A business owner shows you his balance sheet and points out that the total amount of equity is $4,567,000. He says that is the price a buyer should pay for the business. Do you agree? Explain.
Answer to relevant QuestionsHow are preferred shares "preferred"? Are dividends on preferred shares guaranteed? If the preferred shares have a cumulative feature, are the dividends guaranteed? Explain.Why do you think property dividends are accounted for at their market value instead of their carrying amount? Why are property dividends relatively uncommon? What is the impact on earnings per share if a company buys back some of its shares from investors? What is the economic impact on the company? Determine the missing amounts in 2015 through 2018 for the shaded areas in the tablebelow:What is the required journal entry for each of the following transactions?a. 25,000 shares of no par value shares are issued for $30 per share.b. 25,000 shares of $0.10 par value shares are issued for $30 per share.c. 25,000 ...
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