Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
Answer:
C) performance of the contract is commercially impracticable.
Explanation:
Contract law contemplates certain situations where performing the contract is either difficult or impossible and therefore the party is not liable for breaching the contract.
Commercial impracticability applies to contracts where the performance of at least one party is impracticable and cannot be accomplished.
In this case, Quinn cannot perform his duty since the price of scrap steel increased beyond any reasonable price contemplated in the contract. Since Quinn is not responsible for setting the price of scrap steel, he is not liable for breaching the contract.
Answer:
13,384.62 shares
Explanation:
Current number of shares = $435,000 / $13
Current number of shares = 33461.53846154
Current number of shares = 33,461.54 shares
Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.
So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.
Answer and Explanation:
No loss will be recognized in the year 20X3 and a provide a reduction in E&P of $292,500
Given:
Current and accumulated E&P = $585,000
Fair market value = $234,000
Profit on accumulation:
Profit on accumulation = Current and accumulated E&P - Fair market value Profit on accumulation = $585,000 - $234,000
Profit on accumulation = $351,000
Distribution is divided because accumulated profit in year 20X3 is higher then distribution.
