The equity section of allen corporation’s statement of financial position is presented below. preferred stock ($100 par value) $ 8,000,000 common stock ($5 par value) 5,000,000 paid-in capital in excess of par 12,000,000 retained earnings 6,000,000 total equity $31,000,000 the common shareholders of allen corporation have preemptive rights. if allen corporation issues 200,000 additional shares of common stock at $6 per share, a current holder of 10,000 shares of allen corporation’s common stock must be given the option to buy a) 2,000 additional shares. b) 500 additional shares. c) 1,667 additional shares. d) 2,400 additional shares.

The following balance sheet for the los gatos corporation was prepared by a recently hired accountant. in reviewing the statement you notice several errors. los gatos corporation balance sheet at december 31, 2018 assets cash $ 44,000 accounts receivable 86,000 inventories 57,000 machinery (net) 122,000 franchise (net) 32,000 total assets $ 341,000 liabilities and shareholders' equity accounts payable $ 54,000 allowance for uncollectible accounts 7,000 note payable 59,000 bonds payable 112,000 shareholders' equity 109,000 total liabilities and shareholders' equity $ 341,000 additional information: cash includes a $22,000 restricted amount to be used for repayment of the bonds payable in 2022. the cost of the machinery is $194,000. accounts receivable includes a $22,000 note receivable from a customer due in 2021. the note payable includes accrued interest of $7,000. principal and interest are both due on february 1, 2019. the company began operations in 2013. income less dividends since inception of the company totals $37,000. 52,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized. required: prepare a corrected, classified balance sheet. (amounts to be deducted should be indicated by a minus sign.)

What two things do you consider when evaluating the time value of money

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations