1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
On Jordan's 20th birthday he decides to invest 10,000 that he has saved. He will not be adding any money to the initial investme
levacccp [35]

Answer:

452592.56

Explanation:

10000(1.1)^40=452592.555682

7 0
3 years ago
Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to prov
irina [24]

B.

Customers will have a variety of flavors to choose from

3 0
3 years ago
The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua
kicyunya [14]

Answer:

$1.07

Explanation:

In this question ,we use the formula which is shown below:

A = P × (1 + r ÷ 100)^n

where,

P = Present value $0.90

A = Future value

rate =3%

number of years = 6

Now put these values to the above formula

So, the value would be equal to

= $0.90 × (1 + 3%)^6

= $0.90 × 1.03^6

= $0.90 + 1.194052

= $1.07

We considered all the items so that the correct dividend can come

7 0
3 years ago
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonu
marishachu [46]

Answer:

$42,853

Explanation:

The computation of the allowable MACRS depreciation on Convers’s property in the current year is shown below:

<u>Assets      Place in service    Quarter   Original Basis  Rate Depreciation</u>

Machinery

(7 years)     Oct 25                   4th           $70,000         14.29%  $10,003

Computer

Equipment

(5 years)    Feb 03                   1st            $10,000         20%       $2,000

Used delivery

truck

(5 years)     Mar 17                   1st            $23,000        20%       $4,600

Furniture

(7 years)     Apr 22                  2nd         $150,000       14.29%    $21,435

Qualified

improvement

(39 years)    May 12                 2nd         $300,000     1.605%     $4,815

Total                                                        $553,000                       $42,853

Refer to the MACRS depreciation table

and we used the half year convention

5 0
3 years ago
An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise. Holding e
Tanzania [10]

Answer:

4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.

Explanation:

Substitute goods are goods that can be used in place of each other.

If the price of electric automobiles rises, the automobile becomes more expensive for consumers. Consumers would reduce the quantity demanded of the electric automobile and shift its demand to gas powered automobiles.

As a result, the demand for gas automobiles increases and the equilibrium price would increase too.

I hope my answer helps you

8 0
3 years ago
Other questions:
  • Amanda wants to start a business to sell handmade jewelry. She is very competent at making the jewelry and teaching others to ma
    7·2 answers
  • Includes stocks, bonds, and mutual funds
    9·1 answer
  • Which of the following statements is true regarding a cross-functional team?A) A cross-functional team is made up of employees f
    13·1 answer
  • How many of the following items are found on the balance sheet, rather than the income statement?
    11·1 answer
  • Which word doesn't belong: departments, organizations, work group, team, or task force?
    10·1 answer
  • ​Tom's Taxidermy has a monthly target operating income of $29,000. Variable expenses are 65​% of sales and monthly fixed expense
    15·1 answer
  • Which of the following is a cost of not carrying enough inventory?
    12·1 answer
  • Yuri owns just one ship, he calls it Previt. The ship is worth $25 million dollars. If the ship sinks, Yuri loses $25 million. T
    15·1 answer
  • Hundred points.....what are three writing guidelines to follow when writing a resume?
    14·2 answers
  • What results when work seeps into non-work time?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!