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gizmo_the_mogwai [7]
2 years ago
3

Palmer Corp. owned 20,000 shares of Dixon Corp. purchased in 2006 for $240,000. On December 15, 2009, Palmer declared a property

dividend of all of its Dixon Corp. shares on the basis of one share of Dixon for every 10 shares of Palmer common stock held by its stockholders. The property dividend was distributed on January 15, 2010. On the declaration date, the aggregate market price of the Dixon shares held by Palmer was $400,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of
Business
1 answer:
vovangra [49]2 years ago
6 0

Answer:

Debit to Retained Earnings of $400,000

Explanation:

Based on the information given we were told that on the declaration date, the market price or the market value of the Dixon Corp shares that was been held by Palmer Corp was the amount of $400,000 which means that the entry to record the declaration of the dividend would include a debit to Retained Earnings of the amount of $400,000 which is the market value.

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Firm T produces 600 tires and sells them to Firm B at a cost of $30 each.
umka21 [38]

Answer:

$90,000; $18,000; $37,500; $34,500

Explanation:

Total contribution to GDP:

= Number of bicycles produces × Selling price of each

= 300 × $300

= $90,000

Value added by Firm T is calculated as follows:

= value of tires sold to Firm B

= Selling price of each tire × No. of tires produced

= $30 × 600

= $18,000

Value added by Firm F is calculated as follows:

= Value of bicycle frames sold to Firm B

= Selling price of each bicycle frame × No. of bicycle frames produced

= $125 × 300

= $37,500

Value added by Firm B:

= Value of bicycles sold to consumers - Cost of purchasing tires from Firm T - Cost of purchasing bicycle frames

= ($300 × 300) - $18,000 - $37,500

= $90,000 - $18,000 - $37,500

= $34,500

8 0
2 years ago
On January 2, 2021, Hanson Leasing Company leases equipment to Foley Co. with 5 equal annual payments of $240,000 each, payable
PSYCHO15rus [73]

Answer:

A Journal Entry was Entered for Hanson Leasing Company on January 2, 2021, and Debit to right-of-use asset= 113767

Explanation:

Solution

Given that:

The Journal Entry of Hanson  Leasing Company on January 2, 2012

Equal annual payments =240000

X PV Annuity Due 8%, 5 periods = 4.31213

Present value of Equal annual payments=1034911

Residual value=150000

X PV Single 8%, 5 periods=0.68508

Present value of residual value=102762

Present value of Equal annual payments=1034911

Add: Present value of residual value=102762

Debit to right-of-use asset= 113767

4 0
2 years ago
The Vice President of Biomedics is trying to decide on the composition of a new product development team. If she chooses members
Marina86 [1]

Answer:

b. Increase in communication and coordination costs

Explanation:

Based on the information provided within the question it can be said that she will likely experience a disadvantage with an Increase in communication and coordination costs. This is mainly due to the fact that those individuals are already used to communicating and coordinating with their teams in a very specific way that they have developed through months of working together. By putting members from different divisions together they have to learn how to coordinate with one another which will take time and money.

8 0
2 years ago
A new skateboard company, "Sk8ters" opens its doors across the street from the town’s existing skateboard company "Skate House".
Elenna [48]

Answer:

The correct answer is letter "C": predatory pricing.

Explanation:

Predatory pricing is the illegal practice of setting prices below competitors to wipe them out of the market. When the prices decline the situation could be favorable for consumers but after the competition is eliminated the predatory-pricing company is likely to raise the prices. Under that scenario, customers are at a disadvantage because they do not have many options from where to choose.

In the U.S., the Federal Trade Commission (FTC) is the body in charge of analyzing predatory pricing practices.

8 0
2 years ago
If oligopoly firms decide to work together, either formally or informally, and honor the agreement then profits can be ________
Leno4ka [110]

Answer:

The correct answer is: maximized; reducing; increasing.

Explanation:

An oligopoly market is a market structure in which there is a small number of firms. The business decisions of each firm affect its competitors. There is no restriction on entry and exit of firms. There is a high degree of competition between firms.  

The firms can maximize their profits if they collude and act like a monopoly. They can earn monopoly profits by reducing the level of output and increasing the price of products.  

4 0
2 years ago
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