Answer:
D. All of these answer choices are correct.
Explanation:
When a company purchases its own shares then the equity capital is reduced, as it is not an investment, but rather reducing the ownership share.
Equity value reduces with the par value of the share.
The paid in capital in excess of par value shall also be reduced if the share is bought for a value more than the par value, but in case if it is bought for less than the par value then the par value shall reduce the equity balance and that the difference in par value and bought up value shall be added to retained earnings.
In the given instance the total equity shall be reduced by $125,000
In this the equity capital by $50,000 and paid in capital in excess of par value by $125,000 - $50,000 = $75,000
Thus, all the statements are correct.
Answer:
The answer is C.
Explanation:
Necessity goods are the goods or services that a consumer will continue buying whether income falls or the price rises. This type of goods are considered essential. The are not sensitive to price. To Jane, Diet coke is a necessity because she takes it everyday.
While luxury goods are goods that are really not essential. They are owned or bought for the sake of showing wealth or affluence. To Jane, gourmet cheese is a luxury good.
Answer:
(a) $2,040
(b) $1,020
Explanation:
(a) Under the accrual method of accounting revenue is recognized in the month when product is delivered,
Revenue is recognized on the March income statement from this order:
= Units Delivers × Unit price
= 136 × $15
= $2,040
(b) Revenue is recognized on the April income statement from this order:
= Units Delivers × Unit price
= 68 × $15
= $1,020
Answer:
You will pay $744,680.85 for the policy
Explanation:
Step 1
Since cash flow is a perpetuity, we can derive the following expression;
P.V=C/r
where;
P.V=present value of the investment
C=cash flow
r=annual rate of return
In our case;
P.V=unknown
C=$35,000
r=4.7%=4.7/100=0.047
replacing;
P.V=35,000/0.047
P.V=744,680.8511
744,680.8511 rounded off to 2 decimal places=744,680.85
You will pay $744,680.85 for the policy
Answer: if too many people ask for money, and there is not enough
Explanation:
The Great Depression was one of the biggest bank runs where too many people TRIED to withdraw their money, but if there wasn't enough money the bank owes too many people many, like the Great Depression.