ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. Should Mr.Santos exercised the pre-emptive right, how much is the increased in his ownership interest in the company? a. 25% b. 0 c. 1.25% d. 20%
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ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. Should Mr.Santos exercised the pre-emptive right, how much is the increased in his ownership interest in the company?
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- ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company? a.1,000 b. 1,250 c. 5,000 d. 4,000ESPAÑOL INGLÉS FRANCÉS ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This distribution is an example of a dividend to. in shares (stock dividend). b. owned (property dividend). C. in liquidation (liquidating dividend). Enviar cor MacBook 0ABC Corporation distributes $31,000 to its sole shareholder X. At the time of the distribution, ABC corporation’s E & P is $25,000. X’s basis in his stock is $10,000 before the distribution. What is X’s basis in his stock after the distributions? Group of answer choices A. $31,000 B. $10,000 C. $25,000 D. $4,000 E. $0 F. None of the above.
- ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Go’s ownership in the company is 5,000 shares. Should Mr. Go did not exercised the pre-emptive right, how much is the dilution in his ownership interest in the company?a. 25% b. 0 c. 1.25% d. 20%Venice Corp is an S Corp with only one shareholder and that shareholder's stock basis is $1,000. If Venice Corp has $50,000 of ordinary income and $55,000 of shareholder distributions in its first year, what is the shareholder's capital gain at the end of year one A. $0 B. $1,000 C. $4,000 D. $50,000 E. $55,000Jacobson Company is considering an investment in the common stock of Biltrite Company. What are the accounting issues surrounding the recording of income in future periods if Jacobson purchases: a. 15% of Biltrite’s outstanding shares. b. 40% of Biltrite’s outstanding shares. c. 100% of Biltrite’s outstanding shares. d. 80% of Biltrite’s outstanding shares.
- ESPAÑOL INGLÉS FRANCÉS ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This dividend must be recorded in ABC's books for to. the market value of XYZ stock. b. the market value of ABC shares. С. the book value of XYZ stock. Enviar come MacBook Air#11: Redemptions: § 302(b)(2). Z. Corporation has 1,000 shares of stock outstanding owned as follows: A B C D Shareholder Shares Owned 100 100 200 600 1,000 Adjusted Basis $10,000 10,000 20,000 60,000 All shareholders paid $100 per share for their stock. Z has substantial earnings and profits. a. During the year, the corporation redeemed 400 shares of D's stock for $400,000. What is the effect of the redemption on D? b. Same as (a) except the corporation redeemed 200 shares of D's stock for $200,000.Year 1 January 5 Selk purchased se, eee shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,112,000, and the fair value of its stock at December 31 is $34 per share. Year 2 October 15 xildaire declared and paid a cash dividend of $3.30 per share. December 31 Kildaire's net income for the year is $1,166,000, and the fair value of its stock at December 31 is $37 per share. Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4 Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant Influence over the investee. No 1 Year 3 Required: Prepare Journal entries to record the preceding transactions and events for Selk. 2 January 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $58,000 cash. Answer is not complete.…
- 2. M acquires H Company on 01/01/15. To obtain the net assets, M pays $200.000 in cash and issues 10.000 shares of its own $10 par value common stock. On this date, M's stock has a fair market value of $18 per share. The book values for both M and H as of 31/12/14, follow. The fair market value of each of H's accounts is also included. In addition H holds fully amortized patent that still retains a $30.000 value. H Company M Inc Fair Market Book Value Book Value Value Cash $ 300.000 $ 40.000 $ 40.000 Receivables 160.000 220.000 100.000 90.000 80.000 Inventory 130.000 130.000 Land 60.000 60.000 Buildings (net) Equipment (net) Accounts Payable Long-Term Liabilities 400.000 110.000 140.000 120.000 50.000 50.000 160.000 30.000 30.000 380.000 170.000 150.000 Common Stock 400.000 40.000 Retained Earnings 360.000 240.000 Required: Assume that this combination is a statutory merger so that H's accounts transferred to the records of M with H subsequently being dissolved corporation. Prepare the…X, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT? a. 6% of 1.2M b. 6% of 200,000 c. 6% of 1M d. None of the aboveAssume that Pam company purchased a 25% interest of Sin Company for $1,000,000 on 1/1/X1. At the time, Sin Company's equity included $2 million of capital stock and $2 million of retained earnings. During year X1, Sin reported a $500,000 income in year X1 and $400,000 income in year X2. Sin paid $200,000 of dividends per year in X1 and X2. Assume that, during the audit of Sin's year X1 financial statements, the auditor discovered that Pam's investment in Sin was valued at $1,000,000 on 12/31/X2. As the auditor, what entries should Pam make to correct the problem.