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3 years ago

Consider each situation for Kathy, Inc. below independently.

Business

1 answer:

drek231 [11]3 years ago

8 0

Answer:

Kathy, inc.

a. The land should be recorded initially at $250,000. This is what it caused the company to acquire it in exchange for common stock.

b. The total amount that should be recorded for additional paid-in capital from the second situation is:

= $4,000.

Explanation:

Data and Calculations

a. Common stock issued for land = 10,000

Par value of common stock = $25

Market value of common stock = $35

Appraised value of land = $400,000

Value of land = $250,000 ($25 * 10,000)

b. Outstanding common stock = 500,000 shares

New issue of 2,000 $10 par Class A common stock at $12 = $24,000

New issue of 100 shares of no-par Class B common stock at $20 = $2,000

Total amount received = $26,000

Common stock value:

2,000 at $10 = $20,000

Additional paid-in capital = $4,000 ($24,000 - $20,000)

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3 years ago

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1 year ago

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2 years ago

In a small town, a steel mill produces air pollution. if the government does not intervene, the equilibrium price of steel wil

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3 years ago

Time to reach a financial goal You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the e

andrew11 [14]

Answer:

It take to reach your goal is 11 years

Explanation:

given data

initial fixed amount = $42,180.53

deposit additional = $5,000

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solution

we will apply Future value of annuity that is express as

Future value of annuity = initial fixed amount × $(1+r)^{t}$ + deposit additional × $\frac{(1+r)^t-1}{r}$ ......................a

put here value and we get

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3 years ago