!Required information[The following information applies to the questions displayed below.]Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders willreceive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badgerstock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of thisyear.Note: Leave no answer blank. Enter zero if applicable.c. How would you answer parts (a) and (b) if Badger offered shareholders a choice between receiving one additional share of Badgerstock for each 10 Badger shares held or receiving $120 cash in lieu of an additional share of stock?If she takes the:StockCashTaxable dividend income$11,000 $12,000Income tax basis per share of new shares$12,000 $10,000

c. If Badger Corporation offered a choice between additional stock or cash, the tax implications for…

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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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The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on January 1, 2024, which vest in four years. The fair value of the shares is $15.00. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the restricted stock. 2. & 3. Prepare the appropriate journal entries (if any).
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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.)
Required information [The following information applies to the questions displayed below.] On January 1, year 1, Tyra started working for Hatch Corporation. New employees must choose immediately between receiving 7 NQOs (each NQO provides the right to purchase for $5 per share 10 shares of Hatch stock) or 50 restricted shares. Hatch's stock price is $5 on Tyra's start date. Either form of equity-based compensation will vest in two years. Tyra believes that the stock will be worth $15 per share in two years and $25 in four years when she will sell the stock. Tyra's marginal tax rate is 32 percent and her long-term capital gains rate is 15 percent. Assuming that Tyra's price predictions are correct, answer the following questions (ignore present value, and use nominal dollars): (List cash outflows as negative amounts. Leave no answers blank. Enter zero if applicable.) c. What are the cash-flow effects to Tyra in the year she receives the restricted stock, in the year the stock vests, and…
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.0 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,300 common shares at $4.4 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $32,000. 31 Issued 76,000 common shares in exchange for land, building, and equipment, which have fair market values of $356,000, $476,000, and $44,000, respectively. Mar. 4 Purchased equipment at a cost of $8,120 cash. This was thought to be a special bargain price. It was felt that at least $10,400 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $92,000. The Income Summary account was closed. 2021…
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On January 1, 2019, N Company had five outstanding ordinary shares. On December 31, 2019, Norton declared dividends on the ordinary shares. The corporation decided to give the ordinary shareholders a choice between receiving a cash dividend of P10,000 per share or a property dividend in the form of a noncash asset. Each noncash asset has a fair value of P12,000. The corporation estimated that 40% of the ordinary shareholders will take the option of the cash dividend and 60% will elect for the noncash asset. How much is the dividends payable on December 31, 2019?
S7.
#16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? 0 pls provide the correct solution for the given answer
! Required information [The following information applies to the questions displayed below.] Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year. Note: Leave no answer blank. Enter zero if applicable. b. What is the tax basis in Madison's new and existing stock in Badger Corporation, assuming the distribution is nontaxable? Note: Round your answer to the nearest whole number. Income tax basis per share $ 91

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