Answer:
Paid in Captial Increases
Explanation:
They made money off of the stock they purchased and resold
Answer: Oligopoly
Explanation: In simple words, oligopoly refers to a market structure in which the market is dominated by small number of large buyers. The activities of one firm in such a market affects the other participants as well. Automobile industry is one of the many examples of oligopoly.
In the given case, the two producers are willing to share the market individually so that they can enjoy better amount of profits. Also they are arranging to set prices as per each others opinions so that no one looses.
Hence from the above we can conclude that the given case illustrates oligopoly.
Answer:
Calculation of Gain or Loss:
Book Value of Truck:
= 25,000 - 22,500
= $2,500
Gain on Exchange:
= 4,125 - 2,500 - 625
= $1,000
Therefore, the journal entry is as follows:
Accumulated Depreciation A/c Dr. $22,500
computer A/c Dr. $3,125
To Truck $25,000
To Cash $625
(To record the Truck)
Answer:
$116 million
Explanation:
January 1 8,000,000*(15-1) =$112,000,000
December 28 Treasury stock sold 2,000,000*(20-18)=$4,000,000
Paid in Capital At December 31,2016 $116,000,000