Question
3.A company issued 28,000 shares of $42 par value common stock upon conversion of 15,000 shares of $5 par value preferred stock. The preferred stock
3.A company issued 28,000 shares of $42 par value common stock upon conversion of 15,000 shares of $5 par value preferred stock. The preferred stock was originally issued at $20 per share. The common stock is trading at $64 per share at the time of conversion. In the journal entry to record the conversion of the preferred stock, Retained Earnings will decrease/increase by . If the conversion does not affect retained earnings, then enter 0.
4.On January 1, 2019, a company granted 10,000 options to key executives. Each option allows the executive to purchase one share of the companys $5 par value common stock at a price of $20 per share. The options were exercisable within a 7-year period beginning January 1, 2023, if the grantee is still employed by the company at the time of the exercise. On the grant date, a fair value option-pricing model determines total compensation to be $633,000. How much compensation expense should be recorded on 12/31/2020? If no compensation expense should be recorded on 12/31/2020, please enter 0. Rounded to the nearest dollar, if necessary.
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