$10,000 increase in Treasury Stock is the effect of this transaction.
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What is cost method?</h3>
The cost method exists as a method of accounting. It is utilized for recording precise investments in a company's financial statements. This particular method lives used when an investor has little or no effect over the investment that they own.
The cost method of accounting is used for recording particular investments in a company's financial statements. This method is used when the investor exercises little or no influence over the acquisition that it owns, which exists typically represented as owning less than 20% of the company.
Treasury stock stands also known referred to as treasury shares and it happens when stock stands bought by the issuing company back from the stockholders.
This results in a reduction in the whole number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will get about a $10,000 gain in the treasury stock.
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Answer:
Option D is correct one.
Company X has a lower coefficient of variation than Company Y.
Explanation:
This is because company X has a lower standard deviation of returns than Company Y. Coefficient of variation = standard deviation/mean*100. Also mean of X will be higher as its expected return is higher than Y. So, the numerator (standard deviation) is lower and denominator (mean) is higher in case of X. This will lower its coefficient of variation than Company Y.
Answer:
ltem of important must be shown separately
what is that GAAP
Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
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