Hampton Corporation was organized on January 1, 2020. During 2020, Hampton had the following transactions relating to shareholders' equity:

• Issued 10,000 shares of $1 par value common stock for $5 per share.
• Issued 4,000 shares of $1 par value preferred stock for $8 per share.
• Reported a net income of $65,000.
• Paid cash dividends of $25,000.
• Declared a 10% stock dividend (there were no fractional shares).
• Declared a 2-for-1 stock split on their outstanding common stock.

What is total shareholders' equity at the end of 2020?

Question 5 options:

a)

$130,200.

b)

$57,000.

c)

$172,000.

d)

$122,000.

On January 1, 2020, Link Corporation acquired Zant, Inc. for $4,600,000. On the date of acquisition, Zant's balance sheet reported assets of $4,300,000 and liabilities of $1,200,000. The assets' book values approximate their fair values. What amount of Goodwill should Link record as a result of the purchase?

Question 1 options:

a)	$4,600,000.

b)	$3,400,000.

c)	$1,500,000.

d)

$300,000.

e)

$0.

On June 1, 2020, Prince Corporation acquired a patent for $1,800,000. The patent is for a new rubber formula to improve Prince's tire manufacturing operations. The patent has a remaining legal life of 20 years. However, Prince Corporation estimates the patent to have a remaining useful life of 12 years. How much amortization expense should Prince Corporation record in 2020?

Question 2 options:

a)

$75,000.

b)

$150,000.

c)

$87,500.

d)

$90,000.

e)

$52,500