Bluesy Company acquired land and paid for it in full by issuing $700,000 of its 1 . percent bonds payable and 40,000 shares of its common stock, par $10 . The stock was selling at $21 per share and the bonds were trading at 102 . What amount should Bluesy record as the cost of the land?
a. $1,100,000
b. $1,540,000
c. $1,554,000
d. $1,604,000
C
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Which trade theory predicts that countries with similar preferences and technologies but dissimilar factor endowments will experience potential gains from trade?
a. specific-factors theory b. Stolper-Samuelson theorem c. Linder's theory d. Heckscher-Ohlin theory
Which of the following approaches to budgeting involves using computerized decision support systems (DSSs) such as ADBUDG to structure budget decisions systematically?
A) affordability B) experimentation C) decision calculus D) competitive parity
A bond with a face value of $1,000 has a current price quote of 98.00 . This bond is selling for
a. $1080.00. b. $1030.00. c. $980.00. d. $880.00.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1. Sold machinery for $9,000 cash. 2. Purchased a building for $80,000 cash. 3. Issued $70,000 worth of stock to acquire an airplane. 4. Converted long-term bonds by issuing $100,000 worth of stock. 5. Declared and paid a $10,000 cash dividend. Transaction 2 would be found on the
statement of cash flows in the A) cash flows from operating activities section. B) cash flows from financing activities section. C) cash flows from investing activities section. D) noncash investing and financing transactions section.