Amber Wison, owner of Canyon Canoe Company, decides to start a bew company that wil be operated as a corporaton. Outdoor Equipment Incorporated (OEI) This company wil sell outdoor coming and oqupmaulthorize the company to ssue 500,000 proferred shares that pay a dividend of 54 00 per year and 1,000,000 common sharesOEI had the tolowing select transactions in 2022(Click the icon to view the transactions.)RequcedDec 15 Dectated total cash dividends of $15,000DateAccounts and ExplanationDebitCreditDec 15Dec 31 Paid the cash dividendsDateAccounts and ExplanationDebitCreditDec. 31O Tim* = 0 0 O

When cash dividend is declared to the shareholders then it becomes current liability of the company…

Answered: Amber Wison owner ot Canyon Canoe…

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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Todd Winningham IV has $4,500 to invest. Todd owns shares of Gallagher Tennis Clubs Inc. Gallagher has issued a rights offering to its common shareholders. Five rights plus $44 cash will buy one new share. Gallagher's stock is selling for $59 ex-rights. a-1. How many rights could Todd buy with his $4,500? Number of rights 1500 a-2. Alternatively, how many shares could he buy with the same $4,500 at $59 per share? (Round the final answer to the nearest whole number.) Number of shares 76 b. If Todd invests his $4,500 in Gallagher rights and the price of Gallagher stock rises to $65 per share ex-rights, what would be his dollar profit on the rights? (First compute profits per right.) (Do not round intermediate calculations.) Dollar profit $ 1800 c. If Todd invests his $4,500 in Gallagher shares and the price of a share rises to $65 per share ex-rights, what would be his total dollar profit? (Round intermediate calculations.) Total dollar profit $ 456 d. What would be the answer to part b…
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On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $18,500 of common stock to Suzie. Jul. 1 Sell $18,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,500 cash.…
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Manshukh
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Shetland Corporation, a C corporation, has E&P of $1,000,000. The corporation stock is held as follows: Matthew 1,000 shares Aaron 1,000 shares Fay 1,000 shares Marlyebone Partnership 1,000 shares Devon Corp. 1,000 shares Total Shares 5,000 shares Matthew would like to redeem 500 shares of stock. The fair market value of the stock is $200,000. Matthew acquired the stock 10 years ago and has a basis of $200/share in her stock. Note: Since Shetland Corporation is not traded on an exchange, Matthew does not have the option for selling his stock on an open market. Here is additional information about Shetland Corporation: · Aaron is Matthew’s first cousin · Fay is Matthew’s mother · Matthew owns 10% of Marlyebone Partnership · Matthew owns 20% of the shares in Devon Corporation a. Will this redemption of 500 shares of Matthew’s stock be treated as a qualified stock redemption or will it be treated as a distribution? Support your answer with calculations. b. How much tax must…
Mike, who is a person, who works as a car salesman is also trades in the stock market. In 2020, he had the following stock transactions: Asset Number Asset Date Bought and Price Date Sold and Price 1 50 Shares of IBM Stock 4/23/2014 for $5000 3/05/2018 for $7,000 2 20 Shares of Mitsui Bank 04/06/2018 for $9,000 07/06/2018 for $6,500 3 500 Newmont Mining 05/24/2016 for $7,500 07/09/2018 for $3,500 4 140 Shares of ExxonMobil 03/06/2018 for $7,000 09/20/2018 for $9,000 5 200 Shares of Scams R Us 03/16/2017 for $8,000 03/16/2018 for $1,000 Using the chart below complete the gains and losses and determine the overall gain and loss (10PTS) Asset Number Long Term or Short Term Total Gain/Loss Tax Rate (if Gain) 1 2 3 4 5…
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What is James’ basis in his Forest Corporation stock?
4

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