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b. $500,000. c. $200,000. d. None of these. e. $300,000. Correct. The amount credited to the Paid-In Capital in Excess of Par Value—Common is computed as follows: 10,000 shares times($50−$20)=$300,000.FeedbackThe correct answer is: $300,000.Question 5CorrectMark 10.00 out of 10.00
Flag questionQuestion textYou are given the following information: Capital Stock, $80,000 ($80 par); Paid-In Capital in Excess of Par Value—Common, $200,000; and Retained Earnings, $400,000. Assuming only oneclass of stock, the book value per share is:Select one:a. None of the above. b. $280. c. $400. d. $680. Correct. The book value of common stock is computed as follows: Total book value of stockholders'equity ($80,000 + $200,000 + $400,000) = $680,000; Total shares ÷1,000 Book value per share $ 680e. $80. FeedbackThe correct answer is: $680.Question 6CorrectMark 10.00 out of 10.00Flag questionQuestion textThe advantages of incorporation include: (Mark all that apply)
Select one or more:a. Minimal accounting requirements. b. Limited liability. c. Separation of owners and entity. d. Continuous existence of the entity. e. Very few government regulations to follow. f. Double Taxation. g. Easy transfer of ownership. FeedbackThe correct answers are: Easy transfer of ownership., Limited liability., Continuous existence of the entity., Separation of owners and entity.Question 7CorrectMark 10.00 out of 10.00Flag questionQuestion textBevins Company issued 10,000 shares of $20 par value common stock at $24 per share. Two years later the company had $35,000 in Retained Earnings. At that time the company reacquired 1,000 shares of its own stock at a cost of $30 per share. What is the balance in Total Stockholder's Equity?Select one:
a. $245,000 (24*10,000)+35,000-(1,000*30)b. $240,000 c. $210,000 d. $275,000 FeedbackThe correct answer is: $245,000Question 8IncorrectMark 0.00 out of 10.00Flag questionQuestion textOn January 1, a shareholder purchased 20 shares of stock in ABC company for $14 per share. OnJune 30, the company paid a $1.50 dividend per share. On December 31, the shareholder sold all the shares for $16 per share. What is the overall Economic Rate of Return for this investment?Select one:a. 10.71% b. 17.85% c. 25.00% d. 21.87% FeedbackThe correct answer is: 25.00%
Question 9CorrectMark 10.00 out of 10.00Flag questionQuestion textABC issued 12,000 shares and subsequently reacquired 2,000 shares as treasury stock. The following year, ABC Corporation declared a regular quarterly dividend of $2 per share. What would be the total amount of the dividend expense?Select one:a. $4,000. b. $24,000. c. $20,000. Correct. The total amount of dividends is computed as follows: Total Outstanding shares at declaration: (12,000 – 2,000) shares 10,0000 Dividend per share X $2; Total dividend amount $20,000d. $28,000. FeedbackThe correct answer is: $20,000.Question 10CorrectMark 10.00 out of 10.00Flag questionQuestion text
You are given the following information: Capital Stock, $80,000 ($80 par); Paid-In Capital in Excess of Par Value—Common, $200,000; and Retained Earnings, $400,000. Assuming that there is only one class of stock and that all stock was issued on the same day, what was the sales price of each share?