Answer:
(1) stock dividends
retained earnings will decrease by 2.830.500
total stockholders equity will remain unchanged. the rdecrease in RE is countered with the increase in common stock and additinal paid-in capital
the price will be kept at $51 as the company reocgnize this as the stock value when issuing the shares by using additional paid-in account for the difference between par value and market value
(2) the stock split
It generates no effect on the accounting as just additional shares at issued but the total capitalization and equity values are the same.
The price per share will be half as there is now double amount of shares:
$1 par value
and $25.50 market value
Explanation:
stock dividends
amount of shares issued:
370,000 shares x 15% = 55,500 shares
Retained Earnings decrease: 55,500 x 51 = 2.830.500
55,500 x $ 2 par value = 111,000 common stock
55,500 x $ (51-2) = 499,500 additional paid-in
Answer:
wrap-around loan
Explanation:
Based on the scenario being described within the question it can be said that the type of loan being described is known as a wrap-around loan. This is a type of loan in which involves the seller's mortgage on the home as well as an additional incremental value that the sums up to become the total purchasing price that the buyer will have to pay the seller over an period of time. Such as is described by the loan that Bill has taken.
Answer:
Cross-collateralization
Explanation:
Cross-collateralization is used as an asset to collateral an initial loan as collateral for another loan irrespective of subject of the loan.
For example: If a person takes a loan from the same bank a car loan secured by the car, a home loan secured by the house, and so on, then these assets can be used as cross-collaterals for other loans.
Hence, the correct answer is cross-collateralization.
The right answer for the question that is being asked and shown above is that: "b. benefits." Fern agrees to sell her guitar for $30 because she expects to gain more than she benefits from this sale.
They have a tax due of $6,453.36
Explanation:
Gross income = $159,800
Deductions for AGI = $5,500
Itemized deductions = $25,000
Tax credits = $2,000
Federal income tax = $22,000
AGI = gross income - deductions for AGI
AGI = 159800 - 5500
AGI = 154300
Taxable income = AGI - itemized deductions
Taxable income = 154300 - 25000
Taxable income = $1,29,300
Using tax table of 2019
Gross tax = 32170 + ( 129300 - 88359 ) × 24%
Gross tax = $17,546.64
Tax due = gross tax - tax credit - withholding
Tax due is = 17546.64 - 2000 - 22000 = - 6453.36
Tax due is = $6,453.36
