Q&A Hero

Q: Corporations are responsible for approximately what percentage of total business revenues?A) 19 percent B) 50 percent C) 72 percent D) 83 percent

Q: Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation. The separate net incomes (excluding investment income) of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000, respectively. All of the investments were made at times when the investee's book values were equal to their fair values. There were no cost/book value differentials for each investment.Required:Determine the controlling interest share of consolidated net income and noncontrolling interest shares for Packer Corporation and Subsidiaries for the current year.

Q: The __________ system enables exchange members to send orders directly to a specialist over computer lines. A. FAX B. Direct Plus C. NASDAQ D. SUPERDOT

Q: Suppose that indifference curve I1 lies to the right of indifference curve I2. We can conclude thatA) some, but not all, points on indifference curve I1 will correspond to higher utility than points along indifference curve I2.B) some, but not all, points on indifference curve I1 will correspond to lower utility than points along indifference curve I2.C) all points along indifference curve I 1 will correspond to higher utility than points along indifference curve I2.D) all points along indifference curve I 1 will correspond to lower utility than points along indifference curve I2.

Q: Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair value/book value differentials associated with each investment. Separate net incomes (excluding investment income) of the affiliated companies for 2011 are:Paik: $600,000 which includes $60,000 unrealized losses on inventory items sold to BenAcdol: $360,000Ben: $340,000 which includes $100,000 unrealized profit on land sold to AcdolRequired:Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2011.

Q: The inside quotes on a limit order book can be found ______. A. at the top of the list B. at the bottom of the list C. by taking the averages of the bid and ask prices on the list D. only by direct contact with the specialist who maintains the book

Q: QuantityPer WeekTotal UtilityAmyRobertDavidMichelle0000015.01006006029.91901200130314.72701800220419.43402400310524.04003000425628.54503600575732.94904200900837.252048001275941.451054001770Refer to the above table. The one who likes the good the most isA) David.B) Michelle.C) Robert.D) uncertain since we cannot compare utility across people.

Q: The ______________ is the most important dealer market in the United States, and the ______________ is the most important auction market. A. NYSE; NASDAQ B. NASDAQ; NYSE C. CME; OTC D. AMEX; NYSE

Q: Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2010 for $700,000 when Abdoo's stockholders' equity consisted of $600,000 of Capital Stock and $200,000 of Retained Earnings.Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2010 for $180,000 when Bach had Capital Stock of $200,000 and Retained Earnings of $50,000. On January 1, 2011, Abdoo acquired a 70% interest in Cabo Corporation for $270,000 when Cabo had Capital Stock of $250,000 and Retained Earnings of $100,000.No change in outstanding stock of any of the affiliated companies has occurred since the investments were made. All cost-book value differentials are goodwill. There are no fair value/book value differentials. The stockholders' equity section of the separate balance sheets of Abdoo, Bach, and Cabo at December 31, 2011 are as follows:Abdoo Bach CaboCapital Stock $600,000 $200,000 $250,000Retained Earnings 280,000 140,000 130,000Total stockholders' equity $880,000 $340,000 $380,000Required:1.Compute the amount at which goodwill should be shown in the consolidated balance sheet of Pacini Corporation and Subsidiaries at December 31, 2011.2.Pacini and Abdoo have applied the equity method correctly. Determine the balances of the three investment accounts at December 31, 2011.

Q: When two goods are complements,A) the demands for both goods will be elastic. B) cross price elasticity of demand will be 0.C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.

Q: In a __________ underwriting arrangement, the underwriter assumes the full risk that shares may not be sold to the public at the stipulated offering price. A. best-efforts B. firm-commitment C. private placement D. none of these options

Q: Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2011 are:Paice $300,000Accardi 160,000Badger 120,000Required:Calculate controlling interest share of consolidated net income and noncontrolling interest shares for Paice Corporation and Subsidiaries for 2011.

