On June 1, 2019, 4,000 shares of $10 par value common stock are issued in exchange for new equipment. The equipment has a fair market value of $116,000. In recording this transaction, what amount should be allocated to APIC - CS?

Answers

Answer 1

Answer:

$76,000

Explanation:

Equipment Fair Value = $116,000. Thus, total value of shares issued is same.

No of common shares issued = 4,000

Price per share issued = 116,000/4000 = $29/shares

Par value per share = $10

Total Par Value of Shares issued = 4,000*$10 = $40,000

Amount in excess of par per share = $29 - $10 = $19

Total Amount to be credited in APIC-CS = $19 * 4000 = $76,000. Thus, amount to be allocated to Additional Paid In Capital-CS = $76,000.


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Q. Keeping in mind the rural area to be targeted, being a marketing manager of xyz Co. Which proactive marketing would you use to serve the target audience? Justify

Answers

Answer: Use of Radio, Television, Billboards, magazine and newspaper

Explanation:

Proactive marketing marketing or advertising is advertising in areas or location that your product or service in the places where people are not already looking or asking. Example of proactive marketing strategies to use are Television, magazine, radio commercials, billboards. Radio, Television and billboards will travel faster, because they can see the billboards and Television, also majority use radio

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