McQs Right option only :

On October 31, the stockholders equity section of Huth Company consists of common stock $300,000 ($10 par value) and retained earnings $900,000. Huth is considering a 3-for-2 stock split that will reduce the par value. The current market price is $14 per share. What is the book value per share after the stock split? *

2 points

$38.10

$40

$26.67

$20

The stockholders equity section of Omer Corporation consists of common stock ($10 par) $2,000,000 and retained earnings $500,000. A 10% stock dividend is declared when the market value per share is $14. What is the book value per share after the stock dividend? *

2 points

$12.50

$11.66

$11.38

$11.36

The following information is available for Dixen Corporation for the year ended December 31, 2010: Cost of goods sold $205,000; Sales $450,000; Other revenues and gains $50,000; Operating expenses $75,000. Assuming a corporate tax rate of 40%, calculate the net income / net loss for the company. *

2 points

$220,000

$154,000

$170,000

$132,000

Perry retires from the partnership of Garland, Newlin, and Perry. She receives $85,000 of partnership assets in settlement of her capital balance of $77,000. Assuming that the income-sharing ratios are 5 : 3 : 2, respectively, how much of Perrys bonus is debited to Garlands capital account? *

2 points

$8,000

$77,000

$3,000

$5,000

$85,000

Conger Inc. declares a $45,000 cash dividend on December 31, 2010. The required annual dividend on preferred stock is $10,000. Determine the allocation of the dividend to preferred and common stockholders assuming the preferred stock is cumulative and dividends are 2year in arrears. *

2 points

$35,000

$25,000

$15,000

$45,000