Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a). Spartan reported accumulated E&P at the beginning of the year of $3,300 and current E&P at year end was $13,100. Spartan made dividend distributions of $1,800 on June 1 and $5,700 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rule 74-338 and Revenue Rule 74-339 for help in making this calculation. Note: Round your intermediate calculations to the nearest whole dollar amount.

Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a). Spartan reported accumulated E&P at the beginning of the year of $3,300 and current E&P at year end was $13,100. Spartan made dividend distributions of $1,800 on June 1 and $5,700 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rule 74-338 and Revenue Rule 74-339 for help in making this calculation. Note: Round your intermediate calculations to the nearest whole dollar amount.

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Spartan Corporation redeemed 25 percent of its shares for $1,800 on July 1 of this year, in a transaction that qualified as an exchange under IRC §302(a). Spartan’s accumulated E&P at the beginning of the year was $1,800. Its current E&P is $16,300. Spartan made dividend distributions of $2,700 on June 1 and $6,000 on August 31. Determine the beginning balance in Spartan’s accumulated E&P at the beginning of the next year. See Revenue Rules 74-338 and 74-339 for help in making this calculation. (Round your intermediate calculations to the nearest whole dollar amount.)
On Nov 15, Quazar Co. declared a property dividend of marketable securities to be distributed on Dec 15 to stockholders of record on Dec 1. The market value of the securities was as follows: November 15 $225,000 December 1 $220,000 December 15 $250,000 The mararketable securities originally cost Quazar $200,000. What is the net effect on Quazar's retained earnings as a result of declaring this property dividend ?
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On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.Following are the data for the following year (Year 2).Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities.b. Prepare any adjusting entry needed at December 31, Year 1.Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A—Credit" as the…
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