2. Dustin purchased 50 shares of Short Corporation for $500. During the current year,Short declared a nontaxable 10% stock dividend. What is the basis per share before andafter the stock dividend is distributed?A)Before$10B)Before$10C)Before$10D)Before$9.09After$9.09After$10After$11After$10

A stock dividend is a corporate move whereby a business gives its current owners extra shares of its…

Answered: 2. Dustin purchased 50 shares of Short…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An investor who owns 100 shares of JJJ Company common stock with a cost of P120 a share received 100 stock rights entitling him to buy one new share at P100 for every four held. At the date of the issuance of the rights, market values were: per share, ex-rights, P140; and per right, P10. If the investor sells his rights at the market value of P10 each, how much gain/(loss) per right will he make?
! Required information [The following information applies to the questions displayed below.] a. On March 22, purchased 880 shares of RPI Company stock at $13 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $2 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 440 shares of RPI stock for $23 per share. Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which occurred during the current year. View transaction list
The D asenso corp issued 5000 shares of common stock at 100.00 per share. Of this, Eugene owns 500 shares which he acquired at 100 per share. In December, 2013 the corporation declared and paid 25% stock dividend payable in preferred stock. Eugene sold all his stock dividend shares at 120 per share on February 10, 2014. Required: a. Compute the gain or loss on sale of stock dividend shares, assuming that at the time of payment of the stock dividend, the fair market value of the shares of stock are: Common: 110 per share Preferred: 110 per share b. Compute the capital gain due on said sale
Vine Corporation has a single class of common stock outstanding. Tillie owns 1,000 shares, which she purchased five years ago for $120,000. Vine declares a stock dividend payable in 8% preferred stock having a $230 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date—December 16 of the current year—the common stock was worth $437 per share, and the preferred stock was worth $230 per share. On April 1 of the next year, Tillie sells half of her preferred stock for $12,000. How much gain or loss must Tillie recognize when she sells the preferred stock? (Ignore the implications of Sec. 306 .) Do not give answer in image
Subject: accounting
Data pertaining to dividends from Jenny Company’s ordinary shares investments for the year 2023 follow: * On October 1, 2023, Jenny received P500,000 liquidating dividend from A Company. Jenny owns a 10% interest in A Company. * Jenny owns a 5% interest in B Company which declared a P5,000,000 cash dividend on November 15, 2023 to stockholders of record on December 15, 2023 payable on January 15, 2024. Jenny does not have ability to exercise significant influence over B Company. * On December 1, 2023, Jenny received from C Company a dividend in kind of one share D Company ordinary shares for every 4 C Company ordinary shares held. Jenny holds 100,000 C Company shares, which have a market price of P50 per share on December 1, 2023. The market price of D Company ordinary is P30 per share. What amount should Jenny report as dividend income in its 2023 income statement?
6. Brian owns 25% of Raisman Corporation's single class of stock (Brian owns 500 of 2,000 outstanding shares). Brian's basis in the stock is $12,000. Raisman's E&P is $132,000. If Raisman redeems 200 of Brian's stock for $28,000, Brian must report dividend income (if any) of (show all work and explain your answer): A) $0. B) $11,200. C) $16,800. D) $28,000.
Mr. Ragot owns 20,000 shares of Anderson Corporation stock. The company will be issuing a stock dividend. Before the dividend Mr. Ragot owned 10% of the outstanding stock. It had a market value of $200,000, or $10 per share. After he receives the 10% stock dividend, what is the value of his shares?
on January 1, T purchased both a bond and stock of CorporationX. The bond was purchased for $10,000, had a face value of $10,000 and paid 10% interest on December 31 of each year. The stock was purchased for $10,000 and paid a dividend of $1,000 on December 31. T sold both the stock and bond on July 1 of the same year. The bond sold for $10,300 and the stock for $11,000. What income, gain or loss, including character type (eg capital gain, interest, dividend, ordinary will T recognize as a result of the sales?
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Vine Corporation has a single class of common stock outstanding. Tia owns 1,000 shares, which she purchased five years ago for $180,000. Vine declares a stock dividend payable in 8% preferred stock having a $130 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date-January 2 of the current year the common stock was worth $247 per share, and the preferred stock was worth $130 per share. On April 1 of the current year, Tia sells half of her preferred stock for $11,000. Read the requirements. (Complete all input fields. Enter a 0 where appropriate.) Requirements a. b. C. How much income must Tia recognize when she receives the stock dividend? How much gain or loss must Tia recognize when she sells preferred stock? (Ignore the implications of Sec. 306.) What is Tia's basis in her remaining common and preferred shares after the sale? When does her holding period for the preferred shares begin? Print Done X

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