Question
Part A) On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence.The investment is
Part A)
On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence.The investment is intended as a long-term investment.The stock was purchased for $10 per share, and represents a 10% ownership stake.Zulu Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017.On December 31, 2017, Zulu Company's stock was trading on the open market for $12 per share at the end of the year.Use this information to determine the dollar amounts that should be reported by Alpha Company during 2017 for the following items:
1. Dividend Income
2. Unrealized Gain/Loss - OIC (If a loss, enter the amount with dollar sign inside of brackets)
3. Available-for-Sales Securities
Part B)
During all of fiscal year 2017, Alpha Corporation had outstanding 100,000 shares of $10 par common stock and 5,000 shares of noncumulative, $100 par value, 7% preferred stock.For 2017, Alpha Corporation had $230,000 income from continuing operations and $575,000 loss on discontinued operations; dividends were paid only to preferred shareholders.Use this information to determine how much Alpha Corporation should report for 2017 basic earnings (loss) per share for income (loss) from continuing operations. If it is a loss EPS then present the value in brackets.
Part C)
Alpha Corporation started the 2017 fiscal year with 100,000 shares common stock outstanding.On April 1 an additional 30,000 shares were issued. On July 1 Alpha reacquired 10,000 shares. Use this information to determine the number of weighted-average shares of common stock outstanding for the 2017 fiscal year?
Part D)
On January 1, 2017, Alpha Corporation had 50,000 shares of $10 par value common stock outstanding.On July 1, 2017, Alpha issued 50,000 additional shares on July 1, 2017. There is no class of preferred stock.At December 31, 2017, total stockholders' equity was $4,250,000.Use this information to determine the book value per share as of end of the FY 2017: (Round your answer to the nearest penny.)
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