Answer:
The most probable result is that the court will declare the contract invalid and non-binding because the purchase price and important terms regarding the consideration involve are too vague and indefinite.
In order for a contract to be considered valid and binding, consideration must exist and the more precise the terms, the better. Consideration is something of value that both parties exchange. In this case it is a house vs. money, but the price is not specified.
Answer:
<u>low opportunity cost</u>
Explanation:
<u>Opportunity cost</u> is described as a process in which an individual sacrifices something when they tend to choose one thing or option over another option or thing.
<u>Low opportunity cost: </u>The term "low opportunity cost" is determined as the possibility of an individual's chosen investment returns to be lower than the forgone investment's returns.
Answer:
1. $28,800
$103,200
2. $28,800
$103,200
3. $86,400
$45,600
Explanation:
1. The dividend paid to preferred stockholders = Shares × Par value × Percentage
= 3,000 shares × $120 × 8%
= $28,800
The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders
= $132,000 - $28,800
= $103,200
2. The dividend paid to preferred stockholders = Shares × Par value × Percentage
Note :- Because preferred stocks are non-cumulative in nature, the company is not allowed to pay last two years' dividends and preferred stocks are liable for payment only for the current year.
= 3,000 shares × $120 × 8%
= $28,800
The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders
= $132,000 - $28,800
= $103,200
3. The dividend paid to preferred stockholders = Shares × Par value × Percentage × Number of years
Note: Since preferred stocks are cumulative in nature, the company is forced to pay last two years' dividends along with the current year's dividend.
= 3,000 shares × $120 × 8 % × 3 years
= $86,400
The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders
= $132,000 - $86,400
= $45,600
Answer:
(C) debit to Payroll Tax Expense for $1,148
Explanation:
"employer's payroll taxes" This means we are asked for the entry of the employer, not the employee.
The employer will contribute the same amount for FICA(medicare and social security) FUTA and SUTA
so the entry will be :
<u>payroll tax expense debit 1148</u>
FICA taxes payable credit 900
FUTA payable credit 32
SUTA payable credit 216
