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Nikolay [14]
3 years ago
12

Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no broker

age fees and shares can be purchased at a 15% discount. During 2021, employees purchased 12 million shares; during this same period, the shares had a market price of $15 per share at the end of the year. Martin's 2021 pretax earnings will be reduced by:
Business
1 answer:
Alexandra [31]3 years ago
8 0

Answer:

$27 million

Explanation:

Calculation to determine what Martin's 2021 pretax earnings will be reduced by:

Cash $153 million

($15 x 12 million x 85%)

Compensation expense $27 million

($15 x 12 million x 15%)

Common stock $180 million

($15 x 12 million)

Therefore Martin's 2021 pretax earnings will be reduced by:$27 million

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The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin'
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Answer:

Contribution margin per unit= $7.5

Explanation:

Giving the following information:

Each radio sells for $23.75 and the variable cost per unit is $16.25.

The contribution margin is the difference between the selling price and the unitary variable cost:

Contribution margin= selling price - unitary variable cost

Contribution margin= 23.75 - 16.25

Contribution margin= $7.5

6 0
3 years ago
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. when will the pol
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If the insurer takes the policy as applied for the coverage will take effect when the conditions of the receipt are met and from the date of the application or medical exam. The two types of conditional receipts are insurability and approval. The insurability receipt provides interim coverage as the applicant is insurable while the approval receipt will not begin until the insurer will approve the claim. However, conditional receipts will provide the coverage if the applicant is insurable as applied for and coverage will not be delivered until the applicant accepts the coverage if the insurer concerns a counter-offer because the applicant is substandard risk. 
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3 years ago
The compensation associated with restricted stock units (RSUs) under a stock award plan is the number of shares represented by t
tatiyna

Answer:

The market price of an unrestricted share of the same stock.

Explanation:

Restricted stock units (RSU) are defined as a type of compensation in shares that an employer will give to an employee.

Usually certain conditions or performance should be met before the employee gets this benefit. For example staying with the company for a number of years.

A vesting plan of distribution schedule is used to allocate the shares.

The value of the compensation will be the number of shares given by the RSU multiplied by the market value of unrestricted share of the same stock.

For example if an employee has RSU of 1,000 shares, and share value is $10

Value of RSU compensation = 1,000 * 10 = $10,000

5 0
3 years ago
On January 1, 2016, Wasson Company purchased a delivery vehicle costing $50,710. The vehicle has an estimated 8-year life and a
oee [108]

Answer:

Book value= $33,008

Explanation:

Giving the following information:

On January 1, 2016:

Purchase cost= $50,710.

Residual value= $4,700

Wasson uses the units-of-production depreciation method.

The vehicle will be driven 107,000 miles.

2016= 10,700 miles

2017= 18,700

First, we need to calculate the depreciation of 2016 and 2017, using the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of miles]*miles

2016= [(50,710 - 4,700)/107,000]*10,700= $4,601

207= 0.43*18,700= $8,401

Book value= depreciable value - accumulated depreciation

Book value= 46,010 - (4,601 + 8,401)= $33,008

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4 years ago
Martha has just started a small retail store in the city. There are popular and older retailers in the same locality. In the fir
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B: Her competitors enjoy good brand loyalty

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