Testbank Multiple Choice Question 55

On May 1, 2021, Marigold Corp. issued $1560000 of 6% bonds at 103, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marigolds common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 95. On May 1, 2021, the fair value of Marigolds common stock was $35 per share and of the warrants was $2. On May 1, 2021, Marigold should credit Paid-in Capital from Stock Warrants for

$108121.

$60721.

$62400.

$64921.

Testbank Multiple Choice Question 85

What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?

Increase and no effect

Increase and decrease

Decrease and no effect

Decrease and increase