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Zanzabum
3 years ago
9

When bonds are converted into common stock____.

Business
1 answer:
nexus9112 [7]3 years ago
4 0

Answer:

When bonds are converted into common stock____.

a. the market price of the stock and the bonds is ignored when recording the conversion.

Explanation:

This is because the conversion price, which is the price at which the convertible bond is converted into the common stock of the entity, is usually set initially when the conversion ratio is first decided on.  Therefore, the market prices of the stock and the bonds are not taken into account when the conversion recording is being done.

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Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,
dedylja [7]

Answer:

= $210,000

Explanation:

The question is to determine the income realized by Mr. James in 2019

The income is calculated as follows:

First, the basic information for calculation:

The Purchase price for the vacation house = $1,000,000

Spent Capital additions = $10,000

2019 worth of the house = $1,200,000

Secondly, based on the extracted figures, the income is calculated  as follows

Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)

= $1,200,000 - ($1,000,000 - $10,000)

= $1,200,000 - $990,000

= $210,000

4 0
3 years ago
Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large qua
DedPeter [7]

Answer: continuous production process

               

Explanation: In simple words, it refers to a production process in which the organisation has to keep doing the production due to the potential loss of of degradation of the raw materials or any other such factors.

In the given case, the company is able to produce efficiently only if they produce in large quantities.

Hence they should indulge in continuous production process.

7 0
3 years ago
Highway 55 Studios has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 1 comma 980 comma 000 Se
faust18 [17]

Answer:

Contribution per unit = Selling price - Unit variable cost

                                     = $70 - $10 = $60

Break-even sales in units = <u>Fixed cost</u>

                                             Contribution per unit

                                         = <u>$1,980,000</u>

                                                   $60

                                        = 33,000 units

If fixed cost reduced by $49,500, new fixed cost will be $1.930,500

33,000     = <u>$1,930,500</u>

                      $70 - VC

33,000(70 - VC) = $1,930,500

2,310,000 - 33,000VC  = $1,930,500

2,310,000 - $1,930,500 = 33,000VC                                          

379,500  = 33,000VC

<u>379,500</u>  = VC

33,000

VC = $11.50

Increase in variable expenses per unit

= $11.50 - $10 = $1.50

Explanation:

In this case, we need to determine the break-even point in units, which is fixed cost divided by variable expenses per unit. If total fixed expenses reduced by $49,500, the new total fixed expenses will be $1,930,500. Then, we will equate the break-even point in units to the new fixed cost divided by contribution per unit, which is selling price minus variable expenses per unit. Since break-even point in units, new fixed cost and selling price were known with the exception of variable cost, variable cost becomes the subject of the formula. The old variable expenses will be deducted from the new variable expenses so as to obtain increase in variable expenses per unit.

7 0
3 years ago
What is the difference between birthrate and death rate
Schach [20]
Birthrate is the number of births while deaerate is the number of deaths
4 0
3 years ago
Why should everyone in a market have adequate information about market conditions?
sergeinik [125]
Because if they don't then they won't know how to price things and how to play the marketing game with other marketers, even if your not in the marketing business you should know this because if you do go to market something you will know if people are trying to cheat you.

Hope this helps have a nice night
7 0
3 years ago
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