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lions [1.4K]
3 years ago
13

Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding sha

res of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition transaction
Business
1 answer:
-Dominant- [34]3 years ago
3 0

Answer: $593000; $250000

Explanation:

The consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition transaction will be calculated thus:

Additional paid in capital will be:

= $60000 + ([46-5] × $13000)

= $60000 + (41 × $13000)

= $60000 + $533000

=$593000

Retained earnings will the value of the parent's retained earnings only which will be $250000

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George deposited $2,000 in his bank account, which offers 5 percent compound interest calculated annually. what would be the pri
Ymorist [56]

Answer:

$2,205

Explanation:

The amount available after two years can be calculated using the formula

A= P x ( 1 + r) ^n

where A = amount

P= principal: $2000

r = interest rate : 5%, or 0.05

n = number of compound periods: 2

A= $2000 x ( 1 + 0.05)^2

A= $2000 x1.1025

A= $2,205

Principal amount after two years = $2,205

3 0
3 years ago
Read 2 more answers
The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inver
Elan Coil [88]

Answer:

takes on the shape of an inverted U so related diversification has the best performance.

Explanation:

A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.

The portfolio variance is given by the equation;

Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}

Where;

w_{n} = the weight of the nth security.

d^{2}_{n} = the variance of the nth security.

C_{OV_{1, 2}} = the covariance of the two security.

The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.

4 0
3 years ago
Is it possible for a firm to become too big to be competitive and earn profit?
Usimov [2.4K]
The answer is yes.
 Its possible for a firm to become too big to be competitive and earn profit. They can be so large and successful that they no longer compete with small businesses anymore and might inhibit the ability to continue earn their profit. 

6 0
4 years ago
A good description of source inspection is inspecting: a. materials upon delivery by the supplier. b. the goods at the productio
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Answer: e) One's own work.

Explanation:

Source inspection is the examining or checking that is used for inspecting quality of goods and quality control process. This process is carried through source inspector for surveillance of product or goods own working and function.

Other options are incorrect because source inspection does not investigates design specification, delivered goods, supplier plant products and products at production department.Thus, the correct option is option(e).

4 0
3 years ago
Q 8.8: What is the effect of the collection of an account that had been previously written off under the allowance method of acc
lisov135 [29]

Answer:

The answer is: A : It will increase income in the period it is collected.

Explanation:

Under the allowance method, the company estimates bad debt expenses. So any bad debt written off will affect only the balance sheet by:

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  • Cr Accounts receivable

If unexpectedly your client decides to pay their debt, this should be recorded as:

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3 years ago
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