troubled debt restructuring , May should report a gain , before taxes , in its 2005 income statement of
Question 5
Universe Co . issued 500,000 shares of common stock in the current year . Universe declared a 30 % stock dividend . The market value was $ 50 per share , the par value was $ 10 , and the average issue price was $ 30 per share . By what amount will Universe decrease stockholders ' equity for the dividend ?
Question 6
On July 1 , 2005 , Day Co . received $ 103,288 for $ 100,000 face amount , 12 % bonds , a price that yields 10 %. Interest expense for the six months ended December 31 , 2005 should be
Question 7
On July 1 , 2005 , Vail Corp . issued rights to stockholders to subscribe to additional shares of its common stock . One right was issued for each share owned . A stockholder could purchase one additional share for 10 rights plus $ 15 cash . The rights expired on September 30 , 2005 . On July 1 , 2005 , the market price of a share with the right attached was $ 40 , while the market price of one right alone was $ 2 . Vail ' s stockholders ' equity on June 30 , 2005 comprised the following : By what amount should Vail ' s retained earnings decrease as a result of issuance of the stock rights on July 1 , 2005 ?
Question 8