chapter 15 13e
TRANSCRIPT
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hen a corporation sells treasury stock below its cost! it usually debits the difference between
cost and selling price to "aid-in Capital from Treasury #tock.
"articipating preferred stock requires that if a company fails to pay a dividend in any year! it must
make it up in a later year before paying any common dividends.
Callable preferred stock permits the corporation at its option to redeem the outstanding preferred
shares at stipulated prices.
The laws of some states require that corporations restrict their legal capital from distribution to
stockholders.
The #EC requires companies to disclose their dividend policy in their annual report.
All dividends! e$cept for liquidating dividends! reduce the total stockholders’ equity of a
corporation.
%ividends payable in assets of the corporation other than cash are called property dividends or
dividends in kind.
hen a stock dividend is less than &'-&( percent of the common stock outstanding! a company
is required to transfer the fair value of the stock issued from retained earnings.
#tock splits and large stock dividends have the same effect on a company’s retained earnings
and total stockholders’ equity.
The rate of return on common stock equity is computed by dividing net income by the average
common stockholders’ equity.
The payout ratio is determined by dividing cash dividends paid to common stockholders by net
income available to common stockholders.
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The pre-emptive right of a common stockholder is the right to
share proportionately in corporate assets upon liquidation.
"(a!e p!opo!t*onate+ *n an+ ne# *""ue" o, "toc' o, t(e "a$e ca""%
receive cash dividends before they are distributed to preferred stockholders.
e$clude preferred stockholders from voting rights.
The pre-emptive right enables a stockholder to
"(a!e p!opo!t*onate+ *n an+ ne# *""ue" o, "toc' o, t(e "a$e ca""%
receive cash dividends before other classes of stock without the pre-emptive right.
sell capital stock back to the corporation at the option of the stockholder.
receive the same amount of dividends on a percentage basis as the preferred stockholders.
#&/. 1n a corporate form of business organi2ation! legal capital is best defined as
the amount of capital the state of incorporation allows the company to accumulate over its
e$istence.
t(e pa! aue o, a cap*ta "toc' *""ue)%
the amount of capital the federal government allows a corporation to generate.
the total capital raised by a corporation within the limits set by the #ecurities and E$change
Commission.
#&(. #tockholders of a business enterprise are said to be the residual owners. The term residual
owner means that shareholders
are entitled to a dividend every year in which the business earns a profit.
have the rights to specific assets of the business.
.ea! t(e ut*$ate !*"'" an) unce!ta*nt*e" an) !ece*e t(e .ene,*t" o, ente!p!*"e o#ne!"(*p%
can negotiate individual contracts on behalf of the enterprise.
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hen a corporation issues its capital stock in payment for services! the least appropriate basis
for recording the transaction is the
market value of the services received.
pa! aue o, t(e "(a!e" *""ue)%
market value of the shares issued.
Any of these provides an appropriate basis for recording the transaction.
%irect costs incurred to sell stock such as underwriting costs should be accounted for as
a reduction of additional paid-in capital.
an e$pense of the period in which the stock is issued.
an intangible asset.
a% 1
&
) or
A 6secret reserve6 will be created if
inadequate depreciation is charged to income.
a cap*ta e0pen)*tu!e *" c(a!/e) to e0pen"e%
liabilities are understated.
stockholders3 equity is overstated.
". hich of the following represents the total number of shares that a corporation may issue
under the terms of its charter7
aut(o!*e) "(a!e"
issued shares
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As ordinary earnings shown on the income statement.
A" pa*)-*n cap*ta ,!o$ t!ea"u!+ "toc' t!an"act*on"%
As an increase in the amount shown for common stock.
As an e$traordinary item shown on the income statement.
hich of the following best describes a possible result of treasury stock transactions by a
corporation7
@ay increase but not decrease retained earnings.
@ay increase net income if the cost method is used.
&a+ )ec!ea"e .ut not *nc!ea"e !eta*ne) ea!n*n/"%
@ay decrease but not increase net income.
hich of the following features of preferred stock makes the security more like debt than an
equity instrument7
"articipating
oting
Re)ee$a.e
Boncumulative
The cumulative feature of preferred stock
limits the amount of cumulative dividends to the par value of the preferred stock.
!e3u*!e" t(at )**)en)" not pa*) *n an+ +ea! $u"t .e $a)e up *n a ate! +ea! .e,o!e
)**)en)" a!e )*"t!*.ute) to co$$on "(a!e(o)e!"%
means that the shareholder can accumulate preferred stock until it is equal to the par value of
common stock at which time it can be converted into common stock.
enables a preferred stockholder to accumulate dividends until they equal the par value of the
stock and receive the stock in place of the cash dividends.
