Bramble Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $283,000 net loss 2019 $36,000 net loss 2020 $746,000 net income At December 31, 2020, Bramble Inc. capital accounts were as follows. 9% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,300 shares $530,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 758,000 shares $758,000 Bramble Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Bramble began operations. The state law permits dividends only from retained earnings.(a) Compute the book value of the common stock at December 31, 2020. Book value per share $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places (b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $107 per share.
Bramble Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $283,000 net loss 2019 $36,000 net loss 2020 $746,000 net income At December 31, 2020, Bramble Inc. capital accounts were as follows. 9% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,300 shares $530,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 758,000 shares $758,000 Bramble Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Bramble began operations. The state law permits dividends only from retained earnings.(a) Compute the book value of the common stock at December 31, 2020. Book value per share $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places (b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $107 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bramble Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations.
|
2018
|
$283,000 net loss |
2019
|
$36,000 net loss |
2020
|
$746,000 net income |
At December 31, 2020, Bramble Inc. capital accounts were as follows.
| 9% cumulative |
||
| and outstanding 5,300 shares | $530,000 | |
| Common stock, par value $1.00; authorized 1,000,000 shares; | ||
| issued and outstanding 758,000 shares | $758,000 |
Bramble Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Bramble began operations. The state law permits dividends only from
(a) Compute the book value of the common stock at December 31, 2020.
| Book value per share | $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places |
(b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $107 per share.
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