19 >> Mio Corp. was the sole stockholder of Plasti Corp. On September 30, Year 1, Mio declared a property dividend of 2,000 shares of Plasti $1 par value common stock, to be distributed to Mio's stockholders. On September 30, the carrying value of Plasti's stock was $1.50 per share and the fair value was $4.50. Immediately after the distribution, the fair value of Plasti's stock was $5.50 per share. What amount should Mio report in its Year 1 financial statements as gain on disposal of the Plasti stock? 20 A. $1,000 B. $2,000 C. $6,000 D. $8,000 The stockholders of Meadow Corp. approved a stock-option plan that grants the company's top three executives options to purchase a maximum of 1,000 shares each of Meadow's $2 par common stock for $19 per share. The options were granted on January 1 when the fair value of the stock was $20 per share. Meadow determined that the fair value of the compensation is $300,000 and the vesting period is three years. What amount of compensation expense from the options should Meadow record in the year the options were granted? A. $20,000 B. $60,000 C. $100,000 D. $300,000 18 A company has 10,000 shares of common stock issued, 2,000 of which are shares of treasury stock. The par value of the stock Is $10 per share. On January 1, Year 1, the company declared a 5% dividend to be paid in cash on June 30, Year 1. What journal entry should the company record on the declaration date? A. Debit retained earnings for $4,000 and credit dividends payable for $4,000. B. Debit dividends expense for $4,000 and credit dividends payable for $4,000. C. Debit dividends expense for $5,000 and credit dividends payable for $5,000. D. Debit retained earnings for $5,000 and credit dividends payable for $5,000