ABC Corporation sold 50 shares of common stock ($20 par) and 60 shares of preferred stock ($10 par) for $7,000. Match the items with the appropriate information

Question 25 options:

12	Incremental method of allocation
12	Cash ....................... 7,000 Common Stock . 1,000 Pa-in in Excess of Par CS 3,375 Preferred Stock . 600 Pd-in in Excess of Par Pref 2,025
12	Proportional method of allocation
12	Cash ....................... 7,000 Common Stock . 1,000 Pa-in in Excess of Par CS 4,000 Preferred Stock . 600 Pd-in in Excess of Par Pref 1,400

1.	The FMV of the common stock was $100 and the preferred $50.
2.	The FMV of the common stock was $100 and the the FMV of the preferred is unknown.

ABC Corporation holds stock as an investment in two companies, MNO Inc, RST, Co. and XYZ Corp. They also hold some treasury stock. Match the stock that would be distributed under each of the following situations.

Question 27 options:

12	RST Co shares.
12	XYZ Corp shares.
12	ABC's treasury stock
12	MNO Inc shares.

1.	ABC Corporation declares a property dividend.
2.	ABC Corporation declares a stock dividend.