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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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An investment will pay $20,000 at the end of the first year, $30,000 at the end of the second year, and $50,000 at the end of th
kondaur [170]

Answer:

$80541.

Explanation:

Please find the detailed answer as follows:

The Present value is the present value of a future amount of money or stream of cash flows of a specified rate of return . Please refer to the present value formula .

Present Value = 20000/ (1+.10) ^1 + 30000/ (1+.10) ^2 + 50000/ (1+.10) ^3 = $80540.95 or $80541  .Therefore the correct answer is $80540.95 or $80541.

4 0
3 years ago
The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beg
maksim [4K]

Answer:

$ 168,000

Explanation:

Include both Mark-ups and Mark-Downs and Exclude beginning inventory

When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates

the Previous year Ending inventory :

Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail

For Current year Addition :

Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail

Current year addition in retail includes : Markup ,Markdown purchases

Kindly check the attached images below to see the step by step explanation to the question above.

5 0
3 years ago
5. Successive US administrations have accused the Chinese government of manipulating their currency (Yuan) to
k0ka [10]

A weaker Yuan against the US dollar makes Chinese exports cheaper, increases demand, and makes US exports to China more expensive, thereby reducing the demand for US exports.

<h3>What is international trade?</h3>

International trade is the global exchange of goods and services among countries of the world, involving the use of the foreign exchange.

The three types of international trade are:

  • Export Trade
  • Import Trade
  • Entrepot Trade.

Thus, by manipulating the Yuan, the Chinese government ensures that it has a more competitive advantage over the United States in international trade.

Learn more about Chinese Yuan Manipulation at brainly.com/question/27858412

#SPJ1

5 0
2 years ago
According to
defon
<span>C.K. Prahalad was a teacher at the University of Michigan and very influential business thinker.</span><span>
According to C.K. Prahalad, the first stage of globalization is </span>when companies produce goods in one country and export them to other countries.
The second stage is when global businesses establish subsidiaries to handle the exports from their home country and at the third stage global firms set up operations in other countries.
7 0
3 years ago
Jacinda quit her job as a blackjack dealer where she made​ $42,000 per year to start her own florist business. Her business expe
polet [3.4K]

Answer:

Opportunity costs = 42,000 + 14,000 + 21,000 + 9,000 = $86,000

Explanation:

Opportunity cost is the cost of doing the next alternative.

In this case the opportunity cost would be the profits she has forgone and the costs she incurred to run the florist shop. Personal expenses are not included as we assume apartment and bill costs would be payable regardless of any decision.

Opportunity Costs = Next alternative + Costs of being a florist

Opportunity costs = 42,000 + 14,000 + 21,000 + 9,000 = $86,000

If Jacinda were making profits, we would subtract them from the salary that she could have earned.

Hope that helps.

3 0
4 years ago
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