Find the Trade Discount Amount for an Order of Paper

question 142

Multiple Choice

Find the trade discount amount for an order of paper supplies with a list price of $25,000, less trade discounts of 30/20/10. Use the single equivalent discount for your answer.

• A) $16,120
• B) $11,250
• C) $12,400
• D) $13,750

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a dividend entitlement.

No-par Common Stock

Common stock issued without a par value which means it is not assigned a nominal or face value, but it still represents ownership in a company.

Stated Value

A nominal value assigned to a corporation's stock that bears no relation to its market price, used for calculating capital stock.

Par Preferred Stock

A type of preferred stock that has a nominal face value, which is the amount paid out to shareholders during liquidation before common stockholders.