At January 1, 2022, Ivanhoe Company reported the following property, plant, and equipment accounts:
Accumulated depreciation—buildings $61,800,000
Accumulated depreciation—equipment 53,200,000
Buildings 97,600,000
Equipment 150,900,000
Land 21,000,000
The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred:
Apr. 1 Purchased land for $4.00 million. Paid $1.000 million cash and issued a
3-year, 6% note payable for the balance. Interest on the note is payable
annually each April 1.
May 1 Sold equipment for $270,000 cash. The equipment cost $3.90 million
when originally purchased on January 1, 2014.
June 1 Sold land for $4.20 million. Received $690,000 cash and accepted a 3
-year, 5% note for the balance. The land cost $1.40 million when purchased
on June 1, 2016. Interest on the note is due annually each June 1.
July 1 Purchased equipment for $2.80 million cash.
Dec. 31 Retired equipment that cost $1 million when purchased on December 31,
2012. No proceeds were received.
Required:
1. Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the an manually.
2. Prepare the property, plant, and equipment section of the company's statement of financial position at December 31.

Answers

Answer 1

Answer:

B

Explanation:

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually.


Related Questions

Ernesto excels at mathematics and has a keen eye for analyzing information. He is also a skilled communicator and does an excellent job explaining things to other people. Ernesto enjoys using the computer to generate reports to summarize his findings. Which is most likely Ernesto's job title?

Answers

Answer:

Business analyst

Explanation:

Answer:

its d

Explanation:

edg. 2021

Select the qualification that is best demonstrated in each example. Sonny spends a lot of time each day filing paperwork. Vikki prints multiple copies of a report for a meeting. Basil greets customers who visit his company. Asia schedules appointments for her boss.

Answers

Answer:

1. patience

2. office technology skills

3. verbal communication skills

4. organizational skills

Explanation:

Answer:here's the answer for this question

Explanation:edge2023

Which of the following is a true statement regarding operating costs:
They are fixed expenses.
They are not directly related to production.
They occur once or twice a year.
Only some businesses have them.

Answers

Answer:

They are not directly related to production.

Explanation:

Operating expenses are the costs incurred in running the affairs of a business on a day-to-day basis. They refer to the expenses associated with the maintenance and administration of a business. Operating expenses are also operational costs and include rent, machinery, payroll services, utilities, uniforms, and office supplies. operating cost also covers overhead expenses as well as the cost of goods sold

To maintain effective levels of competition in as many markets as possible, the government enforces ______.
antitrust laws
monopolies
mergers

Answers

The answers is monopolies

1. The point at which quantity demanded and quantity supplied are equal:______
2. The financial and opportunity costs con- sumers pay in searching for a good or service:_____
3. A system of allocating scarce goods and services by criteria other than price:_______
4. A sudden drop in the supply of a good:_______
5. Any situation in which quantity supplied exceeds quantity demanded:________
6. Any situation in which quantity demanded exceeds quantity supplied:________
7. A government-mandated minimum price that must be paid for a good or service:_________

Answers

Answer:

1. Market Equilibrium, 2. Interest Rate, 3. Rationing, 4. Supply Shock, 5. Excess Supply, 6. Excess Demand, 7. Price Floor

Explanation:

1. The point at which quantity demanded and quantity supplied are equal: Market Equilibrium

2. The financial and opportunity costs consumers pay in searching for a good or service : Interest Rate

3. A system of allocating scarce goods and services by criteria other than price: Rationing

4.  A sudden drop in the supply of a good: Supply (decrease - leftward shift) shock

5. Any situation in which quantity supplied exceeds quantity demanded: Excess Supply  

6. Any situation in which quantity demanded exceeds quantity supplied: Excess Demand

7. A government-mandated minimum price that must be paid for a good or service: Price Floor (Minimum Support Price)

Removing workplace barriers for women and accommodating employees who are physically challenged are ways a business can contribute to (a)environmental protection (b) job safety © workplace diversity (d) employee wellness

Answers

Answer:

workplace diversity

Explanation:

Workplace diversity is the term used to describe a workplace whose employees are composed of varying characteristics, such as gender, age-group, race, ethnicity, sexual orientation, and other attributes. Workplace diversity is achieved through the employer’s deliberate actions to incorporate people from diverse backgrounds.

