Datacom Services, Inc., reported the following statement of stockholders' equity for the year ended October 31, 20X7.

Question:

Required
Answer these questions about Datacom Services' stockholders' equity transactions:
1. The income tax rate is 40%. How much income before income tax did Datacom report on the income statement?
2. What is the par value of the company's common stock?
3. At what price per share did Datacom Services issue its common stock during the year?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...