I think it's one and four but not so sure?
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intrinsic value, because it is used to show the moral goodness in a person.
When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
Given that the treasury stock is purchased for an amount greater than its par.
We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.
Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.
Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
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<h2>Family money seems to be less important</h2>
Explanation:
Creativity is important because, creative persons are successful persons
Diligence: Careful work is always expected from Entrepreneur.
Hard work: Hard work is essential for every person and not only entrepreneur.
Family money: This is the least important is the family money. You definitely need money, but there are many ways to get money say you can apply for personal loan and other corporate loans to start business.
Answer:
On October 01, 2017
The amount actually borrowed that is $ 701,000 will be recorded as liability/note payable on october 01, 2017. The following accounting entry will be passed
Debit Cash Asset $ 701,000
Credit Note payable $ 701,000
Interest recognized from October 1 to December 31, 2017
The premium amount paid on redemption will be recorded as interest over the period of time. The interest amount is
Interest = 721,000 -701,000 = $ 20,000
So this above calculated expense will be recognized as an expense over loan period.