On december 1, 2014, abel corporation exchanged 40,000 shares of its $10 par value common stock held in treasury for a used machine. the treasury shares were acquired by abel at a cost of $40 per share, and are accounted for under the cost method. on the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). as a result of this exchange, abel's total stockholders' equity will increase bya. 400,000b. 1,600,000c. 2,200,000d. 1,800,000

correct option is c. 2,200,000

Explanation:

given data

exchanged = 40,000 shares

common stock = $10

cost = $40

fair value = $55 per share

originally issued = $30 per share

to find out

total stockholders' equity will increase

solution

we will find stockholders' equity that is  increase by as given formula

Increase in total shareholder's stock equity = No. of shares × Fair value per share     1

put here value

Increase in total shareholder's stock equity =  40,000 × $55

Increase in total shareholder's stock equity = $2,200,000

so correct option is c. 2,200,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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