Workplace diversity improves a company’s reputation and brings on board various perspectives in decision making. It also adds creativity and problem-solving skills to the company.  

Candace works for a small marketing firm that focuses on ads that pop up on social media web pages. Candace most
likely works in
O Marketing Research.
O Professional Sales.
O E-Marketing.
O Distribution and Logistics.

Answers

Answer:

O E-Marketing.

Explanation:

E-marketing is Electronic marketing. It is also known as online marketing and refers to marketing done through the internet.  E-marketing combines traditional marketing concepts with modern technology. It involves marketing a company's products and services through the internet using computers and mobile devices as mediums.

Answer:

E-Market

Explanation:

Did on edge

what are the major components of a business operating plan?​

Answers

Answer:

capital

investors

knowledge in field

how can we build up strong analytical skill discuss​

Answers

Answer:

hope help you

Explanation:

Here are several ways you can improve your analytical skills:

Read more. An important part of being analytical involves being alert and remaining stimulated. ...

Build your mathematical skills. ...

Play brain games. ...

Learn something new. ...

Be more observant. ...

Join a debate club. ...

Take an exercise class. ...

Keep a journal.

21. A small object is placed at right angles to the axis of a fixed concave
mirror so as to form (i) a real (ii) a virtual image, twice as long as the
object. if the radius of curvature of the mirror is 40cm, what is the
distance between the two images?
Ans: 60cm
om
chat and in ito​

Answers

Answer: 60 cm

Explanation:

Given that:

Radius of curvature (R) = 40 cm

Radius of curvature is 2 tines the Focal length:

Focal length (f) = 40/2 = 20

Object distance = u

Image distance = v

Image (v) = 2u

1/v + 1/u = 1 /f

1/2u + 1/u = 1/20

(1 + 2) /2u = 1/20

3 / 2u = 1/20

2u = 60

u = 60/2

u = 30 cm

v = 2u

v = 2(30)

v = 60 cm

The table shows the terms of a fixed-rate mortgage.
Which accurately describes the terms of this mortgage? Check all that apply.

The homeowner is borrowing $360,000.
The monthly interest rate is 4 percent.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
Monthly payments must be made for 360 years.

Answers

The fixed-rate mortgage concept is used in home loans. Monthly payments for 30 years, the interest rate is 4.8%, and borrowing $200,000.

What is a fixed-rate mortgage?

It is usually used in home loans with a fixed interest rate during the term of the loan. It is beneficial because once the rate of interest is fixed it is not influenced by the increase in the rate in the future.

C - Monthly payments for 30 years.

D - The interest rate is 4.8 % annually

E -  borrowing $200,000.

Therefore, options C, D, and E explain the fixed-rate mortgage.

Learn more about  fixed-rate mortgages here:

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Multicore microprocessors are formed by:
a) connecting a series of high powered processors through a single power source.
b) connecting a series of high powered processors through a single power source.
c) connecting identical processors in a parallel combination and drawing power from the same source.
d) connecting identical processors in a parallel combination and drawing power from the same source.
e) putting two or more lower power processor cores on a single chip. putting two or more lower power processor cores on a single chip.
f) slicing a flat chip into pieces and reconnecting the pieces vertically.

Answers

It’s E. putting two or more lower power processor cores on a single chip. putting two or more lower power processor cores on a single chip

I hope this helped out! Have a nice day :)

refers to the buying and selling of products and services
through an electronic medium such as the internet

O E-commerce
O Money orders
O Telegraphic money transfers
M-money​

Answers

Explanation:

E commerce refers to the buying and selling of products and services through an electronic medium such as the internet.

Most employers list only the most significant employee tasks in a job description.

False

True

Answers

Answer:

its false

Explanation:

