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Serga [27]
3 years ago
14

A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subscribe to common stock on Jun

e 30 of the current year. Each right entitles the holder to purchase one share of stock for $55. One right is issued for every share of stock owned. Thomas owns 100 shares of stock purchased 10 years ago for $2,800. At the time of the distribution of the rights, the market value of the common stock is $83 per share and the market value of the rights is $11 per right. Thomas receives 100 rights. On September 30, he exercises 75 of the rights and sells the remaining 25 rights for $13 per right. If required, round your answers to two decimal places. If Nexsen does not allocate his original stock basis to the rights, his basis of the new stock is $__________ . The holding period of the new stock begins on the date . The sale of the rights produces capital gain of $________
Business
1 answer:
Black_prince [1.1K]3 years ago
3 0

Answer:

PURCHASE PRICE OF THE RIGHT STOCK (75 * $90) = $6750

LESS- SELL PRICE OF THE RIGHT (25 * $22) =($550)

TOTAL COST OF THE RIGHT STOCK = $6200

NO OF RIGHT STOCK PURCHASED = 75

PRICE PER STOCK = $82.67

SALE PRICE OF THE RIGHT (25 * $22) =$550

LESS- PURCHASE PRICE OF RIGHT = NIL

TOTAL CAPITAL GAIN ON SALE = $550

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fixed expenses ........... it makes sense          

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3 years ago
Ayayai Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend
maxonik [38]

Answer:

Explanation:

The journal entries are shown below:

On Declaration date

Retained Earnings A/c Dr $4,000,000         (400,000 shares × $10)

        To Common Stock Dividend Distributable A/c $4,000,000        

(Being dividend is declared)

On distribution date:

Common Stock Dividend Distributable A/c Dr $4,000,000    

           To Common Stock A/c $4,000,000    

(Being the dividend is distributed)

8 0
3 years ago
I have been working on a Elementary Spanish 1 assignment for about 30 minutes, and I am now stuck. Can you please help me with t
Leya [2.2K]

These are OK

1. ¿Cuántos estudiantes hablan español?

Veinte estudiantes hablan español.

2. ¿A qué hora es la clase de sociología?

La clase es a las cinco

4. ¿Qué cursos tomas?

Estoy tomando historía, español, y arte

Now these need correction:

3. ¿Trabajas ustedes mañana? <em>This is common, "ustedes" is plural "you" , singular "you" is "tu", and when the verb is conjugated there is no need of the personal pronoun, a correct version of this question would be  "¿Trabajas mañana?</em>

No, no trabajas mañana. Trabaja sábado. <em>"trabajas" is conjugated in second person, you should answer in first person "No, no trabajo mañana, trabajo el sabado"</em>

5. ¿Estudias?  <em>I dont know what  you mean by this, in english is: "study?" if you are asking "are you studying for you examns?" or something like that it would be "¿estas estudiando?"</em>

¿Estudias...?? <em>And the answer would be "Si,estoy estudiando mucho" - "Yes, I'm studying hard"</em>

<em>7. ¿</em>Hay? <em>The same as before this means "is there...?"  you might ask "is there a coffee shop in campus?" and in spanish "hay cafeterias en el campus?"</em>

¿Hay....???? <em>And the answer here is "yes, there are" => "si, hay"</em>

<em>8. ¿</em>Dónde está? <em>Where is...? is this question,  you might ask "where is the coffee shop?", "donde está la cafeteria?"</em>

¿Donde esta???? "<em>La cafeteria esta en la esquina" => "The coffee shop is the corner"</em>

4 0
3 years ago
The following transactions are July 2014 activities of Craig�s Bowling, Inc., which operates several bowling centers (for games
ololo11 [35]

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $15,000

         To Games revenue A/c   $15,000

(Being cash collected)

b. Cash A/c Dr $3,000

   Accounts receivable A/c Dr $5,000

                   To Sales revenue $8,000

(Being cash received for selling of equipment)

c. Cash A/c Dr $4,000

      To Account receivable  $4,000

(Being cash received for merchandise sold by the company)

d. Cash A/c Dr $2,500

       To Unearned revenue A/c $2,500

(Being deposit received for the upcoming fall season)

5 0
3 years ago
The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. The fixed costs a
SVEN [57.7K]

Answer:

Operating Income = $100,000

Explanation:

1 a. What is the current annual operating income?  

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.3 = 1,500,000

Contribution = 1,000,000 (margin = 1m/2.5m = 40%)

Less: Fixed Costs ....$900.000

Operating Income = $100,000

b. What is the present break even point in revenues?  

BEP = FC/Contribution Margin = 900,000/0.4 = $2,250,000

2. A $0.04 per unit increase in variable costs  

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.34 = 1,700,000

Contribution = 800,000

Less: Fixed Costs ....$900.000

Operating Income = ($100,000)

3. A 10% increase in fixed costs and a 10% increase in units sold  

Revenue - 5,500,000* $0.5 = 2,750,000

Less: Variable Costs - 5,500,000*$0.3 = 1,650,000

Contribution = 1,100,000

Less: Fixed Costs ....$990.000

Operating Income = $110,000

4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.  

Revenue - 7,000,000* $0.4 = 2,800,000

Less: Variable Costs - 7,000,000*$0.27 = 1,890,000

Contribution = 910,000

Less: Fixed Costs ....$720.000

Operating Income = $190,000

5.Compute the new breakeven point in units for each of the following changes:   A 10% increase in fixed costs  

BEP = FC/Contribution Margin = 810,000/0.4 = $2,025,000

6. A 10% increase in selling price and a $20,000 increase in fixed costs

Revised Contribution Margin = 0.55 - 0.3 = 0.25; 0.25/0.55 = 0.4545

BEP = FC/Contribution Margin = 1080,000/0.4545 = $2,376,238

8 0
3 years ago
Read 2 more answers
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