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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.

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Based on writing standards, the inquiry letter for purchase should begin with the sender's address and be written like a formal letter.

<h3>Structures of Letter of Inquiry.</h3>
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Hence, in this case, it is concluded that there are specific ways to write a good inquiry letter.

Learn more about Inquiry Letter here: brainly.com/question/4208084

4 0
3 years ago
90 + 150 is what <br>a 140<br>b 240<br>c 350<br>d150​
My name is Ann [436]

Answer:

B 240

Explanation:

6 0
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When evaluating the pulmonary function test results for a COPD client, which one correlates to the mismatch of ventilation and p
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Answer:

The correct answer is B.

Explanation:

I had to look at the options so that I could solve the exercise correctly. The options are:

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The correct answer is option B. In people with chronic lung disease, FVC is decreased, FEV1.0 is decreased, and the ratio of FEV1.0 to FVC is decreased. Lung volume measurements indicate a large increase in VR, an increase in total lung Cc, and an elevation in the ratio of VR to TVC.

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Option B                                  

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    Thus, from the above we can conclude that the correct option is B .

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