just took quiz on edge 2020

Bernd Pischetsrieder, chief executive of Volkswagen, announced restructuring plans for the company. VW is Europe's largest carmaker and needed to make itself profitable once again. To do so, VW cut thousands of jobs in the ensuing years through natural attrition, early retirement, and buying workers out of their contracts. The carmaker also considered whether its component parts factories in Brunswick, Kassel, and Wolfsburg were helping VW accomplish its organizational goal. Pischetsrieder blamed much of the company's problems on restructuring that was done in 1993. He insisted that the company is missing a whole generation of managers because its former CEO eliminated a whole layer of management. Now, 45 percent of managers were expected to go into retirement in the following three or four years.
1. Refer to Volkswagen. VW is examining the ____ of its component parts factories.
a. efficiency.
b. synergy.
c. effectiveness.
d. autonomy.
e. reliability.
2. Refer to Volkswagen. The restructuring efforts mainly involved which of the management functions?
a. leading.
b. commanding.
c. resource allocation.
d. organizing.
e. controlling.
3. Refer to Volkswagen. Bernd Pischetsrieder exercised the organizing function when he made decisions about how to replace retiring managers. His decisions will, in turn, affect which management function as new managers come on board?
a. leading.
b. commanding.
c. resource allocation.
d. organizing.
e. controlling.
4. Refer to Volkswagen. Bernd Pischetsrieder is an example of a:
a. supervisor.
b. middle manager.
c. first-line manager.
d. team leader.
e. top manager.
5. Refer to Volkswagen. In making his announcement about restructuring, Pischetsrieder assumed the ____ role.
a. figurehead.
b. spokesperson.
c. liaison.
d. disseminator.
e. monitor.
6. Refer to Volkswagen. In late September, Pischetsrieder flew to Brussels to meet with employees at a VW plant and explain his plans for improving the company's profitability. In this example, the CEO assumed the role of:
a. figurehead.
b. spokesperson.
c. liaison.
d. disseminator.
e. monitor.

Answers

Answer:

1.- c. effectiveness.

2.-d. organizing

3.-a. leading

4.-e. top manager.

5.-b. spokesperson.

6.-d. disseminator

Explanation:

1.-Effectiveness is the capability of producing a desired result or the ability to produce desired output.

2.-Organizing  is the establishment of effective authority relationships among selected work, persons and work places in order for the group to work together efficiently.

3.-Leading is the use of influence to motivate employees to achieve organizational goals.

5.-A spokesperson, is someone engaged or elected to speak on behalf of others

6.-d disseminator – This is where you communicate potentially useful information to your colleagues and your team

Data entered into a computer is called a...

Answers

Answer:

Input

Explanation:

Data going into the computer is called Input . Whatever goes into the computer. Input can take a variety of forms, from commands you enter from the keyboard to data from another computer or device. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device.

For a criminal case, which of the following represents the correct order of
events during a trial?
A. The State presents opening arguments, then the defense presents
opening arguments; The State presents its case first, then the
defense presents its case.
B. The defense presents opening arguments, then the State presents
opening arguments; The State presents its case first, then the defense presents its case.
C. The defense presents opening arguments, then the State presents
opening arguments; The defense presents its case first, then the State presents its case.
D. The State presents opening arguments, then the defense presents
opening arguments; The defense presents its case first, then the State presents its case.

Answers

Answer: A. The State presents opening arguments, then the defense presents  opening arguments; The State presents its case first, then the  defense presents its case.

Explanation:

In a criminal trial the burden of proof lies with the State which means that it is up to them to prove that the individual is either guilty or not. For this reason they have to give the opening arguments.

The defense then gives their opening statement as well. After this is done the State presents its case and the facts thereof to the jury. The defense will now come and present its case and show their own interpretation of the facts of the case.  

ANSWER THIS AND ILL CASH APP YOU !! ( has to be at least 2000 words and make sense)

Imagine you are an executive for a Fortune 500 company and you are preparing a presentation for the board of directors about the organization’s direction. Choose an organization that is a public company to write this assignment.

Answers

There is no shortage of schools for businesspeople of every specialty: accountants, engineers, financiers, technologists, information specialists, marketers, and, of course, general managers, who have their choice of hundreds, if not thousands, of M.B.A. programs. But where is the school for the person in charge of getting the best results from all these members of the organization? There is no school for CEOs—except the school of experience. Chief executives must learn on the job how to lead a company, and they must learn while every stakeholder is watching.

The CEO’s job is like no other in the organization. It is infinite. Senior executives are, by definition, ultimately responsible for every decision and action of every member of the company, including those decisions and actions of which they are not aware. CEOs—even new ones—are allowed few mistakes. Not surprisingly, research shows that between 35% and 50% of all CEOs are replaced within five years. That is a costly proposition for any organization, for no company can lose its leader without losing some sense, even temporarily, of its identity and direction.

