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Dvinal [7]
3 years ago
10

Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more

than their acquisition price. What is the effect of the sale of the treasury stock on each of the following?
Retained earnings Total paid-in capital
a. no effect increase
b. no effect no effect
c. increase no effect
d. increase increase
a) Option A
b) Option B
c) Option C
d) Option D
Business
1 answer:
allsm [11]3 years ago
5 0

Answer: a) Option A

Explanation:

There will be no effect on retained earnings because retained earnings do not increase as a result of shares being sold. It increases when net income increases.

Total paid-in capital increases when stock is sold for higher than its par value or when treasury stock is sold for higher than its acquisition price. The treasury stock here was sold for higher than it was bought so this would increase the total paid in capital.

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Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike
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Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions.  The debt-to-equity ratio measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

The debt to equity ratio using the book value of equity in 2019 would be 2.29.

Finding the debt-to-equity ratio.

This can be found by the formula:

= Interest bearing Debt / Book value of equity

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= (10.5 + 39.9 + 239.7) / 126.6

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Learn more about debt-to-equity  here

brainly.com/question/21408403

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7 0
1 year ago
Which of the following is NOT a federal income tax deduction?
11Alexandr11 [23.1K]

Answer: a)

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Throughout this course Dr. Jude has provided you with a variety of examples of the Presentation Zen approach to presentation des
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Answer:

b. Behavior modeling

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In this type of model a person can learn through observation of the model. He now imitates what has been seen.

In the given scenario Dr. Jude has provided a variety of examples of the Presentation Zen approach to presentation design and delivery in action.

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