Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.
Explanation:
A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.
Options contracts come in 100s so;
Acquisition cost = (50 - 2) * 100
= 48 * 100
= $4,800.
The date of acquisition is the day the put was exercised.
Answer:
Option B. Implement process innovations that lower per unit costs
Explanation:
The reason is that the controlling cost will give cost advantage over the competitors and will let the company to compete at a better platform making greater number of sales and driving maximum sales which will also give economies of scale. Economies of scale is the benefits of additional costs savings that comes with the additional manufacturing of the product which means that greater the manufacturing the greater would be the savings of costs. So economies of scales give competitive advantage over the rivals so the correct option is B.
I HAVE TO PUT 20 CHARACTERS SO LALALALALALALLALALAL... The answer is A
Answer:
Treasury stock = Number of shares repurchased × Cost of repurchased share
=100 Shares×$26
=$2,600
Additional paid-in-capital= Number of shares repurchased × (Reissue price - Cost)
=100 Shares × ($28−$26)
=$200
Hence, the treasury stock and additional paid in capital to be recorded in the journal entry will be $2,600 and $300 respectively.
Date Account Title Debit Credit
Cash (100 shares * $28) $2,800
Treasury stock (100 shares * $26) $2,600
Additional paid in capital ( 100 shares * $2) $200
(To record the reissue of treasury stock shares)