Q: Absolute price elasticities are calculated for four commodities, and the values are: 0.009; 1.0; 3.3; and 4.1. Which indicates the most price -responsive situation?A) 0.009 B) 1.0 C) 3.3 D) 4.1

Q: Specialists try to maintain a narrow bid-ask spread because: I. If the spread is too large, they will not participate in as many trades, losing commission income. II. The exchange requires specialists to maintain price continuity. III. Specialists are nonprofit entities designed to facilitate market transactions rather than make a profit. A. I only B. I and II only C. II and III only D. I, II, and III

Q: On January 1, 2012, Pauline Company acquired 90% of Stephen Company at a cost of $90,000. On January 1, 2012, Stephen Company acquired 10% of Pauline Company at a cost of $10,000.On January 1, 2012, the following data is available:Stephen Company Pauline CompanyCommon Stock $50,000 Common Stock $50,000Retained Earnings $50,000 Retained Earnings $50,000Assets fair value $100,000 Assets fair value $100,000Assets book value $100,000 Assets book value $100,000Liabilities $0 Liabilities $0At December 31, 2012, the following data is available:January 1, 2012 December 31, 2012On Pauline Books:Investment in Stephen $90,000 $105,000On Stephen Books:Investment in Pauline $10,000 $10,000Assuming the treasury stock method is used, what elimination entry is needed for the Investment in Pauline at December 31, 2012?A)Retained earnings5,000Common stock5,000Investment in Pauline10,000B)Investment in Stephen10,000Investment in Pauline10,000C)Income from Pauline10,000Investment in Pauline10,000D)Treasury stock10,000Investment in Pauline10,000

Q: Quantity of Clean Air (%)Marginal Cost ($)Marginal Benefit ($)010,000100,0002525,00050,0005037,50037,5007575,00025,000100Infinite0The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 25 percent,A) the quantity of polluted air is 25 percent.B) the marginal benefit of clean air exceeds the marginal cost.C) the marginal benefit of clean air is less than the marginal cost.D) the quantity of clean air is optimal.

Q: According to multiple studies by Ritter, initial public offerings tend to exhibit __________ performance initially and __________ performance over the long term. A. bad; good B. bad; bad C. good; good D. good; bad

Q: Raymond Company owns 90% of Rachel Company. Rachel Company owns 10% of Raymond Company. The treasury stock method is used. On the books of Rachel Company, we maintain the Investment in Raymond using the ________ method. The ending balance in Investment in Raymond is ________ stockholders' equity in the consolidated balance sheet.A) equity; deducted fromB) cost; deducted fromC) treasury stock; deducted fromD) conventional; added to

Q: The federal government began officially measuring poverty in theA) 1860s. B) 1900s. C) 1930s. D) 1960s.

Q: What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option with an exercise price of $130 if Apple closed on the expiration date at $120? Assume the option premium was $3.00.A. $0B. $3.00 gainC. $3.00 lossD. $7.00 gain

Q: When mutually-held stock involves subsidiaries holding the stock of each other, the ________ method is not used.A) equityB) costC) conventionalD) treasury stock

Q: At any quantity, the marginal factor cost is alwaysA) parallel to the marginal revenue product.B) below the labor supply curve. C) above the labor supply curve. D) above the labor demand curve.

Q: Which of the following reforms were not included in 2014 regulations regarding money market funds? A. Institutional funds will "float" the prices of their shares. B. Funds can limit redemptions or impose a 2% fee if assets fall by more than 30%. C. increased disclosure of assets' values and liquidity D. All of the options were included.

Q: Use the following information to answer the question(s) below.Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2011 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.Symbols used:P = Income of Paiva on a consolidated basisA = Income of Ackroyd on a consolidated basisB = Income of Bailey on a consolidated basisBailey's noncontrolling interest share for 2011 isA) $7,609.B) $8,044.C) $15,652.D) $23,696.

Q: The Knights of Labor wasA) a craft union that tried to restrict immigration into the United States.B) an organization of skilled labor that tried to increase technical training after the German model.C) an organization of both unskilled and skilled workers that pushed for an eight -hour workday and equal pay for men and women.D) an industrial union composed of military personnel that tried to improve military life.

Q: Several large banks manipulated the reported rates on which key money market rate? A. federal funds rate B. LIBOR C. bankers' acceptances D. brokers' calls rate

Q: The market demand for labor will beA) insensitive to the wage rate in the short run.B) downward sloping.C) the inverse of the market demand for output.D) perfectly inelastic.

Q: LIBOR is a key reference rate in the money markets. Many ______ of dollars of loans and derivative assets are tied to it. A. thousands B. millions C. billions D. trillions

Q: The U.S. Justice Department prosecuted Microsoft under the terms of A) the Sherman Act. B) the Kefauver amendment. C) the 1933 amendment to the Federal Trade Commission Act. D) none of the above.

Q: The brokers' call rate represents A. the rate the broker charges an investor on a margin account. B. the rate the broker pays its bank on borrowed funds. C. the return earned by the broker on a margin account. D. the return earned by the investor on a margin account .

