Answer:
Dr Retained earnings $9,000
Cr Dividends payable $9,000
Explanation:
The number of shares eligible for dividends is the issued common stock minus treasury stock, that is 15,000 shares(20,000-5,000),as a result ,dividends of $9000 (15,000*$0.6) were declared.
The appropriate entries on the declaration date is to debit retained earnings with $9,000 and credit dividends payable account with $9000
Upon payment, the dividends payable would be debited and cash account credited.
Answer:
Interest expense = $20,000
Explanation:
<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>
The annual installment is computed as follows:
Annual installment= Loan amount/annuity factor
Annual installment is already given as = 37,258 (already given)
Interest payment = interest rate × Loan balance at the beginning of the year
DATA
Interest rate = 8%
Loan balance at the beginning of the year = $250,000
Interest expense = 8%× 250,000 = $20000
Principal paid = Annual installment - Interest = 37,258-20,000 = 17,258 <em>(this is not required but to explain the concept)</em>
Interest expense = $20,000
Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
To get the answer, you need to calculate this:
19 donees (5 married children + 5 spouses + 9 grandchildren) ×$14,000 (annual exclusion for 2016) × 2 donors (Elijah and Anastasia) = 19(14000) (2)
=19(28000)
=532,000
Through this, you will get the answer of $532,000
Answer:
a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreasing demand
Explanation:
When there is recession the price of the factor goes down and with that, the insufficient demand for a certain good or services is eliminated. The reasoning is that the decrease in prices stimulates demand and adjust the market.
Keynes among other economist consider that unemployment increase during recessions because the nominal wages rate do not fall. As the union and worker do not want to see their wage decrease. Same is applied to prices which makes then inflexible in a downward direction.
While "supply creates its own demand" is "Says's Law" which is rejected in keynes main book "The general theory"
Hece option A is the only one which is true