Two years ago, our interest in the role of the CEO prompted us to begin an extensive study of how senior executives lead. Over 12 months, we interviewed 160 chief executives around the world, most of whom were running major corporations in industries as diverse as gold mining, computers, and soft drinks. Our goal was to examine the set of attitudes, activities, and behaviors that determined how those executives managed their organizations. To be honest, going into the project we hypothesized that there might turn out to be 160 different approaches to leadership. There were not. Only 5 distinct approaches emerged from our data.

No matter where a company is located or what it makes, its CEO must develop a guiding, over-arching philosophy about how he or she can best add value. This philosophy determines the CEO’s approach to leadership. By approach, we mean which areas of corporate policy—for example, strategic planning, R&D, or recruiting—receive the most attention, what kind of people and behaviors the CEO values in the organization, which decisions the CEO makes personally or delegates, and how he or she spends each day. A leadership approach is a coherent, explicit style of management, not a reflection of personal style. This is a critical distinction. (See the sidebar “What’s Personality Got to Do with It?”) We found that in effective companies, CEOs do not simply adopt the leadership approach that suits their personalities but instead adopt the approach that will best meet the needs of the organization and the business situation at hand. Is the industry growing explosively or is it mature? How many competitors exist and how strong are they? Does technology matter and, if so, where is it going? What are the organization’s capital and human assets? What constitutes sustainable competitive advantage, and how close is the organization to achieving it? The answers to questions such as these determine which of the following five leadership approaches an effective CEO will adopt.

1. The Strategy Approach.

CEOs who use this approach believe that their most important job is to create, test, and design the implementation of long-term strategy, extending in some cases into the distant future. Their position overseeing all areas of the corporation, they explain, gives them the unique ability to determine their organizations’ allocation of resources and optimal direction. On a day-to-day basis, they spend their time in activities intended to ascertain their organizations’ point of departure (the current business situation) and point of arrival (the most advantageous market position in the future). These CEOs devote approximately 80% of their time to matters external to the organization’s operations—customers, competitors, technological advances, and market trends—as opposed to internal matters such as hiring or control systems. It follows, then, that they tend to value employees to whom they can delegate the day-to-day operation of their organizations as well as those who possess finely tuned analytical and planning skills.

2. The Human-Assets Approach.

In marked contrast to CEOs in the above group, human-assets CEOs strongly believe that strategy formulation belongs close to the markets, in the business units. According to these CEOs, their primary job is to impart to their organizations certain values, behaviors, and attitudes by closely managing the growth and development of individuals. These executives travel constantly, spending the majority of their time in personnel-related activities such as recruiting, performance reviews, and career mapping. Their goal is to create a universe of satellite CEOs: people at every level of the organization who act and make decisions as the CEO would.

Required Answer:-

We took a look at some of the preferred qualifications among the CEOs that lead the top 10 companies on the Fortune 500 list. Doug McMillon, CEO of Walmart. Jeff Bezos, CEO of Amazon.com. Darren Woods, CEO of Exxon Mobil. Larry Merlo, CEO of CVS Health. Warren E. David Wichmann, CEO of UnitedHealth Group. Brian S.

Choose a company of your choice

1. Who is an Antagonist?

Answers

Answer:

It's the person in the story who is kind of the 'bad guy'

Explanation:

They oppose the main character

Answer:

Hope it helps

Explanation:

a person who actively opposes or is hostile to someone or something; an adversary.


How is planning made and why is it importante​

Answers

it's important to plan ahead so that you know what you're getting yourself into.

The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives. Productivity is maximized and resources are not wasted on projects with little chance of success.


Hope this helps it’s my greatest answer/guess







Which careers require a person to find independence in working alone?

Answers

Answer:

Visual Arts??

Explanation:

When they work on every visual art project, the artists want to be isolated and away from anyone. Few examples of visual artwork are architecture, craft, painting, and photography, and a lot more can be applied to this category. In any situation, though the artist likes solitude and being alone since it means that they are closer to nature, and can therefore rely more on their work that can be ruined by even the slightest flaw.

Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the declining record sales the company was facing. Melissa needed to find a way to find out what the customers really wanted, since One-Hit-Wonder didn't have accurate information like the competitors did. It was imperative that she find the correct strategy and information because the company was in financial trouble. The company's President wanted all employees to help find information and work as a team to develop better relationships that might help the company. He also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and team efforts, the company could get back on its feet as soon as they got reliable information.Mellissa will be working primarily with:<>The legal-political dimension.< >The labor market.< >The internal cultural dimension.< >Pressure groups.< >The sociocultural dimension.Which of the following best describes One-Hit-Wonder's culture?< >Clan culture< >Achievement culture< >Adaptability culture< >y culture< >None of these

Answers

Answer:

the answer to the first question is:

⇒ The sociocultural dimension.

the answer to the second question is:

⇒ Adaptability culture.

Explanation:

In a business environment, sociocultural dimension refers to the culture of the company and the values shared by its members, e.g. how is leadership defined in the organization, how important is customer service, etc.

When an organization possesses cultural adaptability, it means that its members can easily adapt to changes in the environment, e.g. Sears didn't possess cultural adaptability and was never able to successfully adapt to online retailing.

How does comparative advantage influence international trade?
A. Comparative advantage helps countries produce a wide variety of goods for
trade.
B. Comparative advantage encourages countries to limit the foreign goods they
import.
C. Comparative advantage determines which goods a country should produce
for export.
D. Comparative advantage restricts the possible trade partners for most
countries.

Answers

Answer:

C. Comparative advantage determines which goods a country should produce  for export.

Explanation:

Just got it right on my quiz!

Comparative advantage determines which goods a country should produce for export. Thus, option 'C' is the correct option.

What is Comparative Advantage?

When a nation can produce an item or service at a lower opportunity cost than another nation, it is said to have a comparative advantage in economics. Political economist David Ricardo is credited with developing the concept of comparative advantage in his work Principles of Political Economy and Taxation (1817). A fundamental tenet of international commerce is comparative advantage, which serves as the foundation for the positive economic effects of free trade on nations.

The idea of comparative advantage demonstrates that trade may still be advantageous to both trading partners even when one country has an absolute advantage in producing products. Understanding the concept of an opportunity cost is essential to comprehending the principle of a comparative advantage.

Learn more about Comparative Advantage, here:

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Companies that fail to identify needs risk which of the following?
-loss of customers
-wasteful spending
-increasing interest
-increasing debt

Answers

Answer:

2. Wasteful Spending

Explanation:

In a business combination when each combining firm remains a legally incorporated separate entity:____.
a. the acquiring firm does not physically record the acquired firm's separate assets and liabilities.
b. the parent records on its accounting records each of the acquired assets and liabilities assumed in the business combination.
c. the parent company employs consolidated worksheet entries to help prepare a set of consolidated financial statements.
d. the parent records an investment account at the subsidiary's net book value of the assets acquired and liabilities assumed.

Answers

Answer:

a). the acquiring firm does not physically record the acquired firm's separate assets and liabilities.

c). the parent company employs consolidated worksheet entries to help prepare a set of consolidated financial statements.

Explanation:

Business Combination is characterized as an agreement through which the owner gains authority over a business or acquires it primarily to expand his/her business empire. When each combining firm persists a legally incorporated autonomous identity, 'the acquiring firm does not physically record the acquired firm's separate assets and liabilities and the parent company enrolls combined worksheet entries to assist prepare a group of combined financial statements.' It assists in making the acquisition easier and legally apt. Hence, options a and c are the correct answers.

How does Ana spend her time in seedfolks?

Answers

Answer:

B

Explanation:

Got it right on edg 2020

THERE ARE TEN BUTTONS ON THE TABLE

Answers

Answer:

what

Explanation:

..............................cool................

uh this makes no sense bruh

FIRST ANSWER GETS BRAINLIEST! (Personal & Family Finance)


Martine’s son is five years old. He loves to swim, but every year he needs a new swimsuit because he is growing so fast. Martine doesn’t have a lot of extra income to spend on bathing suits. What financial advice would you give to Martine about making this purchase?





Borrow money from a friend to buy a suit each year.





Use a credit card to buy swimsuits and pay it off later in the year.





Buy the next year’s swimsuit at the end of the summer each year.

Answers

Answer:

Buy the next year’s swimsuit at the end of the summer each year.

Explanation:

The end of summer presents a perfect time to buy swimwear. It is the time when almost all retailers hold their swim clearance sales. As retailers attempt to clear out their inventory, they give goods discounts, which Martine could take advantage of.

