Centex,Inc

question 129

Multiple Choice

Centex,Inc.issued 50,000 shares of its $1 par value common stock for $20 per share.The journal entry to record the stock issue would include which of the following?

• A)A credit to cash for $1,000,000.
• B)A credit to additional paid-in capital for $1,000,000.
• C)A credit to additional paid-in capital for $50,000.
• D)A credit to common stock for $50,000.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life, taken into consideration for depreciation calculations.

Net Present Value

A financial metric that calculates the value of a projected income stream in today's dollars, net of the initial investment.

Discount Factor(s)

A multiplier used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the time value of money.