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VashaNatasha [74]
3 years ago
7

Li Company declared a property dividend of 20,000 shares of its investment in $1 par P Company common stock. The P stock was pur

chased for $5 per share. The fair value of the P stock was $10 per share on the declaration date of the property dividend and $12 per share on the distribution date. What is the amount of the dividend?
Business
1 answer:
kolbaska11 [484]3 years ago
7 0

Answer:

$200,000

Explanation:

DIVIDEND can be defined as the amount of cash which is been paid regularly by a company to its shareholders out of its profits or surplus.

Property dividend of 20,000 shares ×

Fair value of the P stock at $10 per share on the declaration date of the property dividend.

Therefore:

20,000 x $10 = $200,000

The amount of DIVIDEND is $200,000

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ames Corporation is planning to issue bonds with a face value of $501,500 and a coupon rate of 6 percent. The bonds mature in 10
Yuliya22 [10]

Answer:

The independent cases not given in the question are:

a. Case A: Market interest rate (annual): 4 percent.  

b. Case B: Market interest rate (annual): 6 percent.  

c. Case C: Market interest rate (annual): 8.5 percent.

At 4% issue price is  $583,502.44

At 6% issue price is $501,500.00

At 8% issue price is $433,344.51

Explanation:

The price of the bond can be computed using the pv value formula in excel.

=pv(rate,nper,pmt,fv)

rate is the market interest given in the three cases divided by since the bond is a semi-annual interest paying bond. for example 4%/2=2%

nper is the time to maturity multiplied by 2  i.e 10*2=20

pmt is the coupon  interest receivable by investor semi-annually which is 6%/2*$501,500=$15045

fv is the face value at $501,500

at 4%

=pv(2%,20,15045,501500)

=$583,502.44

at 6%

=pv(3%,20,15045,501500)

=$501,500.00

At 8%

=pv(4%,20,15045,501500)

=$433,344.51

8 0
3 years ago
Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:
ira [324]

Answer:

Can you simplify your question. We ask of you to simplify the question so its easier to com up with a answer

Explanation:

SIMPLIFY THE QUESTION

8 0
3 years ago
Why is one dollar now worth more than one dollar in the future?
Galina-37 [17]
Because then there will be a limited amount of supplies and resources on Earth, so the value will be rare and expensive.
4 0
3 years ago
A long term investment usually means an investment period of one to three months?
GarryVolchara [31]

Answer:

False

Explanation:

7 0
3 years ago
Read 2 more answers
Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
Anuta_ua [19.1K]

Answer:

Consider the following calculations

Explanation:

Answer:(a) Carrying value of asset: $10,000,000 - $2,500,000 = $7,500,000.

($10,000,000 ÷ 8) x 2 = $2,500,000

Future cash flows $6,300,000

Carrying value $7,500,000

Impairment entry:

Loss on Impairment A/C Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

(7,500,000 - 5,600,000 = 1,900,000)

(b) Depreciation Expense A/C Dr. $ 1,400,000

           To Accumulated Depreciation A/C $ 1,400,000

($5600000/4=$1400000)

(c ) No depreciation is recorded on impaired assets to be disposed of.

Recovery of impairment losses are recorded.

Loss on Impairment A/c Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

12/31/2015 Accumulated Depreciation A/C Dr. $ 300,000

                                          To Recovery of Impairment Loss A/C $ 300,000

5 0
3 years ago
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