Multiple Choice Question 51

On December 1, 2018, Vaughn Manufacturing issued at 102, 690 of its 7%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Vaughn's common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be

$661572.

$690000.

$668610.

$703800.

Multiple Choice Question 99

On January 1, 2018, Crane Company had 383000 shares of its $2 par value common stock outstanding. On March 1, Crane sold an additional 759000 shares on the open market at $20 per share. Crane issued a 20% stock dividend on May 1. On August 1, Crane purchased 422000 shares and immediately retired the stock. On November 1, 603000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2018? (Rounded to the nearest dollar.)

728301

1551400

528301

1143267

Multiple Choice Question 106

On January 2, 2018, Crane Company issued at par $1900000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2018. Crane had 190000 shares of common stock outstanding during 2018. Cranes 2018 net income was $890000 and the income tax rate was 25%. Cranes diluted earnings per share for 2018 would be (rounded to the nearest penny):

$4.68.

$4.67.

$5.13.

$4.85.

Multiple Choice Question 73

Sunland Company issued 10100 shares of its $10 par value common stock having a fair value of $30 per share and 14000 shares of its $10 par value preferred stock having a fair value of $25 per share for a lump sum of $510000. How much of the proceeds would be allocated to the common stock?

$303000

$236646

$273354

$329250