Question
1. A machine with a cost of $110,000 has an estimated residual value of $15,000 and an estimated life of 6 years or 19,000 hours.
1. A machine with a cost of $110,000 has an estimated residual value of $15,000 and an estimated life of 6 years or 19,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?
2.
The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31.
Common Stock $5 par, 500,000 shares authorized | $310,000 |
Paid-In Capital in Excess of ParCommon Stock | 660,000 |
Preferred Stock $100 par, 100,000 shares authorized | 500,000 |
Paid-In Capital in Excess of ParPreferred | 120,000 |
Retained Earnings | 200,000 |
Treasury Stock (cost $10 per share) | 100,000 |
How many shares of common stock are outstanding?
3.
The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31.
Common Stock $5 par, 60,000 shares issued | $300,000 |
Paid-In Capital in Excess of ParCommon Stock | 600,000 |
Preferred Stock $100 par, 5,000 shares issued | 500,000 |
Paid-In Capital in Excess of ParPreferred | 190,000 |
Retained Earnings | 200,000 |
Treasury Stock (cost $10 per share) | 130,000 |
If net income for the year was $95,000 and a preferred stock dividend of $35,000 was paid, what was the beginning value of retained earnings?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started