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&ULTIPLE CHOICE—Co$putat*ona
Jse the following information for questions ,) and ,&.
"resented below is information related to ?ale Corporation5
Common #tock! 9) par
9/!''!'''
"aid-in Capital in E$cess of "arKCommon #tock
(('!'''
"referred )L&F #tock! 9(' par
&!'''!'''
"aid-in Capital in E$cess of "arK"referred #tock
/''!'''
Detained Earnings
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)!(''!'''
Treasury Common #tock ;at cost<
)('!'''
The total stockholders3 equity of ?ale Corporation is
:;6<==6===%
9!,('!'''. :>6?==6=== @ :>==6=== @ :55=6=== @ :6===6=== @ :165==6=== B :15=6===
9,!)''!'''. :;6<==6===
9,!&('!'''.
The total paid-in capital ;cash collected< related to the common stock is
9/!''!'''.
:>6;5=6===% :>6?==6=== @ :55=6=== :>6;5=6===
9(!&('!'''.
9/!,''!'''.
@anning Company issued )'!''' shares of its 9( par value common stock having a market valueof 9&( per share and )(!''' shares of its 9)( par value preferred stock having a market value of
9&' per share for a lump sum of 9/'!'''. ?ow much of the proceeds would be allocated to the
common stock7
9('!'''
:1;61; 71=6=== :58 @ 7156=== :=8 :55=6===
9&('!''' 7:5=6=== :55=6===8 :>;=6=== :1;61;
9&((!'''
Borton Company issues /!''' shares of its 9( par value common stock having a market value of
9&( per share and *!''' shares of its 9)( par value preferred stock having a market value of 9&'
per share for a lump sum of 9)0&!'''. hat amount of the proceeds should be allocated to the
preferred stock7
9),&!'''
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Treasury #tock for 9)!'''. ?6=== := :<=6=== ?6=== : :16===
T!ea"u!+ Stoc' ,o! :<=6=== an) Pa*)-*n Cap*ta ,!o$ T!ea"u!+ Stoc' ,o! :16===%
Treasury #tock for 9*'!''' and Detained Earnings for 9&)!'''.
Treasury #tock for 9,&!''' and Detained Earnings for 90!'''.
ong Co. issued )''!''' shares of 9)' par common stock for 9)!&''!'''. ong acquired !'''
shares of its own common stock at 9)( per share. Three months later ong sold /!''' of these
shares at 9)0 per share. 1f the cost method is used to record treasury stock transactions! to
record the sale of the /!''' treasury shares! ong should credit
Treasury #tock for 9,*!'''. >6=== :15 :<=6=== >6=== :> :1<6===
Treasury #tock for 9/'!''' and "aid-in Capital from Treasury #tock for 9*!'''.
T!ea"u!+ Stoc' ,o! :<=6=== an) Pa*)-*n Cap*ta ,!o$ T!ea"u!+ Stoc' ,o! :1<6===%
Treasury #tock for 9*'!''' and "aid-in Capital in E$cess of "ar for 9)*!'''.
An analysis of stockholders3 equity of ?ahn Corporation as of 8anuary )! &')'! is as follows5
Common stock! par value 9&'M authori2ed )''!''' sharesM
issued and outstanding 0'!''' shares
9)!''!'''
"aid-in capital in e$cess of par
0''!'''
Detained earnings
,*'!'''
Total
9!/*'!'''
?ahn uses the cost method of accounting for treasury stock and during &')' entered into the
following transactions5
Acquired &!('' shares of its stock for 9,(!'''. #old &!''' treasury shares at 9( per share.
#old the remaining treasury shares at 9&' per share.
Assuming no other equity transactions occurred during &')'! what should ?ahn report at
%ecember )! &')'! as total additional paid-in capital7
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9/(!''' 7:>56=== 8 B 7:56=== ?8 :156===
9'
Colson 1nc. declared a 9)*'!''' cash dividend. 1t currently has *!''' shares of ,F! 9)'' parvalue cumulative preferred stock outstanding. 1t is one year in arrears on its preferred stock.
?ow much cash will Colson distribute to the common stockholders7
:<6===%
9/!'''. <6=== :1== %= :>6===
9))!'''. :1<=6=== B 7:>6=== 8 :<6===
Bone.
