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Sloan [31]
3 years ago
7

On June 27, 2021, Cara Van Travel distributed to its common shareholders 510,000 outstanding common shares of its investment in

Constance Noring Pillows. The book value on Van's books of Noring's $1 par common stock was $3.10 per share. Immediately after the distribution, the market price of Noring's stock was $3.60 per share. In its income statement for the year ended June 30, 2023, what amount should Noring report as gain on disposal of the stock (ignore taxes)?
Business
1 answer:
Phoenix [80]3 years ago
6 0

Answer:

The correct answer is $255,000.

Explanation:

According to the scenario, the given data are as follows:

Total outstanding shares = 510,000

Shares value before = $3.10

Shares value after deal = $3.60

So, we can calculate the amount of gain on disposal by using following formula:

Gain amount on disposal = Total number of shares × Difference in share value

By putting the value, we get

= 510,000 × ( $3.60 - $3.10)

= 510,000 × $0.50

= $255,000

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1. A,B,C

A. adding plumbing to a new building

B. creating a piece of furniture

C. preparing food to serve to customers

2. B,C

B. using medical terminoligy

C. managing office personnel

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3 years ago
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Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash p
cricket20 [7]

Answer:

Explanation:

                          Monthly Cash budget for January - March

Particulars                 January     February         March

Opening  balance     30,000       30,000         69,294

Cash received          525,000     400,000       450,000

Total                          555,000     430,000       519,294

Cash payment          (475,000)     (350,000)    (525,000)

Interest (60000*1%)   (600)    10600*1%(106)         0

                                  79,400        79,894            (5,706)

Loan repayment        (49,400)      (10,600)          35,706

Minimum cash balance of 30,000 required.

(79,400-30,000)  

(60,000-49,400)                    

Cash balance            30,000          69,294           30,000

Loan repayment.

January

Opening balance  60,000

Repayment            (49,400)

balance                   10,600

February

Opening balance     10,600

repayment(balance)  (10,600)

March

35,706

7 0
3 years ago
What are the advantages and disadvantages of making small, frequent purchases from just a few suppliers?
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Answer: The small frequent purchases means purchasing small budget goods and services in a short duration.

Explanation:

Advantages of small frequent purchases: It reduces the inventory levels.

Disadvantages of small frequent purchases: It increases the inbound transportation costs.

Using fewer supplier means to fill up the delivery transportation to its capacity of loading so that goods can be delivered at low transportation cost.

6 0
3 years ago
"On January 1, 2012, Brown Company purchased a mine for $100,000. On this same date, it was estimated that the mine contained 1,
lapo4ka [179]

Options:

$1,000

$100,000

$30,000

$3,000

Answer:

The amount of depletion expense for 2012 would be =$30000.

Explanation:

Amount of depletion expense for 2012 = ($100000/1000 ton)*300 ton  

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5 0
3 years ago
After developing a computer locking system, Caffrey Computer Corp. worked out a licensing deal with Chicago Desktop (a potential
Vika [28.1K]

Answer:

<u>A Strategic Alliance</u>

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It represents a mutually beneficial agreement between two corporate firms under which, terms are less binding and stringent than a joint venture.

The purpose behind such an alliance could be, expansion, product line improvement or together gain a competitive advantage.

Such an alliance helps both businesses achieve a common goal driven by mutual assistance and pooling of resources.

In the given case, the tie up between Caffery computer corp. and Chicago desktop to sell computer locking systems alongside computers, would be termed a strategic alliance, since such an arrangement would benefit both, reduce competition for each with collective gain w.r.t market share.

3 0
3 years ago
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