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lidiya [134]
3 years ago
10

A corporation purchases 20 000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the

effect on total stockholders' equity?A. Increase by $400,000.B. Increase by $700,000.C. Decrease by $400,000.D. Decrease by $700,000.
Business
1 answer:
vampirchik [111]3 years ago
5 0

Answer:

D. Decrease by $700,000.

Explanation:

The computation of the effect on the total stockholder equity is as follows

Given that

Number of shares is 20,000

Per share $35 recorded at a cost

Own shares at par is $20

As we know that if we purchased our own stock so it would be called as a treasury stock and the same is to be deducted from the shareholder equity as it is a contra equity account that reduce the equity balance

Now the effect would be

= 20,000 shares × $35

= $700,000

Hence, it is decreased by $700,000

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You would like to know the minimum level of sales that is needed for a project to be accepted based on its net present value.
Andrei [34K]

Answer:

C. financial break-even point.

Explanation:

Break even point in economics is the point in the business, wherein cost and revenue generated are equal and business make no profit, no loss. Similary Financial break even has a same concept, however, it is a point in business, wherein earning before EBIT is equal to the fixed financial cost of the company and these fixed costs should be earned by the company to run its business and meet its fixed financial obligation. The earning above the financial break-even point is a profit to the shareholder.

Point in financial break even, wherein earning per share is equal to zero.

8 0
2 years ago
Other things being equal, a ________ supply of workers tends to put ________ pressure on real wages.
Sav [38]

The answer is, larger; downward.

  • Other things being equal, a larger supply of workers tends to put  downward pressure on real wages.

<h3>How do wage increases affect the demand for and supply of labor?</h3>
  • The quantity of work required will alter in response to changes in pay or salary.
  • Employers will want to hire fewer workers if the pay rate rises.
  • There will be a reduction in the amount of labor requested and an upward shift in the demand curve.

<h3>What causes wage increase?</h3>
  • There are several reasons why employers may decide to raise salaries.
  • An increase in the minimum wage is the most frequent justification for wage increases.
  • The minimum wage can be raised by both the federal and state governments.
  • Companies that manufacture consumer items are also renowned for giving their employees small pay raises.

<h3>How does wage increase affect supply?</h3>
  • The aggregate supply curve shifts inward when the money wage rate increases, which results in a decrease in supply at all price levels.
  • The aggregate supply curve shifts outward as the money wage rate declines, increasing the quantity supplied at any price level.

Learn more about  real wages here:

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8 0
2 years ago
Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss w
Brums [2.3K]

Answer: Hello your question is incomplete attached below is the complete question

answer:

1) attached below

2) Net operating income ( loss )  = - $104 million

Explanation:

Pretax operating loss = - $137 million

Non deductible Losses ; $5 million fine paid in 2021 ,

estimated $12 million loss from contingency that will be tax deductible in 2022

Enacted tax rate = 25%

Taxable operating income = - $120 million

attached below is the solution

4 0
2 years ago
Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the ye
ozzi

Answer:

Actual overhead= $153,400

Explanation:

Giving the following information:

During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600.

At the end of the year:

Manufacturing overhead was overapplied by $15,900.

If the applied manufacturing overhead was $169,300.

Because the manufacturing overhead was overapplied, we need to subtract from the applied overhead to determine the actual overhead.

Actual overhead= applied overhead - overapplied overhead

Actual overhead= 169300 - 15900= $153,400

5 0
3 years ago
Martha, the chief designer of StyleSmartz, is considered a role model by her design team members for her role as an effective le
Lerok [7]

Answer:

engage in management openness by encouraging members to voice their opinion.

Explanation:

An important characteristic of management is approachability and openness of the manager to ideas of employees. This gives the manager an idea of the actual state of the workplace facilitating effective resolution of issues as they arise.

When employees know they can freely express themselves without being reprimanded, they better express themselves about challenges encountered.

Also opportunities and methods of doing things better is communicated to the manager

8 0
3 years ago
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