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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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Invest into 3D printing organs you will become a million trust me
3 0
2 years ago
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000A
dexar [7]

Answer:

The correct option is C,$ 1,399,000

Explanation:

The items on the credit column would be the sum of  accounts payable, capital stock, notes payable and retained earnings  minus the payment of accounts payable and notes payable

Accounts payable is $220,000

capital stock is $680,000

notes payable is $520,000

retained earnings is $140,000

payment in respect of accounts payable is $150,000

payment in respect of notes payable is $11,000

total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00  

6 0
3 years ago
The balance in retained earnings on December 31, 2017, was $1435000 and on December 31, 2018, it was $1160000. Net income for 20
Inessa [10]

Answer:

b. $556,000.

Explanation:

Retained Earning is an account where all the earnings of the company accumulate and dividend is also paid from this account because it represents the amount the earning associated with the stockholders of the company.

December 31, 2018 Balance of Retained Earning = December 31, 2017 Balance of Retained Earning + Income for the year - Dividend Paid / Declared during the year.

$1,164,000 = $1,440,000  + $1,000,000 - Dividend Paid / Declared during the year.

$1,164,000 = $2,440,000 - Dividend Paid / Declared during the year.

Dividend Paid / Declared during the year = $2,440,000 - $1,164,000

Dividend Paid / Declared during the year = $1,276,000

Stock Dividend Paid - $500,000 + $220,000 = $720,000

Cash Dividend Paid = $1,276,000 - $720,000 = $556,000

6 0
3 years ago
Swifty Corporation took a physical inventory on December 31 and determined that goods costing $215,000 were on hand. Not include
balu736 [363]

Answer:

$262,000

Explanation:

Ending inventory = Goods on Hand + Cost Goods purchased from Marigold Corp + Cost of goods sold to Marigold Corp.

Ending inventory = $215,000 + $27,000 + $20,000

Ending inventory = $262,000

So, the amount that should Swifty report as its December 31 inventory is $262,000.

7 0
3 years ago
What is the difference between a capital gains tax and an income tax?
Luda [366]

Answer:

C. One is assessed on the profit made from selling an asset; the

other is assessed on earnings from work or investments.

Explanation:

The capital gains tax occurs only if as a result of the sale of an asset there is a profit that is exceptional and differ from the primarily economic activity of the person that made the sell.

4 0
3 years ago
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