Norton, Inc

question 267

Short Answer

Norton, Inc. has 10,000 shares of 5%, $100 par value, noncumulative preference shares and 100,000 ordinary shares with a $1 par value outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid a $40,000 dividend in 2013. In 2014, $110,000 of dividends are declared and paid. What are the dividends received by the preference and ordinary shareholders in 2014?

Grasp the relationship between marginal costs, marginal benefits, and efficient production levels.

Differentiate between marginal private cost and marginal social cost.

Identify examples of externalities in daily life and their impact on society.

Understand the concept of external costs and how they lead to overproduction in the absence of government intervention.

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Definitions:

Appraised Fair Value

The estimated market value of an asset based on the judgment of a qualified appraiser at a specific time.

Cost

The value of economic resources used or the amount of expenditure incurred to acquire or produce a good or service.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its cost.

Property

Assets or possessions owned by an individual or company, encompassing both tangible and intangible assets.