Paid-in capital-excess of par increase for transaction

Assignment Help Accounting Basics
Reference no: EM13149058

Montgomery & Co., a well established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock. Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's Paid-in capital-excess of par increase for this transaction?

A. $345,000.

B. $295,000.

C. $350,000.

D. $300,000.

Reference no: EM13149058

Questions Cloud

Show analytically that equilibrium price under cournot : Show analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price.
Change in irr ranking of two projects : Explain why the short-term project might be higher ranked under the NPV criterion if the cost of capital is high whereas the long-term project might be deemed better if the cost of capital is low. Would changes in the cost of capital ever cause a ..
Find probability that firm will break previous export record : if they expect to satisfy about 80 orders in the next financial quarter, what is the probability that they will break their previous export record?
Compounds are always composed of two or more elements : Compounds are always composed of two or more elements. Atoms of different elements are different. Isotopes have the same number of protons but a different number of neutrons.
Paid-in capital-excess of par increase for transaction : Montgomery & Co., a well established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock. Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250..
Estimate of cross-price elasticity of demand for gasoline : Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..
Timulated economic growth : Give your opinion on whether or not the development of the International Space Station stimulated economic growth. Justify your response.
Probability that selected student is a liberal arts major : A student is selected at random to represent the school at a conference. The probability that the selected student is a liberal arts major is what?
Discuss the advantages and disadvantages of hydrogenation : Describe the process of fat hydrogenation and discuss the advantages and disadvantages of hydrogenation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the equivalent units of production

What are the equivalent units of production with respect to direct labor at the end of the month, assuming the weighted average method is utilized?

  Information on journal entries to record business

On Jan 1, 2002, Frost Company acquired all of TKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Frost shares were selling at $22 per share. Historical cost and fair value balance shee..

  Amortization and depletion entries

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:

  Recognizing the amount of revenue

Payment terms were: 50% due on October 1, 1996, 25% due on first delivery and 25% due on the second delivery. What amount of revenue should Acme recognize from this sale during 1996?

  Prepare adjusting entries of welch rental agency

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.

  Privilege against self-incrimination

Paul-Weiss, which had received copies of these documents from its client, refused to produce them, arguing that it was exempted from doing so by Doe's privilege against self-incrimination. Was Paul-Weiss correct in its assertion?

  How will the character of the income or loss be determined

The character of any income or loss will be ordinary if the contributed property is sold by the partnership within five years after the date of contribution regardless of the character of the asset in the hands of the partnership.

  Is it correct to discount the loan at the effective interest

1. You acquire the outstanding loan (note) of Shepard Company, who is having financial difficulty. Because of the financial difficulty, Shepard Company's credit rating has been downgraded and you acquire the note at a discount.

  Finding components of mixed overhead costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility.

  Total manufacturing cost per unit

The following department data are available: Total materials costs $180,000 Equivalent units of materials 60,000 Total conversion costs $105,000 Equivalent units of conversion costs 30,000 What is the total manufacturing cost per unit?

  Potomoc depreciation expense

Potomac LLC purchased an automobile for $30,000 on August 5th of 2010. What is Potomoc's depreciation expense for 2010?

  Prepare a contribution margin format income statement

Annual common fixed expenses for the company totals $100,000. During the year Greenville Goober sold 35,000 units of Product A and 20,000 units of Product B.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd