On January 1, 2020, the stockholders’ equity section of Sarasota Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,050,000; and retained earnings $1,230,000. During the year, the following treasury stock transactions occurred. Oct. 1; Sold 8,500 treasury shares for cash at $14 per share. Restate the entry for October 1, assuming the treasury shares were sold at $11 per share. ACCOUNTS ARE:
Cash Dr. (8,500 × $11) = $93,500
Paid in capital from treasury stock Dr. ?
retained earnings Dr. ?
treasury stock Cr. (8,500 × $15) = $127,500

Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000

Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?

Why has the free enterprise system been modified to include some government intervention?