Red sox corp issued 175,000 shares of its no par common stock to Louisville Sluggers
Red sox corp issued 175,000 shares of its no par common stock to Louisville Sluggers in exchange for 1,000 rate bats that sell for $3,500 each. By what amount should red Sox Corporation’s shareholders equity change as a result of this transaction?1) increase $3,500.0002) icrease $175,0003)decrease $3.500.0004) decrease $175.0005) no changePension plan assets were $100 million at the beginning of the year and $104 million at the end. At the end of the year, retiree benefits paid by the trustee were $6 mil and cash investerd in the pension fund was $7 mil. What was the percentage rate of return on plan assets?1) 5%2) 3%3) 2%4) 7%5) 1%Dustin Corporation issued $60 mil of 5%, 20 year bonds at 102. Each of the 60,000 bonds was convirtible into one share of 1$ par common stock. What is the premium or discount on bonds payable?1) no premium or discount recorded2) $3 mil discount3) $3 mil premium4) $1.2 mil discount5) $1.2 mil premium