Q: Use the following information to answer the question(s) below.Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.The net income reported for Pahm Corporation for the current year isA) $504,800.B) $516,800.C) $545,200.D) $557,200.

Q: Game theory is used to explain the pricing behavior ofA) monopolies. B) perfect competition. C) monopolistic competition. D) oligopolies.

Q: Which of the following mortgage scenarios will benefit the homeowner the most? A. adjustable rate mortgage when interest rate increases. B. fixed rate mortgage when interest rates falls. C. fixed rate mortgage when interest rate rises. D. None of these options, as the banker's interest will always be protected.

Q: The joining of firms that are producing or selling a similar product isA) a conglomerate merger. B) a horizontal merger.C) a vertical merger. D) always an illegal merger.

Q: A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the 1-day rate of return on the index? A. 5.78% B. 4.35% C. 6.16% D. 7.42%

Q: In the above figure, total revenue for this profit-maximizing monopolistically competitive firm isA) $50,000. B) $91,000. C) $96,000. D) $100,000.

Q: A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58 today, what is the new index value? A. 960 B. 970 C. 975 D. 985

Q: If a monopolist produces to a point at which marginal revenue is less than marginal cost thenA) profits are being maximized.B) profits will always be negative.C) the incremental cost of producing the last unit exceeds the incremental revenue.D) the incremental cost of producing the last unit is less than the incremental revenue.

Q: The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index? A. 5.00 B. 4.85 C. 4.50 D. 4.75

Q: Use the following information to answer the question(s) below.Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.The amount of noncontrolling interest share for the current year isA) $69,000.B) $85,000.C) $95,000.D) $99,000.

Q: A tax free municipal bond provides a yield of 2.34%. What is the equivalent taxable yield on the bond given a 28% tax bracket? A. 2.34% B. 2.68% C. 3.25% D. 4.92%

Q: In the above figure, the long -run equilibrium price and output areA) $10 and 10. B) $10 and 12. C) $7 and 8. D) $8 and 10.

Q: For a firm in a perfectly competitive industry, which of the following is TRUE?A) MR = P B) MR < P C) AVC = ATC D) MR > P

Q: An index computed from a simple average of returns is a/an _____. A. equal weighted index B. value weighted index C. price weighted index D. share weighted index

Q: Paglia Corporation owns 80% of Aburn Corporation and has separate net income of $200,000 for 2010. Aburn Corporation has separate net income of $100,000 and owns 70% of the outstanding stock of Badley Corporation. Badley Corporation has separate net income of $80,000. (Separate net incomes exclude investment income.) The cost of each investment was equal to book value and fair value. The controlling interest share of consolidated net income for 2010 isA) $324,800.B) $328,800.C) $344,800.D) $344,800.

Q: Using the above table, the TVC, the TC, and the MC when output is 4 units areA) $67, $72, and $22, respectively. B) $16.75, $21.75, and $22, respectively. C) $16.75, $21.75, and $30, respectively. D) $67, $62, and $22, respectively.

Q: Pablo Corporation acquired 60% of Abagia Corporation on January 1, 2010, at a cost of $20,000 in excess of book value. Also, on July 1, 2010, Pablo acquired 60% of Babin Corporation at book value. On January 1, 2011, Abagia acquired a 20% interest in Babin at a cost of $10,000 in excess of book value. The excess purchase costs paid by Pablo and Abagia were attributed to goodwill.On July 1, 2011, Pablo sold land with a book value of $20,000 to Abagia for $40,000. The $20,000 unrealized gain is included in Pablo's separate income. Separate net incomes for the affiliated companies (excluding investment income) for 2011 are:Pablo $250,000Abagia 70,000Babin 100,000Controlling interest share of consolidated net income for 2011 isA) $304,000.B) $324,000.C) $344,000.D) $364,000.

Q: What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%? A. 6.48% B. 7.25% C. 8.02% D. 9%

Q: Which of the following is TRUE about the long run?A) All resources are variable. B) All resources are fixed. C) At least one resource is fixed. D) None of the above.

Q: Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2010, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2010. Net income(loss) of the three companies (excluding investment income) for 2010 are:Pabari Corporation $180,000Alders Corporation 72,000Babao Corporation (30,000)Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2010 areA) $211,200 and ($1,200).B) $211,200 and ($3,600).C) $213,600 and ($1,200).D) $213,600 and ($3,600).

Q: A legal entity that may conduct business in its own name just as an individual does is a(n) A) corporation. B) entrepreneur.C) proprietorship. D) partnership.

