18. The Coolidge Brewing Company has stockholder's equity as follows:

Common Stock, $10 par $100,000

Additional Paid in Capital-Common Stock $230,000

Retained Earnings $316,450

Total Stockholders Equity $646,450

The company is considering issuing an 8% stock dividend. The current market price of the companys stock is $46/share.

If this dividend is declared and issued, which of the following statements is NOT true?

1. Contributed capital will be increased by $8,000.
2. Retained earnings will be reduced by $36,800.
3. Common stock will be increased by $8,000.
4. Additional Paid in Capital from Stock Dividends will be increased by $28,800.
5. 800 additional shares of common stock will be issued.

19. The following information pertains to the Garfield Company.

The company had net income of $150,000. The company had income from continuing operations of $135,000 and income from extraordinary items of $15,000. The company had 20,000 weighted average common shares outstanding during the year. The company had 10,000 shares of 8%, $20 par, cumulative preferred stock outstanding during the year, but no dividends were declared during the year.

The company MUST report:

1. Basic EPS for Net Income of $7 .50, Income from Continuing Operations of $6.75, and Income from Extraordinary Items of $0.75
2. Basic EPS for Net Income of $6. 70, Income from Continuing Operations of $6. 75, and Income from Extraordinary Items of ($0.05)
3. Basic EPS for Net Income of $6. 70, Income from Continuing Operations of $5.95, and Income from Extraordinary Items of $0.75
4. Basic EPS for Net Income of $7 .50, Income from Continuing Operations of $5.95, and Income from Extraordinary Items of ($0.05)
5. Basic EPS for Net Income of $6. 70, Income from Continuing Operations of $5.95, and Income from Extraordinary Items of ($0.05)