In Year 1, Stock to the Hand, Inc., issued 100,000 shares of the 1,500,000 shares of $0.60 par value common stock it is allowed to sell. The total received from issuing its common stock is $500,000. Stock to the Hand bought back 5,000 shares of its stock at a cost of $7 each. The entry to record the purchase of its stock includes a ______
a. credit Cash $35,000
b. debit Cash $35,000
c. credit Common Stock $35,000
d. debit Treasury Stock $35,000
e. credit Treasury Stock $35,000
f. debit Common Stock $35,000
g. debit Paid-in Capital in Excess of Par $35,000
Ans:
a. credit Cash $35,000
d. debit Treasury Stock $35,000
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Fill in the blank(s) with the appropriate word(s).
Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:Periods12%10.892921.690132.401843.0373 What is the net present value of the machine?
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