"ierson Corporation owned )'!''' shares of ?unter Corporation. These shares were
purchased in &'', for 90'!'''. :n Bovember )(! &'))! "ierson declared a property dividend of
one share of ?unter for every ten shares of "ierson held by a stockholder. :n that date! when
the market price of ?unter was 9)/ per share! there were 0'!''' shares of "ierson outstanding.
hat gain and net reduction in retained earnings would result from this property dividend7
>ain
Bet Deduction in
Detained Earnings
a.
9'
9
)&*!'''
b.
9'
9
)!'''
c%
:>56===
:
;16===
d.
9/(!'''
9
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,(!'''
9
)&(!'''
:n @arch )! &'))! the board of directors declared a )(F stock dividend! and accordingly )!(''
additional shares were issued. :n @arch )! &'))! the fair market value of the stock was 9* per
share. +or the two months ended +ebruary &! &'))! >unkel sustained a net loss of 9)'!'''.
hat amount should >unkel report as retained earnings as of @arch )! &'))7
:5<6===%
9*&!'''. :56=== B :1=6=== B 7165== :<8 :5<6===
9**!'''.
9,&!'''.
The stockholders3 equity of ?owell Company at 8uly )! &')' is presented below5
Common stock! par value 9&'! authori2ed /''!''' sharesM
issued and outstanding )*'!''' shares
9!&''!'''
"aid-in capital in e$cess of par
)*'!'''
Detained earnings
*('!'''
9/!')'!'''
:n August )! &')'! the board of directors of ?owell declared a )(F stock dividend on common
stock! to be distributed on #eptember )(th. The market price of ?owell3s common stock was
9( on August )! &')'! and 9 on #eptember )(! &')'. hat is the amount of the debit to
retained earnings as a result of the declaration and distribution of this stock dividend7
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9''!'''.
:;>=6===%
90)&!'''. 1<=6=== %15 :?5 :;>=6===
9*''!'''.
:n 8anuary )! &')'! %odd! 1nc.! declared a )'F stock dividend on its common stock when the
market value of the common stock was 9&' per share. #tockholders3 equity before the stock
dividend was declared consisted of5
Common stock! 9)' par value! authori2ed &''!''' sharesM
issued and outstanding )&'!''' shares
9)!&''!'''
Additional paid-in capital on common stock
)('!'''
Detained earnings
,''!'''
Total stockholders3 equity
9&!'('!'''
hat was the effect on %odd’s retained earnings as a result of the above transaction7
9)&'!''' decrease
:>=6=== )ec!ea"e
9/''!''' decrease 1=6=== %1= := :>=6===
9&''!''' decrease
:n 8anuary )! &')'! Culver Corporation had ))'!''' shares of its 9( par value common stock
outstanding. :n 8une )! the corporation acquired )'!''' shares of stock to be held in the
treasury. :n %ecember )! when the market price of the stock was 9! the corporation declared
a )'F stock dividend to be issued to stockholders of record on %ecember )*! &')'. hat was
the impact of the )'F stock dividend on the balance of the retained earnings account7
9('!''' decrease
:;=6=== )ec!ea"e
9!''' decrease 1==6=== %1= :; :;=6===
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Bo effect
At the beginning of &'))! +laherty Company had retained earnings of 9&''!'''. %uring the year
+laherty reported net income of 9)''!'''! sold treasury stock at a =gainO of 9*!'''! declared a
cash dividend of 9*'!'''! and declared and issued a small stock dividend of !''' shares ;9)'par value< when the market value of the stock was 9&' per share. The amount of retained
earnings available for dividends at the end of &')) was
:1;=6===.
9&)'!'''. ==6=== @ :1==6=== B :<=6=== B 7?6=== :=8 :1;=6===
9&)*!'''.
9&/*!'''.
@asterson Company has /&'!''' shares of 9)' par value common stock outstanding. %uring
the year @asterson declared a (F stock dividend when the market price of the stock was 9*
per share. Three months later @asterson declared a 9.*' per share cash dividend. As a result of
the dividends declared during the year! retained earnings decreased by
:16==6<==
9,(*!''' 7:>=6=== %=5 :?<8 @ 7:>=6=== 1%=5 :%<=8 :16==6<==
9&*/!*''
9&(&!'''
Guestions )' and )'/ are based on the following information.
ayne Corporation had the following information in its financial statements for the years ended
&')' and &'))5
Cash dividends for the year &'))
9
!'''
Bet income for the year ended &'))
0!'''
@arket price of stock! )&L)L)'
)'
@arket price of stock! )&L)L))
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)&
Common stockholders’ equity! )&L)L)'
)!*''!'''
Common stockholders’ equity! )&L)L))
)!''!'''
:utstanding shares! )&L)L))
)('!'''"referred dividends for the year ended &'))
)(!'''
hat is the payout ratio for ayne Corporation for the year ended &'))7
&/.,F
)*.)F
1=%?K :;6=== 7:G?6=== B :156===8 1=%?K
.*F
hat is the book value per share for ayne Corporation for the year ended &'))7
:1%==
9)).0'
9)). :16;==6=== 15=6=== :1%==
9)'.*,
At the beginning of &'))! ?amilton Company had retained earnings of 9)('!'''. %uring the
year ?amilton reported net income of 9,(!'''! sold treasury stock at a =gainO of 9&,!'''!
declared a cash dividend of 9/(!'''! and declared and issued a small stock dividend of )!(''
shares ;9)' par value< when the market value of the stock was 9' per share. The amount of
retained earnings available for dividends at the end of &')) was5
9)/!(''.
9)*&!'''. :15=6=== @ :56=== B :>56=== B 7165== :?=8 :1?56===
9)(,!(''.
:1?56===%
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@ingenback Company has (*'!''' shares of 9)' par value common stock outstanding. %uring
the year @ingenback declared a (F stock dividend when the market price of the stock was 9/
per share. Two months later @ingenback declared a 9.*' per share cash dividend. As a result of
the dividends declared during the year! retained earnings decreased by5
9*!'''.
9(&!''. 75<=6=== %=5 :>;8 @ 75<=6=== 1%=5 :%<=8 :16<G<6;==
9)!//!'''.
:16<G<6;==%
#ealy Corporation had the following information in its financial statements for the years ended
&')' and &'))5
Cash dividends for the year &'))
9
(!'''
Bet income for the year ended &'))
,&!'''
@arket price of stock! )&L)L)'
)'
@arket price of stock! )&L)L))
)&
Common stockholders’ equity! )&L)L)'
)!'''!'''
Common stockholders’ equity! )&L)L))
)!&''!'''
:utstanding shares! )&L)L))
)''!'''
"referred dividends for the year ended &'))
)'!'''
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hat is the rate of return on common stock equity for #ealy Corporation for the year ended
&'))7
*.(F
*.'F 7:6=== B :1=6===8 7:16===6=== @ :16==6===8 5%<K
5%<K
(.&F
hat is the price-earnings ratio for #ealy Corporation for the year ended &'))7
)*.)
)*., 6=== B :1=6===8 1==6=== :%<
1G%> :1 %< 1G%>
&).)
@ays! 1nc. had net income for &')' of 9&!)&'!''' and earnings per share on common stock of
9(. 1ncluded in the net income was 9''!''' of bond interest e$pense related to its long-term
debt. The income ta$ rate for &')' was 'F. %ividends on preferred stock were 9/''!'''. The
payout ratio on common stock was &(F. hat were the dividends on common stock in &')'7
:>?=6===%
9('!'''.
9/&!(''. ——————————— %56 :>?=6===
9*/(!'''. 7:61=6=== B :>==6===8
"resented below is information related to :render! 1nc.5
%ecember )!
Common stock
&'))
&')'
9 ,(!'''
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9/!'''.
:<?6===%
I)),. Assuming that 9)!''' will be distributed! and the preferred stock is also participating!how much will the common stockholders receive7
9)))!'''.
:G=6===%
90!'''.
9/!'''.
I)). Hoder! 1nc. has ('!''' shares of 9)' par value common stock and &(!''' shares of 9)'
par value! *F! cumulative! participating preferred stock outstanding. %ividends on the preferred
stock are one year in arrears. Assuming that Hoder wishes to distribute 9)(!''' as dividends!
the common stockholders will receive
9'!'''.
9((!'''.
:;=6===%
9)'(!'''.
I))0. @ann Co. has outstanding ('!''' shares of F preferred stock with a 9 )' par value
and )&(!''' shares of 9 par value common stock. %ividends have been paid every year
e$cept last year and the current year. 1f the preferred stock is cumulative and nonparticipating
and 9&('!''' is distributed! the common stockholders will receive
9'.
:1=6===%
9&)'!'''. :5=6=== B 7:5==6=== ;K 8 :1=6===
9&('!'''.
Ite$
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I))0.
