Caramel corporation has 5,000 shares of stock outstanding. in a qualifying stock redemption, caramel distributes $145,000 in exchange for 1,000 of its shares. at the time of the redemption, caramel has paid-in capital of $800,000 and e & p of $300,000. calculate the reduction to caramel’s e & p as a result of the distribution.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)

Acompany sells garden hoses and uses the perpetual inventory system to account for its merchandise. the beginning balance of the inventory and its transactions during september were as follows:

Which one of the following is not a typical current liability? a. interest payable b. current maturities of long-term debt c. salaries payable d. mortgages payable