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