Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina The following is a press release from the company Alcoa Announces 33 Increase in Base Dividend, 2 for 1 Stock Split PITTSBURGH Alcoa today announced that its Board of Directors approved a base quarterly dividend increase of 33 3 Alcoa's announcement indicated that the new quarterly dividend would be 25 cents per share It also stated that the Board of Directors declared a two for one stock split and reaffirmed its commitment to a stock repurchase program Your boss, Mr Scott, has written you a simple note to the effect, What options do we have in accounting reporting these actions as they take place Required Respond to your boss (Mr Living Scott) using a one page, 12 point text memo Be sure to include the following in your memo writeup What are the two primary reporting alternatives Alcoa has in accounting for the repurchase of its shares Hint Think formal retirement versus treasury stock Be sure to mention the effect of the optional courses of action on total shareholders' equity What would be the effect of the optional courses of action on how stock would be presented in Alcoa's balance sheet What are the two primary courses of action Alcoa has in accounting for the stock split, and how would the choice affect Alcoa's shareholders' equity Hint Think stock split versus a large stock dividend Access the FASB Accounting Standards Codification at the AAA website ( see the syllabus ) Identify and include the specific citation from the authoritative literature that describes how to account for treasury stock and stock splits Note Keep in mind that a well written memo should include an introductory paragraph that CLEARLY states the purpose of your memo to your boss Avoid much writing here be specific and to the point Discussion paragraph(s) that addresses the questions posed Note that you can have several paragraphs as long as they address different major points Usually a memo has a conclusion recommendation paragraph but since this assignment does not require one, you can leave that out but find a professional way to end your memo and not just leaving it hanging

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Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company: Alcoa Announces 33%

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company:

Alcoa Announces 33% Increase in Base Dividend, 2-for -1 Stock Split

PITTSBURGHAlcoa today announced that its Board of Directors approved a base quarterly dividend increase of 33.3%. Alcoa's announcement indicated that the new quarterly dividend would be 25 cents per share. It also stated that the Board of Directors declared a two-for-one stock split and reaffirmed its commitment to a stock repurchase program. Your boss, Mr. Scott, has written you a simple note to the effect, What options do we have in accounting/reporting these actions as they take place?

Required:

Respond to your boss (Mr. Living Scott) using a one page, 12 point-text memo. Be sure to include the following in your memo writeup:

What are the two primary reporting alternatives Alcoa has in accounting for the repurchase of its shares? Hint: Think formal retirement versus treasury stock. Be sure to mention the effect of the optional courses of action on total shareholders' equity? What would be the effect of the optional courses of action on how stock would be presented in Alcoa's balance sheet?
What are the two primary courses of action Alcoa has in accounting for the stock split, and how would the choice affect Alcoa's shareholders' equity? Hint: Think stock-split versus a large stock dividend.
Access the FASB Accounting Standards Codification at the AAA website (see the syllabus). Identify and include the specific citation from the authoritative literature that describes how to account for treasury stock and stock-splits.

Note: Keep in mind that a well written memo should include an introductory paragraph that CLEARLY states the purpose of your memo to your boss. Avoid much writing here be specific and to the point.

Discussion paragraph(s) that addresses the questions posed. Note that you can have several paragraphs as long as they address different major points.

Usually a memo has a conclusion/recommendation paragraph but since this assignment does not require one, you can leave that out but find a professional way to end your memo and not just leaving it hanging.