Question:Question 1 :

Book Value vs Market value:

Company invested two floors commercialproperty $750,000 for business purpose in 2016.The estimated useful life is 15 years.They realized the value of the building increase from $750,000 to $1,000,000 in 2017.How does this transaction report on balance sheet and income statement. ?

Question 2:

Company was generate more profit this year.They decided to distributetheir profit to shareholders.However, it is important for a company to define how much should they pay to shareholders for each share.

Company shows the financial data as follow :

a] company paid a total of $150,000 in dividends over the last year of which there was a special one time dividend totaling$35,000

b] company also has $800,000 stockholdersequity, 50,,000 of preferredstock and 1,000,000 outstanding common shares.

c] company reported the cash flow on hand of $1,200,000 and distributed preferred dividend of $300,000, total share outstanding1,000,000

4] company reported the net income $900,000, and pay dividend to preferred shareholders $300,000, outstanding shares 1,000,000

5] company realized the market value per share is $174 per share

Please use the provided information to calculate :

1] Dividend per share

2] Book value per share

3] Cash flow per share

4] Earning per share

5] Price earning per share