Porter Corporation purchases 60 percent of the voting stock of Ritz Corporation for $48,000 . Ritz has common stock of $25,000 and retained earnings of $35,000 . Based solely on the above facts, the consolidated balance sheet would include
a. goodwill of $4,200.
b. investment in Ritz of $48,000.
c. minority interest of $36,000.
d. minority interest of $24,000.
D
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Connor Martin Corporation's balance sheet showed the following amounts: Current Liabilities, $10,000? Bonds Payable, $3,000? Lease Obligations, $4,000? and Notes Payable, $600 . Total stockholders' equity was $12,000 . The debt-to-equity ratio is:
a. 0.83. b. 1.47. c. 1.42. d. 0.63.
Which of the following share option plans would involve the creation of a liability account over the life of the plan?
A) all share option plans B) fixed compensatory share option plans C) performance-based compensatory share option plans D) share option plans with stock appreciation rights
A company borrowed $21,000 by signing a 90-day promissory note at 12%. The total interest due on the maturity date is: (Use 360 days a year.)
A. $2520.00 B. $630.00 C. $945.00 D. $52.50 E. $315.00
Heidi wishes to deposit an amount into her savings account that will enable her to withdraw $800 per year for the next four years. She should deposit $800, multiplied by the
a. present value of a single sum factor. b. present value of an ordinary annuity factor. c. future value of a single sum factor. d. future value of an ordinary annuity factor.