Answer: $240,000
Explanation:
400,000÷20,000 = $20 per share (repurchase price)
160,000 ÷ 10,000 = $16 per share (sales price)
$400,000 - $160,000 = $240,000
The treasury stock account is created upon the repurchase of a company's own stock. The treasury stock account is debited for cost of repurchase and then credited.back when the stocks are resold. However, after repurchasing 20,000 stock for 400,000 and selling hlaf the repurchased stock (10,000) for $160,000, then the repurchase price is greater than the sales price. There will be no paid in capital, with the entire amount credited to treasury stock.
The question is incomplete. The complete question is :
Selling bonds. Rawlings needs to raise $41,800,000 for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of 2.2 %. The market yield is currently 7.7 % on twenty-year zero-coupon bonds. If Rawlings wants to issue a zero-coupon bond, how many bonds will it need to sell to raise the $41,800,000?? Assume that the bond is semiannual and issued at a par value of $ 1000. How many bonds will Rawlings need to sell to raise the $41,800,000?
Solution :
We know that a zero compound bond does not pay any coupon payments, so the bond price is present value for the cash inflow from a zero coupon bond.
The present value of a maturity value uses a YTM as a discount rate.
We will find the semi annual rates and the time periods as the semi annual bond is given.
The semi annual YTM is =
= 3.85 %
Number of the semi annual periods till maturity = 20 x 2
= 40
The bond price =
= $ 220.668308088
The investment bank will then sell the bonds at a price above but the charge will be2.2% commission on the above price.
The net proceeds to Rawlings
= $ 215.813605311
∴ The number of bonds required :
= 193,685.657
≈ 193,686 bonds
Answer:
The answer is D. The asset of the business must have increased $45,000
Explanation:
Accounting equation:
Equity = Asset - Liability
OR
Asset = Equity + Liability.
In general, total assets must always be equal to the addition of equity and Liability.
The total liability increased by $75,000 and the equity decreased by $30,000.
Asset = Equity + liability
Asset = - $30,000 + $75,000
Asset = $45,000 (+$45,000)
Answer: $177,900
Explanation:
Her Assets are;
Checking account, Savings account, Home, Furniture and appliances, Laptop, Car, Mutual fund and Retirement account
Total value therefore is;
= 900 + 1,400 + 98,000 + 12,000 + 3,600 + 13,000 + 6,000 + 43,000
= $177,900