In 2020, Mr. Dale paid $40,700 for 3,700 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additionalshares. In 2020 and 2021, he received Form 1099s reporting the following:20202021DividendsReinvested$5,3656,140SharesPurchasedAssume the taxable year is 2022.393385Required A Required BPrice per Total SharesShare$13.65115.948Required:a. If Mr. Dale sells his 4,478 shares for $15 per share, compute his recognized gain.b. If he sells only 1,250 shares for $15 per share and uses the FIFO method to determine basis, compute his recognized gain.c. If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain.Required COwnedComplete this question by entering your answers in the tabs below.4,0934,478< Required BIf he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain.Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.Recognized gainPorgerred C

The objective of the question is to calculate the recognized gain for Mr. Dale under three different…

Answered: In 2020, Mr. Dale paid $40,700 for…

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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Blossom Corporation was organized on January 1, 2026 with the authorization of 1330000 shares of common stock with a par value of $6 per share. In 2026, the corporation had the following capital transactions: January 5 issued 665000 shares @ $10 per share July 28 purchased 79000 shares @ $12 per share December 31 sold the 79000 shares held in treasury @ $20 per share Blossom used the cost method to record the purchase and the reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2026? $3292000. $-0- $2041000. $2660000.
The following information is available about Ayayai Corp.'s investments at December 31, 2023. This is the first year Ayayai has purchased securities for investment purposes. Securities 2,500 shares of Petra Corporation common shares 900 shares of Dugald Inc. preferred shares Ayayai follows IFRS. (a) Cost Account Titles and Explanation $25,000 18,000 $43,000 Fair Value $30,000 16,000 $46,000 Prepare the adjusting entry for December 31, 2023, assuming the investments are acquired for trading purposes and accounted for using the FV-NI model with no separate reporting of dividends and other types of FV-NI investment income and losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Debit Credit
James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns $200,000 and pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to: ○ $0 O $72,000 $80,000 O $32,000
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During 2021, Tom Sanchez purchased 200 shares of common stock issued by Tri State Manufacturing for $3400 including commission. Later in the same year, Tom sold the shares for $3800 after commission. Calculate the following. (Round all answers to two decimal places.) 1. Profit on this stock transaction: Parentheses 2. Percentage return on investment: % %4
On February 1, 2019, Destiny Enterprise repurchases 770 shares of its outstanding common stock for $9 per share. On March 1, 2019, Destiny sells 250 shares of treasury stock for $12 per share. On May 10, 2019, Destiny sells the remaining 520 shares of its treasury stock for $6 per share. Prepare the journal entries to record these transactions.
On January 1, 2024, Fanny Services granted 24 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. The common shares have a market price of $10 per share on the grant date. Ignoring taxes, what is the effect of the award of restricted stock units on 2024 earnings? O $0 million. O $60 million. O $24 million. O $240 million.
Kim Corporation holds 10,000 shares of its P10 par common stock as treasury stock, which was purchased in 2019 at a cost of P120,000. On December 10, 2020, Kim sold all 10,000 shares for P210,000. Assuming that Kim used the cost method of accounting for treasury stock, this sale would result in a credit to Choices; Treasury Shares Premium of P90,000. Treasury Shares Premium of P110,000. Gain on Sale of Treasury Stock of P90,000. Retained Earnings of P90,000.
On January 1, 2024, Wallace, Inc. decides to invest in 12,800 shares of Stallion stock when the stock is selling for $11 per share On May 1, 2024, Stallion paid a 50 50 per share cash dividend to stockholders. On December 31, 2024, Stallion reports net income of $120,000 for 2024. Assume Stallion has 32,000 shares of voting stock outstanding during 2024 and Wallace has significant influence over Stallion Read the requirements EXITO Requirement 1. Identify what type of investment the Stallion stock is for Wallace Wallace's investment would be investment
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took part in the following selected transactions. Prepare journal entry(entries) for following independent event. a. Purchased 6,000 shares of treasury stock at $70 per share. The treksury shares purchased were issued in 2018 at $46 per share. Assuming Overland uses the retirement method to prepare entry and before this transaction the company had $100,000 credit balance of Paid-in capital- shares repurchase and $800,000 retained earnings b. The board votes a 4-for-1 stock split. At the date, the market value is $80 c. The board votes a 150% stock dividend. At the date, the market value is $80, assuming the company treats the distribution as "large" stock dividends effected in the form of a stock dividend and before this transaction the company has 54,000 shares of common stock
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Pearl Inc. owns shares of Martinez Corporation stock. At December 31, 2020, the securities were carried in Pearl’s accounting records at their cost of $821,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,333,000, Pearl declared a property dividend whereby the Martinez securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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