45.

Thompson Co. has 75,000 shares of $4 par value stock outstanding (total legal capital of $300,000). If Thompson splits the stock 2-for-1, what will be the par value of each share after the split?

		a. $2
		b. $4
		c. $8
		d. $16

46.

Burke Company sold 5,000 widgets this month. The widgets have a warranty for free replacement. In the past, an average of 10% of widgets sold were eventually replaced under the warranty. The cost of producing a widget is $25. This month, 420 widgets were actually replaced under the warranty. How much should Burke Company record as Warranty Expense for the current month?

		a. $1,500
		b. $1,050
		c. $12,500
		d. $10,500

47.

Wilson Co. sold $500 of goods to Donner Co. with terms of 2/10, n/30. If Wilson receives payment for the goods from Donner within 10 days, Wilson will record a

		a. debit to Accounts Receivable for $500.
		b. credit to Cash for $490.
		c. debit to Sales Discounts for $10.
		d. credit to Sales Discounts for $10.

48.

Edwards Co. purchased a car wash for $400,000. The appraised value for the land was $50,000, while the building was appraised at $250,000, and the equipment appraised for $200,000. How much of the amount paid for the car wash should be charged to the building account?

		a. $250,000
		b. $150,000
		c. $200,000
		d. $225,000