What are the different bases for stock valuation when assets other than cash are received for issued
Question:
What are the different bases for stock valuation when assets other than cash are received for issued shares of stock?
Step by Step Answer:
The general rule to be applied when stock is issued for services or pro...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Accounting questions
-
What are the different bases for share valuation when assets other than cash are received for issued shares?
-
What are the different mechanisms for transferring energy to or from a control volume? Discuss.
-
What are the different methods for compensating employees? Discuss which methods you think would be best for compensating a sales associate, store manager, and buyer.
-
You want to short a 6-month forward contract on a stock. You contacted your bank and were offered a forward price of $39.85 [Note: This forward price is available only to customers who want to take a...
-
Swift Ellis, Inc., manufactures running shoes. The following graph illustrates the combination of capital and labor (point A) that minimizes the firm's cost of producing 5,000 pairs of shoes. Suppose...
-
Dave uses the second floor of a building for his residence and the first floor for his business. The uninsured building is destroyed by fire. Are the tax consequences the same for each part of the...
-
What are the elements of a communication mix?
-
Accounting records for Thames Corporation yield the following data for the year ended March 31, 2012: Inventory, March 31, 2011 .........................................................................
-
Prepare a comparative balance sheet for 20Y2 and 2041, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and...
-
Using slide #22 of the service line marketing for success PowerPoint presentation as a model (see Week 3 Multimedia), choose an early detection screening (e.g., mammogram, hearing or vision, or...
-
Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.
-
Explain how underwriting costs and accounting and legal fees associated with the issuance of stock should be recorded.
-
Workers at the Dial plant in Iowa needed to be able to lift about 35 pounds of sausage at a time to a height between 30 and 60 inches. Doing this over and over meant injuries to workers, so the...
-
The four forces, 400, 500, 600 and 700N are acting along the edges of a 0.8m cube as shown. Represent the resultant of these forces by 1) A force Fr through the point A 2) A couple moment Mr (give...
-
Problem 1. What is the degree of freedom of the following mechanism? Sliding joint Sliding joint
-
PILAR Manufacturing Co. has three producing departments (P, I, & L), and two service departments (A&R). The total estimated departmental expenses for 2021 before distribution of service department...
-
1. A volleyball player serves the ball at point A with an initial velocity vo at an angle of 20 to the horizontal. (a) Determine the minimum velocity of the serve such that the ball will just clear...
-
9.50. Dipping low ** A top with I = 3/3 floats in outer space and initially spins around its x3 axis with angular speed w3. You apply a strike at the bottom point, directed into the page, as shown in...
-
Rochester Enterprises purchased 500 shares of Newark Corporation for $15 per share on June 15, 1996, when Newark had approximately 10,000 equity shares outstanding. Rochester held the investment...
-
D Which of the following is considered part of the Controlling activity of managerial accounting? O Choosing to purchase raw materials from one supplier versus another O Choosing the allocation base...
-
Change the NOR gate of Figure 3-24 to a NAND gate, and change the NAND to a NOR. What is the new expression for x? Figure 3-24 D 0 B A C + D 1 0 1 x = AB(C + D)
-
Explain how estimation of service lives can result in unrealistically high carrying values for fixed assets.
-
Workman Company purchased a machine on January 2, 2012, for $800,000. The machine has an estimated useful life of 5 years and a salvage value of $100,000. Depreciation was computed by the 150%...
-
Silverman Company purchased machinery for $162,000 on January 1, 2012. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units,...
-
The rate of return on Cherry Jalopies, Inc., stock over the last five years was 14 percent, 11 percent, 4 percent, 3 percent, and 7 percent. What is the geometric return for Cherry Jalopies, Inc.?
-
U.S. GAAP specifies all of the following characteristics of variable interest entities except: A. Equity holders hold less than 5% of the entitys voting stock. B. Equity holders do not have voting...
-
Rank the following three stocks by their risk-return relationship, best to worst. Night Ryder has an average return of 10 percent and standard deviation of 27 percent. The average return and standard...
Study smarter with the SolutionInn App