Mandarin company is authorized to issue 1,250,000 shares of $15 par value common stock. by november 15, 2019, the company had issued 60,000 shares at $36 per share. on november 15, 2019, the company declared a 50% stock dividend when the market price was $45 per share. what amount would be debited to the stock dividends account as a result of the stock dividend? select one: a. 1,350,000 b. 450,000 c. 1,875,000 d. 900,000

a. 1,350,000

Explanation:

The computation of the amount which is debited to the stock dividend account is shown below:

= Issued Number of shares × stock dividend percentage × market price

= 60,000 shares × 50% × $45

= $1,350,000

Simply we multiplied the issued number of shares with the stock dividend percentage and the market price so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.