Answer:
$100
Explanation:
As we know that:
Paid-in Capital = Amount Received - Common stock at par value
During the issuance of common shares:
Here the par value given is $6 per share, so the total common stock value for 100 shares is $600 (100 shares * $6 per share) and the amount received is $700 when the common stock was issued.
So by putting the value in the above equation we have:
Paid in Capital = $700 - $600 = $100
Entry of issuance of shares:
Dr Cash $700
Cr Common stock $600
Cr Paid in capital $100
So now remember that the maximum decrease in paid in capital to repurchase of common stock would be by $100 because this is the amount that is related to purchased common stock of 100 quantity.
So if the company purchases its common stock higher than the value it was issued before then it will decrease the paid in capital by the amount that is related to the stocks that have increased paid in capital (100 shares increased the paid in capital by $100) and the resultant would be deducted from the retained earnings.
The journal entry of Purchase of Treasury
Dr Common Stock $600 .... Decrease in Com.Stock at par value ($6*100)
Dr Paid in Capital $100 .... Decrease in APIC at associted share ($7-$6)
Dr Retained Earnings 300 .... Remainder ($1000-$600at par - $100Paid In)
Cr Cash $1,000
Graphic designers create visual concepts, using computer software or by hand, to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for applications such as advertisements, brochures, magazines, and reports.
Its b
Explain:
The reason it’s because the government collects taxes which are considered leakages
Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
So the expected rate of return of the stock is 5.90%
Best of luck.
Answer:
An apparel company has introduced three different varieties of shoes at different price points. [Product line pricing]
A company that produces shampoos have now introduced dishwashing liquids in the market. [Brand extension]
A shoe company sells its floaters at a price that does not even cover its production cost. [Loss leadership Pricing]
A chocolate company introduces its new range of chocolates at a discounted price for limited stock only. [Promotional pricing]
Explanation
Product Line Pricing: This strategy of separating products into various price categories may or may not have anything to do with their cost. It, however, achieves the effect of making one seem of a higher quality than the other.
Brand Extension:
Brand extensions serve the primary purpose of maintaining brand dominance and or relevance in the mind of the consumers.
Loss Leadership Pricing: This strategy is often used to attract the attention of customers. As customers compare the price of this product with similar/competing products, it can even create a mindset with customers that the business has very cheap products. This ultimately leads to more purchases and ultimately an increase in the bottom line of the business. This strategy is seldom used in isolation. The business almost always makes up for this loss relying on the increased volume of sales or by marking up other products slightly.
Promotional Pricing:
There are consumers who are very price sensitive. This strategy by the nature of its design almost always attracts their patronage. Depending on the creativity of the Marketing Officer, this can be used to increase consumer loyalty.
Cheers