Multiple Choice Question 65

Vaughn Company issues $26300000, 7%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 6%. What are the proceeds from the bond issue?

ff	3.0%	3.5%	6%	7%
Present value of a single sum for 5 periods	0.86261	0.84197	0.74726	0.71299
Present value of a single sum for 10 periods	0.74409	0.70892	0.55839	0.50835
Present value of an annuity for 5 periods	4.57971	4.51505	4.21236	4.10020
Present value of an annuity for 10 periods	8.53020	8.31661	7.36009	7.02358

$27410041

$27421616

$27414111

$26300000

Multiple Choice Question 74

Waterway Industries issues 4000 shares of its $5 par value common stock having a fair value of $25 per share and 6000 shares of its $10 par value preferred stock having a fair value of $25 per share for a lump sum of $205100. What amount of the proceeds should be allocated to the preferred stock?

$139367

$123060

$82039

$178969

Multiple Choice Question 90

Sheffield Corp. owned 15100 shares of Pharoah Company. These shares were purchased in 2014 for $105700. On November 15, 2018, Sheffield declared a property dividend of one share of Pharoah for every ten shares of Sheffield held by a stockholder. On that date, when the market price of Pharoah was $29 per share, there were 105700 shares of Sheffield outstanding. What gain and net reduction in retained earnings would result from this property dividend?

Gain

Net Reduction in Retained Earnings

$0

$73990

$232540

$73990

$232540

$ 28000

$0

$306530