Chilloodo Ltd. has decided to redeem 100 preferred shares held by its majority shareholder, Clarence Chill. The 100 shares have a total PUC of $50, a total ACB of $100, and a total FMV of $900. Calculate the amount of the actual dividend that Clarence will receive because of this redemption.
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- Indicate whether the following statements are true or false. If the statementis false, explain why.b. If you own 100 shares in a company’s stock and the company’s stocksplits 2-for-1, then you will own 200 shares in the company followingthe split.ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This distribution is an example of a dividend: a. in stock (stock dividend). b. owned (property dividend). c. in liquidation (liquidating dividend).ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When the shares became due for redemption, the company decided that the whole amount will be redeemed out of a fresh issue of equal amount of equity shares of Rs. 10 each. Show the journal entries in the books of the company.
- Steve Company owns shares of common stock in Dave Corporation. As of November 1, 2012, the stock investment had a book value of $600,000. On November 30th, Steve Company decided to issue a property dividend to stockholders, to distribute the investment securities, which have a market value of $760,000. Steve Company will distribute the securities on December 15th to all stockholders of record as of December 1st. Create the required journal entries for this dividend issuance and payment.Emma Consulting had previously purchased 2,439 shares of treasury stock for $8 per share. Emma then sold 935 shares of the treasury stock for $13 per share. The credit to treasury stock to record the sale would be $_________On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary Shares for land. A few months ago, the land was appraised by Mr. Roy, an independent appraiser, at P 5,000,000. Branded shares are currently traded at the stock exchange at P 300. How much should be debited to land account?
- Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130, and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account upon exercise of the share rights if the rights were not accounted for separately? 2,250,000 3,250,000 3,050,000 5,500,000For numbers 1 to 11, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: 1. Dec. 1, 2020 ‐ Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150. 2. Jan. 1, 2021 ‐ Bought an additional 15,000 shares of X Corp. for a total price of P3,800,000. The original shares are valued at P250 each. On the same date, ABC started providing essential technical information to X and that both corporations have an interchange of managerial personnel. Significant influence is established. There were no changes in the ordinary shares outstanding. 3. Net income reported for the year by the associate was P2,500,000. 4. Dividends declared by X is P2,000,000. It has 90,000 6%, P100‐par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous year. 5. As of Jan. 1, 2021, the fair value of the…For each situation described below, find the following items ignoring any costs other than thepurchase price.a) the total purchase priceb) the total dividend amountif applicable c) the capital gain or lossd) the total returne) the percentage return 1. Mila bought 50 shares of American EagleOutfitters stock on May 23, 2018, paying$22.01 per share. On May 22, 2020, shereceived dividends of $1.10 per share, and thestock price had fallen to $8.95 per share.
- Marco Company issued 1,000 shares with P 5 par to Benn as compensation for 1,000 hours legal services performed. Benn usually bills P160 per hour for legal services. On the date of issuance, the share was trading on a public exchange at 140. By what amount should the share premium account increase as a result of the transaction? Show your solution.Lea Inc, owned 900,000 shares of Mia Corporation stock. On December 31, 2010, when Lea's account "Investment in Common Stock of Mia Corporation" has a carrying value of P5 per share, Lea distributed these shares to its stockholders as a dividend. Lea originally paid P8 for each share. Lea has 300,000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price for a Mia share was P7 on the declaration date and P9 on distribution date. What would be the reduction in Lea's stockholder's equity as a result of the above transactions? Group of answer choices A. P3,600,000 B. P7,200,000 C. P2,100,000 D.P4,500,0006. On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P280,000 P200,000 P400,000 P80,000