Q: All but which one of the following indices is value weighted? A. NASDAQ Composite B. S&P 500 C. Wilshire 5000 D. DJIA

Q: Use the following information to answer the question(s) below.Paint Corporation owns 82% of Achille Corporation and Achille Corporation owns 80% of Badrack Corporation. For the current year, the separate net incomes (excluding investment income) of Paint, Achille, and Badrack are $120,000, $100,000, and $50,000, respectively. The cost of each investment was equal to the book value of the investment, which was also equal to the fair value.Controlling interest share of consolidated net income for Paint Corporation and Subsidiaries is:A) $234,800.B) $244,800.C) $260,000.D) $270,000.

Q: A corporation in a 34% tax bracket invests in the preferred stock of another company and earns a 6% pretax rate of return. An individual investor in a 15% tax bracket invests in the same preferred stock and earns the same pretax return. The after-tax return to the corporation is _______, and the after-tax return to the individual investor is _______. A. 3.96%; 5.1% B. 5.39%; 5.1% C. 6%; 6% D.

Q: Suppose that indifference curve I1 lies to the left of indifference curve I2. We can conclude thatA) some, but not all, points on indifference curve I1 will correspond to higher utility than points along indifference curve I2.B) some, but not all, points on indifference curve I1 will correspond to lower utility than points along indifference curve I2.C) all points along indifference curve I 1 will correspond to higher utility than points along indifference curve I2.D) all points along indifference curve I 1 will correspond to lower utility than points along indifference curve I2.

Q: In a ___________ index, changes in the value of the stock with the greatest market value will move the index value the most, everything else equal. A. value-weighted index B. equally weighted index C. price-weighted index D. bond price index

Q: QuantityPer WeekTotal UtilityAmyRobertDavidMichelle0000015.01006006029.91901200130314.72701800220419.43402400310524.04003000425628.54503600575732.94904200900837.252048001275941.451054001770Refer to the above table. Michelleʹs utility schedule is characterized byA) diminishing marginal utility. B) increasing marginal utility.C) constant marginal utility. D) constant total utility.

Q: You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wanted to construct an index to track your portfolio performance, your best match for your portfolio would be to construct ______. A. a value-weighted index B. an equally weighted index C. a price-weighted index D. a bond price index

Q: When two goods are substitutes, A) the demands for both goods will be inelastic. B) cross price elasticity of demand will be 0. C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.

Q: Page Corporation acquired a 60% interest in Ace Corporation at a price $40,000 in excess of book value and fair value on January 1, 2010. On the same date, Ace acquired a 70% interest in Bader Corporation at a price $30,000 in excess of book value and fair value. The excess purchase cost paid by Page and Ace was attributed to goodwill. Separate net incomes (excluding investment income) for the three affiliates for 2010 are as follows: Page, $500,000, Ace, $300,000, and Bader, $400,000.Page's controlling interest share of consolidated net income for 2010 isA) $808,000.B) $848,000.C) $920,000.D) $960,000.

Q: The rate of interest on short-term loans among financial institutions is _____. A. bankers' acceptances B. brokers' calls C. federal funds D. LIBOR

Q: A value of the absolute price elasticity of demand equal to 0.5 indicates that A) a 0.5% decrease in price leads to a 1% increase in quantity demanded. B) a 2% decrease in price leads to a 25% increase in quantity demanded. C) a 1% increase in price leads to a 5% decrease in quantity demanded.D) a 1% increase in price leads to a 0.5% decrease in quantity demanded.

Q: 1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the following is correct?A) Bajo should not be consolidated because noncontrolling interests hold 52%.B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure.C) Pallet has 8% indirect ownership of Bajo.D) Pallet has 80% indirect ownership of Bajo.

Q: Which of the following is not considered a money market investment? A. bankers' acceptance B. eurodollar C. repurchase agreement D. Treasury note

Q: The optimal quantity of pollution in the above figureA) is defined as the level where the marginal benefit is at a maximum.B) is where the optimal degree of air cleanliness is 100 percent.C) is the level of pollution at which the marginal benefit equals the marginal cost.D) cannot be determined.

Q: Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million, and $150 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value? A. 300 B. 39 C. 43 D. 30

Q: The official definition of poverty isA) exactly the 12 percent of U.S. residents with the lowest incomes.B) exactly the 20 percent of U.S. residents with the lowest incomes. C) an absolute measure.D) a relative measure.

