1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Schach [20]
3 years ago
5

Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o

f capital stock.
Business
1 answer:
LenaWriter [7]3 years ago
6 0

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

You might be interested in
Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an acti
Yuliya22 [10]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Activity Cost Pool Activity Measure Total Cost Total Activity

Machining Machine-hours $330,000 15,000 MHs

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Machinning:</u>

Predetermined manufacturing overhead rate= 330,000 / 15,000

Predetermined manufacturing overhead rate= $22 per machine-hour

<u>Machine setups:</u>

Number of setups $50,000 100 setups

Predetermined manufacturing overhead rate= 50,000/100

Predetermined manufacturing overhead rate= $500 per set-up

6 0
3 years ago
A generic market Multiple Choice a. often includes consumers who will satisfy the same need in quite different ways. b. often in
mariarad [96]

Answer:

e. has all of these characteristics.

Explanation:

A generic market has the characteristic of fulfilling similar needs in number of manners for the customers.

In this manner the ultimate goal of different customers, which is same is achieved by this market.

As for example in the season of winters, the ultimate goal is to feel warm,

For this, some producers or sellers offer, hot cup of coffee, or soup, and some might offer air warmers for the house, some might offer to buy jackets!

Ultimately there are different customers with common goal, but different needs, and different suppliers fulfilling common needs.

Thus, all of the above statements are true about generic market.

4 0
3 years ago
Roselyn works for an event management company. her latest project as a party planner is a corporate event. she delegates tasks l
Alex_Xolod [135]
Roselyn's project is in the PLANNING phase of the project management. Project management generally are divided into six stages, which are: definition, initiation, planning, execution, monitoring and control and closure. The project planning stage is the phase in the project life cycle, that involves creating set of plans that will guide the overall execution of the project.
3 0
4 years ago
What information would you find in an adress book?
Alekssandra [29.7K]

An address book is a book or a database used for storing entries called contacts. Each contact entry usually consists of a few standard fields (for example: first name, last name, company name, address, telephone number, e-mail address, fax number, mobile phone number).

4 0
3 years ago
Read 2 more answers
Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation.
Sedaia [141]

Answer:

Option "C" is the correct answer to the following statement.

Joker, Klue, and Lion Corporations

Explanation:

A group of controlled business is described as a community of two or more companies, businesses or firms.

Joker Corporation purchases 80%, 45% and 45% of Klue, Lion and Mark Corporation respectively.

Klue Corporation purchases 40% and 10% of Lion and Mark Corporation.

In this situation, Joker corporation is created a Parent-subsidiary relationship with other firms. where Klue corporation creates brother-subsidiary relation with  Lion and Mark corporation.

3 0
3 years ago
Other questions:
  • 19th century how successful were labor organizations in improving the working conditions for, and advancing the interests of ind
    14·1 answer
  • Virginia sees Carl, with whom she attended high school 15 years ago, driving near her in rush hour traffic. She honks and waves
    9·1 answer
  • Which magazine published the article "The Rise of Crowdsourcing" in 2006?
    15·2 answers
  • On Sept 9, Daniels Corporation earns $2,000 by performing consulting services. Their customer said that she would pay next month
    11·1 answer
  • The heat sinks needed are bought for $14 each and are ordered in quantities of 1200 units. Annual demand is 6200 heat sinks, the
    5·1 answer
  • In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a
    11·1 answer
  • The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's
    5·2 answers
  • Strikes are much more disruptive in pro sports than in mainstream business because A. players have unique talents and cannot be
    13·1 answer
  • Year ended December 31​ (in $millions) 2006 2005 Total sales 610.1 578.3 Cost of sales minus−500.2 minus−481.9 Gross profit 109.
    14·1 answer
  • In deciding whether to accept a special sales order which of the following costs are likely relevant?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!