Issuing 25,000 shares of $5 par value common stock for $20 per share.
Cash (25,000 x 20) 500,000
Common stock (25,000 x 5) 125,000
Additional Paid-In Capital (25,000 x 15) 375,000
The net loss will only be reflected as a deduction from retained earnings. Retained earnings is where the net income or net loss of the company will be under in the year-end balance sheet. It is the balance of all income and loss the company has since its inception.
The complete question is as follows:
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,330,000. Harding paid $315,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $333,000; Building, $990,000 and Equipment, $657,000. (Round your intermediate percentages to the nearest whole number: i.e 0.054231 = 5%. Do not round any other intermediate calculations.)Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,040,000 units over its 5-year useful life and has salvage value of $17,000. Harding produced 269,000 units with the equipment by the end of the first year of purchase.Which amount below is
closest to the amount Harding will record for depreciation expense for the equipment in the first year?
A. $169,936
B. $165,538.462
C. $109,126
D. $88,460
Answer: B. $165,538.462
Explanation
Formula: Depreciation expense = step a
(cost of asset - salvage value)/estimated total units produced
step b = (step a) x actual units produced
step a = (65-17000)/1040000
= step a x 269000 = $B. $165,538.462
If the interest rate on a savings account is 0.01 % , the amount of money that you need to keep in 1 year to cover a single $ 9.99 below minimum balance fee is : $ 100,000
0.01 % x $ 100,000 = $ 10
hope this helps
Answer:
P5
Explanation:
The value of the stock today is the present value of all the expected cash-flows that are likely to accrue to the investor who buys the share today. If an investor buys the share today, he is likely to receive D1, D2, D3, D4, D5 and in addition, using the going concern concept, the investor is also expected to receive all the dividends from D6 till infinity. The present value of the dividends D5 till infinity is equal to P5.
Imagine an investor who wants to buy the share at the end of year 5. He would value the share at that point by calculating the present value of all his expected cashflows, which would be the present value of D6, D7, D8 etc till infinity. Given a constant growth grate, the Gordon Growth Constant model can be used to find P5 as follows:
where D6 = D5(1+g)
therefore
The most difficult would be drawing a picture. Not sure how you would do that with a keyboard and text.
