1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaVladis [17]
2 years ago
9

On April 1, 2021, Austere Corporation issued $320,000 of 15% bonds at 106. Each $1,000 bond was sold with 40 detachable stock wa

rrants, each permitting the investor to purchase one share of common stock for $19. On that date, the market value of the common stock was $16 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities
Business
1 answer:
drek231 [11]2 years ago
6 0

Answer:

$300,800

Explanation:

First Calculate  the proceeds from the issuance of the bond

Proceeds from bonds = Face value x Price rate = $320,000 x 106% = $339,200

Now calculate the fair value of the warrant issued

Fair value of warrant = Numbers of shares x Stock per bond x Market value of each Warrant = ( $320,000 / $1,000 ) x 40 x $3 = 320 x 40 x $3 = $38,400

Liability Portion = Procedds from bonds - Fair value of waarants = $339,200 - $38,400 = $300,800

You might be interested in
A company's board of directors votes to declare a cash dividend of $1.00 per share of common stock. The company has 20,000 share
matrenka [14]

Answer:

$14,500

Explanation:

From the above, the below details are given;

Authorized share capital , which represent maximum number of shares that a company is allowed to issue.

Issued shares, which is the number of shares issued by a company including shares purchased and backed by a company(treasury stock).

There is also outstanding shares which is treasury stock less issued shares.

We do also know that treasury stock does not have any right of dividend because the shares are held by the company hence cannot pay dividend to itself.

Therefore, the total amount of the cash dividend is = 14,500 × $1.00

= $14,500

7 0
3 years ago
New England Co. had net cash provided by operating activities of $351 ,000; net cash used by investingactivities of $420,000; an
Ira Lisetskai [31]

Answer:

d. $248,000

Explanation:

beginning cash balance            27,000

operating activities 351,000

investing activities (420,000)

financing                 250,000

cash generate during the year 181,000

ending cash balance                208,000

<u>Note:</u>

The information of the sale of land is contained with the investment activities.

The proceeds from sales are in the operating activities.

<u>We just need to calculate using the total for each activity.</u>

7 0
3 years ago
How to solve marginal product<br>​
scoundrel [369]

Explanation:

The marginal product formula is the change in quantity (Q) of items produced divided by the change in one unit of labor (L) added (change in Q divided by change in L). The denominator in this equation is always one because the formula is based on each one unit of increase in labor.

hope this helps

8 0
3 years ago
Read 2 more answers
Abbot Inc. is considering the following investment opportunities. Required Compute the future value under each of the investment
Over [174]

Answer:

$ 67,196

$132482

$88,727

$131,761

Explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

m =number of compounding

$50,000 x ( 1 + 0.06/2)^10 = $67,196

$60,000 x ( 1 + 0.08/4)^40 = $132,482

$40,000 x (1 + 0.1/12)^96 = $88,727

$80,000 x ( 1 + 0.05 /12) ^120 = $131,761

7 0
3 years ago
An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended u
Alex Ar [27]

Answer:

TRUE

Explanation:

This is known as historical cost, a common term in generally accepted accounting principles (GAAP). It's the original cost recorded in the balance sheet when an asset acquisition is recorded. It takes into consideration all of the items that can be attributed to its purchase and putting the asset to use. These items include the purchase price and such factors as commissions, transportation, appraisals, warranties, installation, and testing. For example, if a company buy a computer system, the original cost can include delivery charges, sales taxes, and setup fees.

7 0
3 years ago
Other questions:
  • Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas,
    13·1 answer
  • You are in charge of advertising for a golf course in the southwest. the owner of the course is convinced that once-a-week adver
    11·1 answer
  • Green Cleaning purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned ite
    10·1 answer
  • A publishing company sells 1,250,000 copies of certain books each year. It costs the company $1 to store each book for a year. E
    12·1 answer
  • Joe regularly positions dies by hand into a machine press. he is beginning to experience cramps in his right hand. which action
    7·1 answer
  • What is the name of the international community of network designers, operators, vendors and researchers concerned with the evol
    15·1 answer
  • Capitalizing goodwill only when it is purchased in an arm's-length transaction, and not capitalizing any goodwill generated inte
    15·1 answer
  • Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed
    13·1 answer
  • Give at least five (5) names of entrepreneurs that you know, may it be from your locality or within the Philippines. Identify wh
    9·1 answer
  • Businesses see less demand and begin to lose money. Unemployment and interest rates rise, and consumers
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!