WORKING PAPERS F/ FUND ACCOUNTING
22nd Edition
ISBN: 9781308868394
Author: Wild
Publisher: MCG CUSTOM
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Question
Chapter 13, Problem 9BTN
Requirement-1:
To determine
To determine:
The Book value per Common share for Samsung
2)
To determine
To determine:
The Basic Earnings per share (EPS) for Samsung
Requirement-3:
To determine
To determine:
The Dividend payout ratio for Samsung
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Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an
employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year
at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie
bought the following bikes:
Description
Retail Price
Specialized road bike
$ 4,000
Cost
$ 3,600
Employee
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$ 2,800
Rocky Mountain mountain bike
5,000
4,100
4,000
Trek road bike
3,900
3,300
2,730
Yeti mountain bike
4,600
3,400
3,680
b. What amount of deductions is Bad Dog allowed to claim from these transactions?
Amount of deductions
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an
employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year
at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie
bought the following bikes:
Description
Retail Price
Specialized road bike
$ 4,000
Cost
$ 3,600
Employee
Price
$ 2,800
Rocky Mountain mountain bike
5,000
4,100
4,000
Trek road bike
3,900
3,300
2,730
Yeti mountain bike
4,600
3,400
3,680
a. What amount is Jarvie required to include in taxable income from these purchases?
Amount to be included
Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $19 per
share). At the time he started working for Cutter Corporation three years ago, Cutter's stock price was $19 per share. Yost
exercised all of his options when the share price was $38 per share. Two years after acquiring the shares, he sold them at
$59 per share.
Note: Input all amounts as positive values. Leave no answer blank. Enter zero if applicable.
d. Assume that Yost's options were exercisable at $24 and expired after five years. If the stock only reached $22 during its high point
during the five-year period, what are Yost's tax consequences on the grant date, the exercise date, and the date the shares are sold,
assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is 15 percent?
Grant date
Exercise date
Taxes Due
Sale date
Chapter 13 Solutions
WORKING PAPERS F/ FUND ACCOUNTING
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQ
Ch. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 8DQCh. 13 - Prob. 18DQCh. 13 - Prob. 19DQCh. 13 - Prob. 20DQCh. 13 - Prob. 21DQCh. 13 - Prob. 22DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QSCh. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Problem 13-1A Stockholders’ equity transactions...Ch. 13 - Prob. 2APSACh. 13 - Prob. 3APSACh. 13 - Prob. 4APSACh. 13 - Prob. 5APSACh. 13 - Problem 13-1B Stockholders’ equity transactions...Ch. 13 - Prob. 2BPSBCh. 13 - Prob. 3BPSBCh. 13 - Prob. 4BPSBCh. 13 - Prob. 5BPSBCh. 13 - Prob. 13SPCh. 13 - Prob. 1GLPCh. 13 - Prob. 2GLPCh. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - Prob. 5BTNCh. 13 - Prob. 6BTNCh. 13 - Prob. 7BTNCh. 13 - BTN 13–8 Review 30 to 69 minutes of financial news...Ch. 13 - Prob. 9BTN
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