Vine Corporation has a single class of common stock outstanding. Tia owns 1,000 shares, which she purchased five years ago for $180,000. Vine declares a stock dividend payable in 8% preferred stock having a $130 par value. Each shareholder receives one share of preferredstock for ten shares of common stock. On the distribution date-January 2 of the current year the common stock was worth $247 per share, and the preferred stock was worth $130 per share. On April 1 of the current year, Tia sells half of her preferred stock for $11,000.Read the requirements.(Complete all input fields. Enter a 0 where appropriate.)Requirementsa.b.C.How much income must Tia recognize when she receives thestock dividend?How much gain or loss must Tia recognize when she sellspreferred stock? (Ignore the implications of Sec. 306.)What is Tia's basis in her remaining common and preferred shares afterthe sale? When does her holding period for the preferred shares begin?PrintDoneX

Answer:- Stock dividend meaning:- The dividend is the portion of profits that shareholders receive…

Answered: Vine Corporation has a single class of…

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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Doug Graves Cemetery had 69,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the following actions: June 1 Declared a 2-for-1 stock split, when the fair value of the stock was $44 per share. October 15 Declared a $0.50 per share cash dividend. In Graves's statement of shareholders' equity for 2021, what amount should Graves report as dividends?
William Company was organized on January 1, 2021, with 100,000 shares of authorized P100 par value ordinary shares. On the same date William issued 80,000 shares at P150 per share and on December 31, 2022, William purchased 10,000 shares at P130 per share to be held as treasury. William uses the par value method of recording treasury shares. What would be the balance in the share premium from treasury shares account on December 31, 2022?
When Ale Co. started operating in Year 1, it issued 750,000 shares of common stock. In Year 2, the company issued 50,000 more shares of common stock and 100,000 shares of preferred stock (with each preferred share convertible into one common share). In Year 3, 40 percent of the preferred shares were converted into common shares. At the end of Year 3, the company underwent a 4-for-1 stock split. Determine the total number of outstanding common stock shares at the end of Year 3.
Early in the year Amir and several friends organized a corporation called Malik, Inc. The corporation was authorized to issue 100,000 shares of $100 par value, 5 percent cumulative preferred stock and 100,000 shares of $1 par value common stock. The following transactions (among others) occurred during the year: Early in the year Amir and several friends organized a corporation called Malik, Inc. The corporation was authorized to issue 100,000 shares of $100 par value, 5 percent cumulative preferred stock and 100,000 shares of $1 par value common stock. The following transactions (among others) occurred during the year: Feb. 8 Feb. 13 Feb. 19 Issued for cash 40,000 shares of common stock at $10 per share. The shares were issued to Amir and four other investors. Issued an additional 1,000 shares of common stock to Amir in exchange for his services in organizing the corporation. The stockholders agreed that these services were worth $12,000. Issued 4,000 shares of preferred…
Warhol Company has 2,000 shares of $0.50 par value common shares authorized. On March 1, Warhol sold 1,550 shares for $10 per share. On May 1 of the same year, Warhol reacquired 550 of those shares for $11 each. Over the next several months, the market price of the shares increased and Warhol Company reissued 150 shares at $15 per shares. By December 1, the company reissued the remaining 400 shares. At that time, the market price of the shares had fallen to $9 per share. What is the entry the company would make on December 1st to record the reissue of 400 shares of treasury stock? Responses Cash 3,600 Capital in Excess of Cost - Treasury Stock 400 Retained Earnings 400 Treasury Stock 4,400 Cash…
At the end of 20x6, Jabba the Hutt's Hot Dog Hut had 350,000 shares of $1 par value common stock issued and outstanding. In addition, Jabba had 94,000 shares of $5 par value, 10% cumulative preferred stock as part of his shareholder's equity. All of Jabba's stock, both common and preferred, has been outstanding since the company was incorporated at the beginning of 20x5. Jabba did not declare any dividends in 20x5, but he declares and pays a $140,000 cash dividend on December 31, 20x6. Determine the amount of cash that will be distributed to each class of Jabba's stockholders' equity for this two-year-old company. Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders Par Value per Preferred Share $ 0 Dividend Rate % Dividend per Number of Preferred Preferred Share Shares Preferred Dividend for two years
The D asenso corp issued 5000 shares of common stock at 100.00 per share. Of this, Eugene owns 500 shares which he acquired at 100 per share. In December, 2013 the corporation declared and paid 25% stock dividend payable in preferred stock. Eugene sold all his stock dividend shares at 120 per share on February 10, 2014. Required: a. Compute the gain or loss on sale of stock dividend shares, assuming that at the time of payment of the stock dividend, the fair market value of the shares of stock are: Common: 110 per share Preferred: 110 per share b. Compute the capital gain due on said sale
Vine Corporation has a single class of common stock outstanding. Tillie owns 1,000 shares, which she purchased five years ago for $120,000. Vine declares a stock dividend payable in 8% preferred stock having a $230 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date—December 16 of the current year—the common stock was worth $437 per share, and the preferred stock was worth $230 per share. On April 1 of the next year, Tillie sells half of her preferred stock for $12,000. How much gain or loss must Tillie recognize when she sells the preferred stock? (Ignore the implications of Sec. 306 .) Do not give answer in image
Knight Co. owned 80% of the common stock of Stoop Co. Stoop had 50,000 shares of $5 par value common stock and 2,000 shares of preferred stock outstanding. Each preferred share received an annual per share dividend of $10 and is convertible into four shares of common stock. Knight did not own any of Stoop's preferred stock. Stoop also had 600 bonds outstanding, each of which is convertible into ten shares of common stock. Stoop's annual after-tax interest expense for the bonds was $22,000. Knight did not own any of Stoop's bonds. Stoop reported income of $300,000 for 2017. Stoop's diluted earnings per share (rounded) is calculated to be Please don't provide answer in image format thank you
Raymond James had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Raymond James sold 40,000 shares of common stock for cash. Raymond James also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Raymond James also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021. Required:Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $20 per share. Later in the year, the company decides to purchase 100 shares at a cost of $23 per share. Record the transaction if California Surf resells the 100 shares of treasury stock at $25 per share. Record the sale of treasury stock.
Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 10% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Mar. 1 Declares a cash dividend of $2 per share. Mar. 30 Pays the cash dividend. Jul. 10 Declares a 5% stock dividend when the stock is trading at $20 per share. Aug. 5 Issues the stock dividend. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Mar. 30 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 Jul. 10 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18…

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