Answer:
The stockholder's equity will be increased by $500
Explanation:
While stockholders equity is the amount of assets available to shareholders after all liabilities have been settled , treasury stock is the stock that is bought back by the issuing organisation with the aim of reducing the number of outstanding stock in the open market.
Looking at the scenario given , it was an indirect way of raising fund and increasing the equity of the stockholders equity as the treasury stock was later resold at a higher price.
Therefore , the stockholder's equity increases by 3,000- 2500 = 500
Answer:
decrease
Explanation:
Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.
Answer:
Price of the bond is $940.
Explanation:
Price of bond is the present value of future cash flows. This Includes the present value of coupon payment and cash flow on maturity of the bond.
As per Given Data
As the payment are made semiannually, so all value are calculated on semiannual basis.
Coupon payment = 1000 x 11% = $110 annually = $55 semiannually
Number of Payments = n = 11 years x 2 = 22 periods
Yield to maturity = 12% annually = 6% semiannually
To calculate Price of the bond use following formula of Present value of annuity.
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$55 x [ ( 1 - ( 1 + 6% )^-22 ) / 6% ] + [ $1,000 / ( 1 + 6% )^22 ]
Price of the Bond = $55 x [ ( 1 - ( 1.06 )^-22 ) / 0.06 ] + [ $1,000 / ( 1.06 )^22 ]
Price of the Bond = $662.29 + $277.5
Price of the Bond = $939.79 = $940
Based on the above scenario, Since it is in its growth phase, I believe that the manufacturer should agree to make this changes.
<h3>Why agree to the changes?</h3>
Note that there are regulations on how to use of the existing food coloring and as such it is vital for the company to see or consider this change.
Note that since it is in its growth phase, the product is widely accepted and there are lot of holiday sales.
Therefore, Based on the above scenario, Since it is in its growth phase, I believe that the manufacturer should agree to make this changes.
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Answer:
The correct response is "145,000
".
Explanation:
The given values are:
Purchased cost,
= $150,000
Expenses,
= $5,000
Selling cost,
= $10,000
Now,
Logan's basis for depreciation will be:
= 
On putting the values, we get
= 
= 
= 
($)
