Under a _____ exchange rate regime, a country will attach the value of its currency to that of a major currency.

Ticasso Co. issued 5,000 shares of its $1 par common stock, valued at $100,000, to acquire shares of Eurat Company in an all-sto

k0ka [10]

Answer:

D) a reduction to additional paid-in capital.

Explanation:

The investment banker fee is taking from the 100,000 dollars before purchasing Eurat Company shares thus, we purchase shares for:

proceeds from sales 100,000 - banker fees 35,000 = 65,000 net proceeds to purchase Eurat Company

the face value of the stock is 5,00 0shares x $1 = 5,000

additional paid-in $65,000 - $5,000 = $60,000

<u><em>The journal entry will be:</em></u>

Eurat company investment 65,000

common stock 5,000

additional paid-in 60,000

A lower fee would increase the available for investment and additional paid-in as common stock cannot increase higher than the face value

this makes option D correct.

5 0

3 years ago

Suppose that the Anytown city government asks private citizens to donate money to support the town's annual holiday lighting dis

Paha777 [63]

Answer:

O resources are currently underallocated to the provision of holiday lighting in Anytown.

Explanation:

Underallocation occurs when there is a failure to meet e set goals or objectives because insufficient resources were assigned to the project. On the other hand overallocation means excess resources are available to carry out a task.

Anytown city government is asking private citizens to make donations towards the annual lighting display. This implies there was underallocation of resources to the lighting display. If there was sufficient funds the private citizens will not be asked to make donations.

8 0

4 years ago

Edward and Tony are fraternity brothers. Edward has a dinner party to celebrate getting a new job. Tony helps Edward out with th

stealth61 [152]

Answer:

Edward's promise is not enforceable. Tony had already performed the act. He did not perform based on Edward's promise. He performed because of their fraternal brotherhood.

Explanation:

This situation looks like a unilateral contract whereby Edward makes a promise to Tony to pay him $100. However, we observe that Tony did not perform his actions in consideration of this reward. He performed because they were fraternity brothers. Therefore, Tony cannot enforce Edward's promise in any court. It is only left for Edward to fulfill his promise as a gentleman, not because he is legally obliged to.

8 0

3 years ago

Assume the appropriate discount rate for the following cash flows is 4.78 percent per

lana66690 [7]

Answer:

$9,589.75

Explanation:

The computation of the present value of the cash flows should be shown in the excel spreadsheet. Kindly find the two attachment out of which one attachment contains the final values, the other attachment contains the formula sheet

After applying the formulas,

The present value of the cash flows is $9,589.75

Hence, the same is to be considered

8 0

3 years ago

Labor Input Physical output 10 500 11 600 12 690 13 760 14 800 Refer to the above table, answer the following questions: A. If t

Mama L [17]

Answer:

Explanation:

Labor Input Physical output

10 500

11 600

12 690

13 760

14 800

marginal output of 11 th labor = 600 - 500 = 100

price of each product = 7

marginal revenue product of 11 th labor 7 x 100 = 700

B )

price of each of the goods sold = 10

marginal factor cost of labour = 700

minimum no of goods to be sold to cover the labour cost

= 700 / 10 = 70

no of goods added due to addition of 11 the labour = 100

no of goods added due to addition of 12 the labour = 90

no of goods added due to addition of 13 the labour = 70

so no of units of labor upto which the firm will continue to hire

= 13 .

7 0

3 years ago