20. (EFM12c) How are market prices set?

Olive Branch Inc. had 400,000 shares of common stock issued and outstanding at December 31, 2016. On July 1, 2017 an additional

klasskru [66]

Answer:

$512,000

Explanation:

The computation of Number of Share included for computing diluted earning per share is shown below:-

For computing the Number of Share included for computing diluted earning per share we need to find out the issued shares and Stock option which is given below

Issued Shares = 200,000 × 6 ÷ 12 (From July to December)

= $100,000

Stock option = 60,000 - (60,000 × $28 ÷ $35)

= $12,000

So, Total stock outstanding = Shares at Beginning + Issued Shares + Stock option

= 400,000 + $100,000 + $12,000

= $512,000

3 0

3 years ago

One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in Germany, Ireland, and Canada th

cestrela7 [59]

Answer:

The answer is: globalization of production

Explanation:

Globalization of production to the business practice of increasing the flow of production factors from "cheaper" countries in order to lower their production costs. For example, cars are assembled using thousands of different auto parts, a lot of them are produced in the US, but a large portion are imported parts form countries like China, Mexico, EU, etc. Many times the auto parts are manufactured by the same corporation but on different locations, e.g. BMW produces engines in Germany and SUVs in the US, 3M produces auto parts in the US, Brazil, China, Mexico and several other countries and sells them all in the US.

4 0

3 years ago

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market a

Anton [14]

Answer:

c. there will be a shortage of the good.

Explanation:

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound: c. there will be a shortage of the good.

The correct answer is - c. there will be a shortage of the good.

Reason -

At the equilibrium price, the demand = supply

If the price is increased by the equilibrium price then, there are more customers(i.e. quantity demanded is increase ) and there is shortage of goods (i.e quantity supplied will decrease)

So, the correct option is - c. there will be a shortage of the good.

3 0

3 years ago

On January 1, 2019, Richard Corporation acquired machinery at a cost of $750,000. The corporation adopted the double-declining b

butalik [34]

Answer:

The depreciation for the year 4 is $54,857.

Explanation:

The double declining depreciation method would be used which is as under:

Double Declining depreciation = (Cost - Acc. Depreciation) * 2 / Useful life

Now by putting values, we have:

Y1 Depreciation = ($750,000 - 0) * 2 / 10 years = $150,000

Y2 Depreciation = ($750,000 - 150,000) * 2 / 10 years = $120,000

Y3 Depreciation = ($750000 - $150,000 - $120,000) * 2 / 10 years

= $96,000

Now from year 3 onward, the depreciation method was straight-line and which can be calculated as under:

Straight-line Depreciation = (Cost - Salvage value) / Useful Life

Here

Cost = $750000 - $150,000 - $120,000 - $96,000= $384,000

Remainder life is 7 years

Now by putting values, we have:

Y4 Depreciation = ($384,000 - 0) / 7 years = $54,857

5 0

3 years ago

Supply chain management refers to a relatively new business phenomenon meaning:

inna [77]

The administration of upstream and downstream association's with providers and clients to convey better incentive at less cost than the inventory network all in all.

8 0

3 years ago