Question
In: Accounting
Presented below is information related to Starr Company. 1. Net Income [including a discontinued operations gain...
Presented below is information related to Starr Company.
| 1. | Net Income [including a discontinued operations gain (net of tax) of $84,000] | $258,500 | ||||
| 2. | Capital Structure | |||||
| a. | Cumulative 5% preferred stock, $100 par, 6,100 shares issued and outstanding | $610,000 | ||||
| b. | $10 par common stock, 74,000 shares outstanding on January 1. On April 1, 40,000 shares were issued for cash. On October 1, 16,000 shares were purchased and retired. | $1,000,000 | ||||
| c. | On January 2 of the current year, Starr purchased Oslo Corporation. One of the terms of the purchase was that if Oslo net income for the following year is $244,000 or more, 50,000 additional shares would be issued to Oslo stockholders next year. Oslo’s net income for the current year was $2,600,000. | |||||
| 3. | Other Information | |||||
| a. | Average market price per share of common stock during entire year | $30 | ||||
| b. | Income tax rate | 30% | ||||
Compute weighted average shares outstanding.
| Weighted average shares outstanding |
Compute earnings per share for the current year. (Round answers to 2 decimal places, e.g. 52.75.)
| Basic earnings per share | $ | |
| Diluted earnings per share | $ |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Presented below is information related to Starr Company. 1. Net Income [including a discontinued operations gain...
Presented below is information related to Starr Company.
1.
Net Income [including a discontinued operations
gain (net of tax) of $117,000]
$325,500
2.
Capital Structure
a.
Cumulative 5% preferred stock, $100 par, 6,300 shares issued
and outstanding
$630,000
b.
$10 par common stock, 74,000 shares outstanding on January 1.
On April 1, 40,000 shares were issued for cash. On October 1,
16,000 shares were purchased and retired.
$1,000,000
c.
On January 2 of the current year, Starr purchased Oslo
Corporation....
Presented below is information related to Starr Company. 1. Net Income [including a discontinued operations gain...
Presented below is information related to Starr
Company.
1.
Net Income [including a discontinued operations
gain (net of tax) of $66,000]
$221,000
2.
Capital Structure
a.
Cumulative 5% preferred stock, $100 par, 5,800 shares issued
and outstanding
$580,000
b.
$10 par common stock, 74,000 shares outstanding on January 1.
On April 1, 40,000 shares were issued for cash. On October 1,
16,000 shares were purchased and retired.
$1,000,000
c.
On January 2 of the current year, Starr purchased Oslo
Corporation....
Presented below is information related to Starr Company. 1. Net Income [including a discontinued operations gain...
Presented below is information related to Starr
Company.
1.
Net Income [including a discontinued operations
gain (net of tax) of $112,000]
$318,500
2.
Capital Structure
a.
Cumulative 5% preferred stock, $100 par, 6,100 shares issued
and outstanding
$610,000
b.
$10 par common stock, 74,000 shares outstanding on January 1.
On April 1, 40,000 shares were issued for cash. On October 1,
16,000 shares were purchased and retired.
$1,000,000
c.
On January 2 of the current year, Starr purchased Oslo
Corporation....
Presented below is information related to the operations of Phantom Corporation.  
Presented below is information related to the operations of
Phantom Corporation.
December
2015
2014
Cash $125,000 $ 80,000
Accounts
receivable 110,000
94,000
Inventory 60,000
43,000
Prepaid
expenses 30,000
42,000
Land 70,000
40,000
Buildings 200,000
200,000
Accumulated
depreciation—
buildings (34,000)
(16,000)
Equipment 116,000
160,000
Accumulated
depreciation—
equipment (30,000)
(40,000)
Total $647,000
$603,000
Accounts
payable $ 80,000
$ 55,000
Bonds
payable 0
200,000
Common
stock 400,000
200,000
Retained
earnings
167,000
148,000
Total $647,000
$603,000
Additional information:
(a) The...
B. Presented below is information related to Dublin Company for 2018. Unrealized gain on non-trading equity...
B. Presented below is information related to
Dublin Company for 2018.
Unrealized gain on non-trading equity securities, net of
tax
€200,000
Retained earnings balance, January 1,
2018
1,200,000
Sales
revenue
35,000,000
Unearned sales
revenue
150,000
Prepaid
expense
80,000
Freight-In
10,000
Cost of goods
sold
25,000,000
Purchase
Discounts
15,000
Interest
expense
100,000
Selling and administrative
expenses
5,700,000
Write-off of
goodwill
1,200,000
Income taxes for
2018
1,360,000
Dividend
revenue
100,000
Gain on the disposition and operations of the wholesale division
(Gain before...
Presented below is information related to Crane Company: 1. The company is granted a charter that...
Presented below is information related to Crane
Company:
1.
The company is granted a
charter that authorizes issuance of 15,000 shares of $100 par value
preferred stock and 40,000 shares of no-par common stock.
2.
7,500 shares of common stock
are issued to the founders of the corporation for land valued by
the board of directors at $280,000. The board establishes a stated
value of $10 a share for the common stock.
3.
5,500 shares of preferred
stock are sold...
(1) Equity transactions. Presented below is information related to Chen Company: (1) The company is granted...
(1) Equity transactions.
Presented below is information related to Chen Company:
(1) The company is granted a charter that authorizes issuance of
20,000 shares of $45 par value preferred stock and 50,000 shares of
no-par common stock.
(2) 12,500 shares of common stock are issued to the founders of
the corporation for land valued by the board of directors at
$225,000. The board establishes a stated value of $6 a share for
the common stock.
(3) 7,250 shares of preferred...
Presented below is information related to Sunland Company. 1. On July 6, Sunland Company acquired the...
Presented below is information related to Sunland Company.
1. On July 6, Sunland Company acquired the plant
assets of Doonesbury Company, which had discontinued operations.
The appraised value of the property is:
Land
$200,000
Buildings
600,000
Equipment
400,000
Total
$1,200,000
Sunland Company gave 12,000 shares of its $100 par value common
stock in exchange. The stock had a market price of $168 per share
on the date of the purchase of the property.
2. Sunland Company expended the following amounts...
Presented below is information related to Blossom Company. 1. On July 6, Blossom Company acquired the...
Presented below is information related to Blossom Company.
1. On July 6, Blossom Company acquired the plant assets of
Doonesbury Company, which had discontinued operations. The
appraised value of the property is:
Land $372,000
Buildings 1,116,000
Equipment 744,000
Total $2,232,000
Blossom Company gave 12,500 shares of its $100 par value common
stock in exchange. The stock had a market price of $171 per share
on the date of the purchase of the property.
2. Blossom Company expended the following amounts...
1. Compute the impact on the company’s overall net operating income if the company discontinued one...
1. Compute the impact on the company’s overall net operating
income if the company discontinued one of its departments based on
the following facts: The contribution margin in the department is
$50,000 per year. Fixed expenses charged to the department are
$65,000 per year. It is estimated that $40,000 of these fixed
expenses could be eliminated if the department is discontinued.
2. Compute the effect, if any, on the company’s overall net
operating income if the company accepts a special...
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