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Stockholders' Equity (December 31, 2009) Common stock$6 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $270,000 Paid-in

Stockholders’ Equity (December 31, 2009)
Common stock—$6 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
$270,000
Paid-in capital in excess of par value, common stock 230,000
Retained earnings 340,000

Total stockholders’ equity $840,000


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Stockholders’ Equity (December 31, 2010)
Common stock—$6 par value, 100,000 shares authorized, 53,200 shares issued, 4,000 shares in treasury
$319,200
Paid-in capital in excess of par value, common stockholders' equity (December 31, 2010) k
262,800
Retained earnings ($60,000 restricted by treasury stock) 400,000

982,000
Less cost of treasury stock (60,000
)
Total stockholders’ equity $922,000


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The following transactions and events affected its equity during year 2010.

Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.
July 5 Declared a $0.50 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock’s market value is $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10.

Capitalization of retained earnings for small stock dividend
Cost per share of the treasury stock
How much net income did the company earn during year 2010? (

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