Define treasury stock and provide two reasons why a corporation would purchase treasury stock.
What will be an ideal response?
Treasury stock is a corporation's own stock that it has previously issued and later reacquired. A corporation may purchase treasury stock for the following reasons:
1. Management wants to increase net assets by buying low and selling high.
2. Management wants to support the company's stock price.
3. Management wants to avoid a takeover by an outside party by reducing the number of outstanding shares that have voting rights.
4. Management wants to reward valued employees with stock.
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Jim places a new lift truck (7-year MACRS property) into service on January 16, 2019. He pays $30,000 for the truck. This is the only business asset placed into service during this year. Jim does not desire to use the Section 179 election. What is the maximum depreciation Jim may deduct for the current year?
A. $-0- B. $4,287 C. $6,000 D. $8,574 E. $30,000
Which of the following purposes of contracting is described as an oppportunity for practitioners to ask questions about the problem and the client’s suggested approach, which then means the consultant can validate the likelihood of being able to carry out an intervention?
a. To understand the organization’s commitment to change b. To create an environment in which consultation can succeed by agreeing on mutual roles and needs c. To clarify time pressures and expectations d. To clarify how the client and consultant will interact
Interest expense on bonds payable is calculated as the:
A. Face amount times the market interest rate. B. Face amount times the stated interest rate. C. Carrying value times the stated interest rate. D. Carrying value times the market interest rate.
The horizontal boundaries imposed by work specialization and departmentalization are a part of an organization's external boundaries.
Answer the following statement true (T) or false (F)