Prior to september 30, a company has never had any treasury stock transactions. a company repurchased 1,000 shares of its $2 par common stock on september 30 for $20 per share. on october 2, it reissued 400 of these shares at $21 per share. on october 12, it reissued the remaining 600 shares at $19 per share. the journal entry to record the purchase of the shares on september 30 would be: a) debit cash, $8,400, credit treasury stock, $8,000, credit paid-in capital in excess of par value, common stock, $400.b) debit treasury stock, $20,000; credit cash, $20,000.c) debit cash, $20,000; credit common stock, $2,000, credit paid-in capital in excess of par value, common stock, $18,000.d) debit cash, $20,000; credit treasury stock, $20,000.e) debit common stock, $20,000; credit cash, $20,000.

Answer the following questions with true or false and provide a brief explanation (2- 3 sentences) a) economies of scale in production give rise to multi-product firms. b) ace hardware corporation is an example of economies of scale in production.

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?