None Lewis Industries owns 600,000 shares of Compton Corporation, which it originally purchased for $8 each. On December 1, 2020,Lewis declares it will distribute these shares to its stockholders as a dividend with a December 31 date of payment. The shares have amarket price of $7 on the declaration date and $9 on the distribution date. If Lewis' carrying value for the shares is $5, how much of areduction in stockholders' equity should it record as a result of this distribution?O $4,800,000O $3,000,000O $2,400,000O $5,400,000

The reduction would be equivalent to the carrying value of the stock, thus: Reduction in…

Answered: Lewis Industries owns 600,000 shares of…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 13P

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Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
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Please show the proper solution in a good accounting form.
Please show the proper solution in a good accounting form.
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