Martine's son could still use the swimwear in the following season.

explain the components of external environment.​

Answers

Answer:

The external environment is split into two categories: micro and macro. Larger sociocultural influences that impact society as a whole are included in the macro or wide environment. It consists of six elements: the demographic, economic, physical, technological, political-legal, and social-cultural environments.

Explanation:

Hope this helps!

Please mark me as Brainlineast.

The stockholders’ equity accounts of Culver Corporation on January 1, 2022, were as follows.
Preferred Stock (7%, $100 par noncumulative, 8,000 shares authorized) $480,000
Common Stock ($4 stated value, 480,000 shares authorized) 1,600,000
Paid-in Capital in Excess of Par Value—Preferred Stock 24,000
Paid-in Capital in Excess of Stated Value—Common Stock 768,000
Retained Earnings 1,100,800
Treasury Stock (8,000 common shares) 64,000
During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 8,000 shares of common stock for $48,000.
Mar. 20
Purchased 1,600 additional shares of common treasury stock at $7 per share

Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1.
Nov. 1 Paid the dividend declared on October 1.
Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.
Dec. 31 Determined that net income for the year was $450,000. Paid the dividend declared on December 1.
(a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)
(b) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.)
(c) Prepare the stockholders' equity section of the balance sheet at December 31, 2017.
(d) Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.)

Answers

Answer:

a) Feb. 1 Issued 8,000 shares of common stock for $48,000.

Dr Cash 48,000

    Cr Common stock 32,000

    Cr Paid-in Capital in Excess of Stated Value - Common Stock 16,000

Mar. 20  Purchased 1,600 additional shares of common treasury stock at $7 per share

Dr Treasury stock 11,200

    Cr Cash 11,200

Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1.

Dr Retained earnings (4,800 x 100 x 7%) 33,600

    Cr Preferred dividends payable 33,600

Nov. 1 Paid the dividend declared on October 1.

Dr Preferred dividends payable 33,600

    Cr Cash 33,600

Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.

Dr Retained earnings (398,400 x $0.50) 199,200

    Cr Common dividends payable 199,200

Dec. 31 Determined that net income for the year was $450,000. Paid the dividend declared on December 1.

Dr Common dividends payable 199,200

    Cr Cash 199,200

Dr Income summary 450,000

    Cr Retained earnings 450,000

b) T-accounts

Common stock

debit                credit

                       $1,600,000

                       $32,000      

                       $1,632,000

Paid-in capital in excess of par value - common stock

debit                credit

                       $768,000

                       $16,000  

                       $784,000

Treasury stocks

debit                credit

$64,000

$11,200  

$75,200

Retained earnings

debit                credit

                       $1,100,800

$33,600

$199,200

                       $450,000

                       $1,318,000

Preferred stocks

debit                credit

                       $480,000

Paid-in Capital in Excess of Stated Value - Common Stock

debit                credit

                       $24,000

c) Stockholders' equity section

Paid-in capital:

Preferred Stock (7%, $100 par                     $480,000

noncumulative, 8,000 shares authorized)

Paid-in Capital in Excess of Par                    $24,000                 $504,000

Value - Preferred Stock

Common Stock ($4 stated value,               $1,632,000

480,000 shares authorized)

Paid-in capital in excess of par                   $784,000           $2,416,000

value - common stock

Total paid-in capital                                                                   $2,920,000

Retained Earnings                                                                       $1,318,000

Treasury Stock (9,600 common shares)                                    ($75,200)

Total stockholders' equity                                                        $4,162,800

d) payout ratio = dividends per share / EPS

dividends per share = $0.50

EPS = $1.04

payout ratio = $0.50 / $1.04 = 0.48 = 48%

EPS = (net income - preferred dividends) / weighted average shares outstanding

net income = $450,000

preferred dividends = $33,600

weighted average shares outstanding = 400,000 - 8,000 + (8,000 x 11/12) - (1,600 x 79/365) = 398,987

EPS = ($450,000 - $33,600) / 398,987 = $1.0436 ≈ $1.04

return on common stockholders' equity = (net income - preferred dividends) / average stockholder's equity

average stockholders' equity = ($3,404,800 + $3,658,800) / 2 = $3,531,800

return on common stockholders' equity = $416,400 / $3,531,800 = 0.1179 = 11.79%

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