Q:

Q: A stock quote indicates a stock price of $60 and a dividend yield of 3%. The latest quarterly dividend received by stock investors must have been ______ per share. A. $0.55 B. $1.80 C. $0.45 D. $1.25

Q: On December 31, 2011, Maria Corporation has the following stockholders' equity:Common stock, $10 par $100,000Additional paid-in capital 20,000Retained earnings 80,000Total stockholders' equity $200,000On January 1, 2012, Maria Corporation declared and issued a 10% stock dividend when the market price per share was $50.On January 2, 2012, James Corporation purchased an 80% interest in Maria Corporation for $160,000 from the open market. On January 2, 2012, the fair value of Maria's individual assets and liabilities was equal to book value.Required:Prepare the journal entry(ies) for Maria Corporation on January 1, 2012.2. Prepare the journal entry(ies) for James Corporation on January 2, 2012.3. Prepare the elimination entry(ies) for consolidating work papers on January 2, 2012.4. Prepare the elimination entry(ies) for consolidating work papers on January 2, 2012 if the 10% stock dividend is not declared and issued on January 1, 2012.

Q: Quantity of LaborHourly Wage RateTotal Marginal Wage Bill Factor Cost0-- -1$10 212 314 416 518 620 In the above table, if the marginal revenue product is $16, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?A) 5; $18 B) 5; $16 C) 4; $16D) 6; $30

Q: On December 31, 2011, Lorna Corporation has the following information available:Common stock, $10 par $200,000Additional paid-in capital 60,000Retained earnings 40,000Total stockholders' equity $300,000On December 31, 2011, Gerald Corporation buys an 80% interest in Lorna Corporation for $240,000. On December 31, 2011, the fair value of Lorna's assets and liabilities are equal to the respective book values.Required:1.On January 1, 2012, Lorna Corporation buys 500 shares of common stock from noncontrolling stockholders at $20 per share. Prepare the journal entry for Gerald Corporation on January 1, 2012. Use four decimal places for the ownership percentage.2.On January 1, 2012, Lorna Corporation buys 500 shares of common stock from noncontrolling stockholders at $30 per share. Prepare the journal entry for Gerald Corporation on January 1, 2012. Use four decimal places for the ownership percentage.3. On January 1, 2012, Lorna Corporation buys 500 shares of common stock from noncontrolling stockholders at $10 per share. Prepare the journal entry for Gerald Corporation on January 1, 2012. Use four decimal places for the ownership percentage.

Q: What would you expect to have happened to the spread between yields on commercial paper and Treasury bills immediately after September 11, 2001? A. no change, as both yields will remain the same B. increase, as the spread usually increases in response to a crisis C. decrease, as the spread usually decreases in response to a crisis D. no change, as both yields will move in the same direction

Q: Bargaining between the management of a company and the management of a union isA) a closed shop. B) a bilateral monopoly.C) a craft union. D) collective bargaining.

Q: On December 31, 2011, Dixie Corporation has the following information available:Common stock, $10 par $200,000Additional paid-in capital 60,000Retained earnings 40,000Total stockholders' equity $300,000On December 31, 2011, Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000. On December 31, 2011, the fair value of Dixie's assets and liabilities are equal to the respective book values.Required:1.On January 1, 2012, Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Grimsled Corporation on January 1, 2012.2.On January 1, 2012, Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Grimsled Corporation on January 1, 2012.3.On January 1, 2012, Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $10 per share. Prepare the journal entry for Grimsled Corporation on January 1, 2012.

Q: A typical bond price quote includes all but which one of the following? A. coupon B. closing bond price C. yield to maturity D. dividend yield

Q: What is marginal factor cost? How is it related to the supply curve of an input?

Q: If you thought prices of stock would be rising over the next few months, you might want to __________________ on the stock. A. purchase a call option B. purchase a put option C. sell a futures contract D. place a short-sale order

Q: On December 31, 2011, Pat Corporation has the following information available:Common stock, $10 par $100,000Additional paid-in capital 60,000Retained earnings 40,000Total stockholders' equity $200,000On December 31, 2011, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2011, the fair value of Pat's assets and liabilities are equal to the respective book values. Use four decimal places for the ownership percentage.Required:1.On January 1, 2012, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Anne Corporation on January 1, 2012.2.On January 1, 2012, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Anne Corporation on January 1, 2012.3.On January 1, 2012, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share. Prepare the journal entry for Anne Corporation on January 1, 2012.

Q: One weakness of the Sherman Act is that A) it fails to clearly define restraint of trade. B) it applies only to foreign monopolies. C) it applies only to the steel and railroad industries. D) none of the above