Tem Co. issued rights to its existing shareholders without consideration. A shareholder received a right to buy one share for each 20 shares held. The exercise price was in excess of par value, but less than the current market price. Retained earnings decreases when .Rights Are Issued, Rights Are Exercised
A. Yes, No
B. Yes, Yes
C. No, No
D. No, Yes

C. No, No

Explanation:

When stock rights are issued for no consideration, only a memorandum entry is made.

Therefore, when stock rights are exercised and when they are issued, the issuing company will reflect the proceeds as an increase in common stock and additional paid-in capital.

Thus, the retained earnings will not be affected when rights are issued or exercised.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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