.1841

Therefore, you will pay $28.18

8 0
3 years ago
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mamaluj [8]

Answer:

B

Explanation:

8 0
4 years ago
Tangible resources includea. technological assets such as patents, copyrights, and innovation technologies. b. relationships suc
KATRIN_1 [288]

Answer:

The correct answer is letter "A": technological assets such as patents, copyrights, and innovation technologies.

Explanation:

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<em>Thus, patents, copyrights, and innovation technology can be considered tangible assets.</em>

5 0
3 years ago
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