The transactions listed below relate to Vikings Inc. You are to assume that on the date on which each of the transactions occurred, the corporations accounts showed only common stock ($100 par) outstanding, a current ratio of 2.7:1, and a substantial net income for the year to date (before giving effect to the transaction concerned). On that date, the book value per share of stock was $151.53. Each numbered transaction below is to be considered completely independent of the others, and its related answer should be based on the effect(s) of that transaction alone. Assume that all numbered transactions occurred during 2018 and that the amount involved in each case is sufficiently material to distort reported net income if improperly included in the determination of net income. Assume further that each transaction was recorded in accordance with generally accepted accounting principles and, where applicable, in conformity with the all-inclusive concept of the income statement. For each of the numbered transactions you are to decide whether it: List the numbers 1 through 9. Select as many letters as you deem appropriate to reflect the effect(s) of each transaction as of the date of the transaction by printing beside the transaction number the letter(s) that identifies that transactions effect(s).

1) The corporation called in all its outstanding shares of stock and exchanged them for new shares on a 2-for-1 basis, reducing the par value at the same time to $50 per share.

Increased the corporations 2018 net income.

Decreased the corporations 2018 net income.

Increased the corporations total retained earnings directly (i.e., not via net income).

Decreased the corporations total retained earnings directly.

Increased the corporations current ratio.

Decreased the corporations current ratio.

Increased each stockholders proportionate share of total stockholders equity.

Decreased each stockholders proportionate share of total stockholders equity.

Increased each stockholders equity per share of stock (book value).

Decreased each stockholders equity per share of stock (book value).

Had none of the foregoing effects.

2) In January, the board directed the write-off of certain patent rights that had suddenly and unexpectedly become worthless.

Increased the corporations 2018 net income.

Decreased the corporations 2018 net income.

Increased the corporations total retained earnings directly (i.e., not via net income).

Decreased the corporations total retained earnings directly.

Increased the corporations current ratio.

Decreased the corporations current ratio.

Increased each stockholders proportionate share of total stockholders equity.

Decreased each stockholders proportionate share of total stockholders equity.

Increased each stockholders equity per share of stock (book value).

Decreased each stockholders equity per share of stock (book value).

Had none of the foregoing effects.

3) The corporation paid a cash dividend that had been recorded in the accounts at time of declaration.

Increased the corporations 2018 net income.

Decreased the corporations 2018 net income.

Increased the corporations total retained earnings directly (i.e., not via net income).

Decreased the corporations total retained earnings directly.

Increased the corporations current ratio.

Decreased the corporations current ratio.

Increased each stockholders proportionate share of total stockholders equity.

Decreased each stockholders proportionate share of total stockholders equity.

Increased each stockholders equity per share of stock (book value).

Decreased each stockholders equity per share of stock (book value).

Had none of the foregoing effects.

4) The corporation sold at a profit land and a building that had been idle for some time. Under the terms of the sale, the corporation received a portion of the sales price in cash immediately, the balance maturing at 6-month intervals.

Increased the corporations 2018 net income.

Decreased the corporations 2018 net income.

Increased the corporations total retained earnings directly (i.e., not via net income).

Decreased the corporations total retained earnings directly.

Increased the corporations current ratio.

Decreased the corporations current ratio.

Increased each stockholders proportionate share of total stockholders equity.

Decreased each stockholders proportionate share of total stockholders equity.

Increased each stockholders equity per share of stock (book value).

Decreased each stockholders equity per share of stock (book value).

Had none of the foregoing effects.