The Following Transactions and Information Pertain to Lazar Corporation for 2009

question 165

Essay

The following transactions and information pertain to Lazar Corporation for 2009 and 2010.
2009
1 Purchased 3,000 shares of Ross Corporation common stock at $\$ 20$ per share (representing 5 percent of Ross's total outstanding stock) as a long-term investment.
Sept. 1 Received a cash dividend from Ross equal to $\$ .60$ per share.
Dec. 31 Market value of Ross stock at year end was $\$ 18$ per share.

2010
Sept. 1 Received a cash dividend from Ross equal to $\$ .50$ per share.
Nov. 1 Sold 400 shares of Ross at $\$ 19$ per share.
Dec. 31 Market value of Ross stock at year end was $\$ 17$ per share.
Prepare entries in journal form,without explanations,to record the above.Lazar's accounting year ends December 31.

Evaluate the effects of externalities on the efficiency of the market outcomes.

Identify and justify the use of taxes or subsidies to achieve social optimum.

Analyze the impact of externalities on private and social costs and benefits.

Explain the concept of market equilibrium and how it is affected by externalities.

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Definitions:

Thalamus

A structure in the brain that acts as a relay station, transmitting sensory and motor signals to the cerebral cortex.

Reticular Formation

A network of neurons located in the brainstem that is involved in consciousness, sleep-wake cycles, and filtering incoming stimuli to focus attention.

Sleep and Wake Cycles

The natural, biological rhythms that regulate our pattern of sleeping and waking, influenced by internal biological clocks and external factors.

Language Perception

The cognitive process by which spoken or written language is understood, interpreted, and analyzed.