1. Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $630,000. How much of the proceeds would be allocated to the common stock?

a. $250,000 b. $240,909

c. $300,000 d. $286,363

2. Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2011 for $270,000. On November 15, 2015, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $25 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend?

Gain

a.$0

b. $513,000

c. $432,000

d. $432,000

Net Reduction in Retained Earnings

a. $108,000

b. $756,000

c. $243,000

d. $675,000

3. Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%, $100 par value cumulative preferred stock outstanding. It is two years in arrears on its preferred stock. How much cash will Colson distribute to the common stockholders?

a. $152,000. b. $68,000. c. $136,000. d. None.

1. Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $630,000. How much of the proceeds would be allocated to the common stock? a. $250,000 b. $240,909 c. $300,000 d. $286,363 2. Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2011 for $270,000. On November 15,2015 , Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $25 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? 3. Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%,$100 par value cumulative preferred stock outstanding. It is two years in arrears on its preferred stock. How much cash will Colson distribute to the common stockholders? a. $152,000. b. $68,000. c. $136,000. d. None