Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchasedin 2011 for $90,000. On November 15, 2015, Pierson declared a property dividend of one shareof Hunter for every ten shares of Pierson held by a stockholder. On that date, when the marketprice of Hunter was $28 per share, there were 90,000 shares of Pierson outstanding. What gainand net reduction in retained earnings would result from this property dividend?Gain =SWERNet reduction in R/E=90,000+ 10x128= 9000 x 28 = 252of $10 par value common stock outstandthe market price of the stA

Retained earnings represent the portion of a company's net income that has not been distributed to…

Answered: Pierson Corporation owned 10,000 shares…

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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Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2011 for $270,000. On November 15, 2015, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $25 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in Retained Earnings $0 $108,000 $513,000 $756,000 $432,000 $243,000 $432,000 $675,000
Stinson Corporation owned 40,000 shares of Matile Corporation. These shares were purchased in 2017 for $360,000. On November 15, 2021, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $28 per share, there were 360,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Net Reduction in Gain Retained Earnings a. $0 $ 324,000 b. $0 $1,008,000 c. $684,000 $ 324,000 d. $684,000 $ 144,000
Lea Corporation owned 20,000 shares of Mia Corporation's P5 par value common stock. These shares were purchased in 2007 for P180,000. On September 15, 2011, Lea declared a property dividend of one share of Mia for every ten shares of Lea held by a stockholder. On that date, when the market price of Mia was P14 per share, there were 180,000 shares of Lea outstanding. What net reduction in retained earnings would result from this property dividend? A. P72,000 B. P252.000 C. P90.000 D. P162.000
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Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On September 20, 2021, Clayton declared a property dividend of 1 share of Dayton for every 5 shares of Clayton stock held by a stockholder. On that date, there were 50,000 ordinary shares of Clayton outstanding, and the market value of Dayton shares was P30 per share. The entry to record the declaration of the property dividend would include a debit to Retained Earnings of
Crane Company owned 22100 shares of Wildhorse Co. purchased in 2017 for $607750. On December 15, 2020, Crane declared a property dividend of all of its Wildhorse Co. shares on the basis of one share of Wildhorse for every 10 shares of Crane common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Wildhorse shares held by Crane was $915000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of?
On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? a. P1,035,000 Cr. b. No entry c. P40,000 Dr. d. P1,060,000 Cr.

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