On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 27,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Jackson purchased 14,000 shares of common stock on the open market as treasury stock for $25 per share. Jackson sold 5,000 treasury shares on September 30, 2021, for $27 per share. Net income for 2021 was $170,905. Also outstanding during the year were fully vested incentive stock options giving key executives the option to buy 40,000 common shares at $30. The market price of the common shares averaged $29 during 2021.

Required: Compute Jackson's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 40,000 shares for cash. On January 1, 2021, XYZ issued 10,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2021, XYZ paid the regular annual dividend on the preferred and common stock. Net income for the year was $200,000.

Required: Calculate XYZ's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

Green Corporation, a manufacturing company, hired several executives during 2020. The executives had homes in other cities when they were hired by Green. If the executives were unable to sell those homes, they would be unable to buy replacement homes in Green’s area. Consequently, if the executives were unable to sell their homes within 30 days of listing them for sale, Green bought the homes from the executives for 10% less than the list price. Green immediately put the homes purchased up for resale. Each home Green purchased was ultimately sold at a loss. By the end of 2020, Green did not own any homes, but had suffered losses totaling $125,000 on the sale of houses. Green is uncertain how to report the sale of the homes. Green has a $32,000 short-term capital gain from stock investment transactions during 2020.

Would Green Corporation prefer the $125,000 loss from the sale of the houses to be treated as ordinary or capital? Why?

What is the proper treatment of the $125,000 loss (ordinary or capital)? Provide an explanation of your answer that is sufficiently supported by tax authorities that are properly cited.

Green Corporation has asked you how it might structure future transactions involving transferred executives and their residences to achieve better tax results. Provide an explanation of your answer that is sufficiently supported by tax authorities that are properly cited.

On November 1, 2020, Carla Company adopted a stock-option plan that granted options to key executives to purchase 33,900 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $508,500.

All of the options were exercised during the year 2023: 22,600 on January 3 when the market price was $65, and 11,300 on May 1 when the market price was $74 a share.

Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023.

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,282,148 as follows.

Production records show that 34,600 units were in beginning work in process 30% complete as to conversion costs, 661,100 units were started into production, and 25,300 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Determine the equivalent units of production and the unit production costs for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25.)

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Determine the assignment of costs to goods transferred out and in process.

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Prepare a production cost report for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Following are transactions of The Barnett Company:

general entries for all transcations

In 2020 Our Company had Net Income of $550,000. On 1/1/20, there were 100,000 shares of common stock outstanding. On 4/1/20, we issued 36,000 shares of common stock. On 6/1/20, we issued 24,000 shares of $100 par value, 6% cumulative preferred stock. This preferred stock is convertible into 48,000 shares of common stock. On 9/1/20, we issued $6,000,000 of 4% bonds at par. These bonds are convertible into 48,000 shares of common stock. The marginal tax rate is 25%. In addition, there are 90,000 options outstanding at 12/31/20. Each option entitles the holder to exchange it for 1 share of common stock at an exercise price of $20 per share. The average market price for common stock for 2020 was $50.

required

how much is the basic earnings per share?

how much is diluted earnings per share ?

Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question.

Jan 25. Borrow $52,000 from a bank
Jan 26. Purchase equipment for $48,000 in cash
Jan 27. Issue $85,000 in stock
Jan 28. Buy $15,000 worth of manufacturing supplies on credit
Jan 29. Receive payment of $10,000 owed by a customer

What is the final amount in Total Assets?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).