Mark, Ben, and Tanya Own 4,250; 2,550; and 5,950 Shares

question 133

Short Answer

Mark, Ben, and Tanya own 4,250; 2,550; and 5,950 shares, respectively, of MBT Inc. What is the ratio of their share holdings in lowest terms?

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Definitions:

Cost Method

Cost Method is an accounting methodology for investment, where the investment is recorded at its acquisition cost without considering dividends or changes in market value.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value, often occurring when the bond's interest rate is higher than the current market rate.

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable net assets, often accounted for as goodwill or amortized over time.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not worth its current value on the balance sheet.