Problem 15-9 the following is a summary of all relevant transactions of vicario corporation since it was organized in 2017. in 2017, 15,000 shares were authorized and 7,000 shares of common stock ($50 par value) were issued at a price of $57. in 2018, 1,000 shares were issued as a stock dividend when the stock was selling for $60. 300 shares of common stock were bought in 2019 at a cost of $64 per share. these 300 shares are still in the company treasury. in 2018, 10,000 preferred shares were authorized and the company issued 5,000 of them ($100 par value) at $113. some of the preferred stock was reacquired by the company and later reissued for $4,700 more than it cost the company. the corporation has earned a total of $610,000 in net income after income taxes and paid out a total of $312,600 in cash dividends since incorporation. prepare the stockholders’ equity section of the balance sheet in proper form for vicario corporation as of december 31, 2019. account for treasury stock using the cost method. (enter account name only. do not provide descriptive information.)

the first one $24,630

answerprotecting competitors;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.