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&ULTIPLE CHOICE—CPA A)apte)
A corporation was organi2ed in 8anuary &'', with authori2ed capital of 9)' par value common
stock. :n +ebruary )! &')'! shares were issued at par for cash. :n @arch )! &')'! the
corporation3s attorney accepted ,!''' shares of common stock in settlement for legal services
with a fair value of 90'!'''. Additional paid-in capital would increase on
+ebruary )! &')'
@arch )! &')'
a.
Hes
Bo
b.
Hes
Hes
c.
Bo
Bo
)%
9o
Ye"
:n 8uly )! &')'! Ball Co. issued &!('' shares of its 9)' par common stock and (!''' shares of
its 9)' par convertible preferred stock for a lump sum of 9)&(!'''. At this date Ball3s common
stock was selling for 9&/ per share and the convertible preferred stock for 9) per share. The
amount of the proceeds allocated to Ball3s preferred stock should be
9*&!(''.
:56===%
90'!'''.
9*!,('.
?orton Co. was organi2ed on 8anuary &! &')'! with (''!''' authori2ed shares of 9)' par value
common stock. %uring &')'! ?orton had the following capital transactions5
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8anuary (Kissued ,(!''' shares at 9)/ per share. 8uly &,Kpurchased &(!''' shares at 9)) per
share.
Bovember &(Ksold )(!''' shares of treasury stock at 9) per share.
?orton used the cost method to record the purchase of the treasury shares. hat would be the
balance in the "aid-in Capital from Treasury #tock account at %ecember )! &')'7
9'.
9)(!'''. 156=== : :?=6===
:?=6===%
9/(!'''.
1n &')'! ?obbs Corp. acquired 0!''' shares of its own 9) par value common stock at 9) per
share. 1n &'))! ?obbs issued /!''' of these shares at 9&( per share. ?obbs uses the cost
method to account for its treasury stock transactions. hat accounts and what amounts should
?obbs credit in &')) to record the issuance of the /!''' shares7
Treasury
Additional
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Detained
Common
#tock
"aid-in Capital
Earnings
#tock
a.
9,&!'''
9,'!'''
.%
:6===
:;6===
c.
90*!'''
9/!'''
d.
9*!'''
9&!'''
9/!'''
7>6=== :1;8 :6=== 7>6=== :8 :;6===
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At its date of incorporation! #auder! 1nc. issued )''!''' shares of its 9)' par common stock at
9)) per share. %uring the current year! #auder acquired &'!''' shares of its common stock at a
price of 9)* per share and accounted for them by the cost method. #ubsequently! these shares
were reissued at a price of 9)& per share. There have been no other issuances or acquisitions
of its own common stock. hat effect does the reissuance of the stock have on the following
accounts7
Detained Earnings
Additional "aid-in Capital
a.
%ecrease
%ecrease
b.
Bo effect
%ecrease
c%
Dec!ea"e
9o e,,ect
d.
Bo effect
Bo effect
+armer Corp. owned &'!''' shares of Eaton Corp. purchased in &'', for 9&/'!'''. :n
%ecember )(! &')'! +armer declared a property dividend of all of its Eaton Corp. shares on thebasis of one share of Eaton for every )' shares of +armer common stock held by its
stockholders. The property dividend was distributed on 8anuary )(! &')). :n the declaration
date! the aggregate market price of the Eaton shares held by +armer was 9/''!'''. The entry
to record the declaration of the dividend would include a debit to Detained Earnings of
9'.
9)*'!'''. :>==6=== 7$a!'et aue8
9&/'!'''.
:>==6===%
A corporation declared a dividend! a portion of which was liquidating. ?ow would this distribution
affect each of the following7
Additional
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"aid-in Capital
a.
Bo effect
Bo effect
b.
Bo effect
1ncrease
c.
1ncrease
Bo effect
)%
Inc!ea"e
Inc!ea"e
:n %ecember )! &')'! the stockholders3 equity section of Arndt! 1nc.! was as follows5
Common stock! par value 9)'M authori2ed '!''' sharesM
issued and outstanding 0!''' shares
9
0'!'''
Additional paid-in capital
))*!'''
Detained earnings
),/!'''
Total stockholders3 equity
9
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'!'''
:n @arch )! &'))! Arndt declared a )'F stock dividend! and accordingly 0'' additional
shares were issued! when the fair market value of the stock was 9) per share. +or the three
months ended @arch )! &'))! Arndt sustained a net loss of 9&!'''. The balance of Arndt’sretained earnings as of @arch )! &'))! should be
:156;==%
9)!'''.
9)/!''. :1>6=== B :?6=== B 7G== :1;8 :156;==
9)/&!'''.
I)'. At %ecember )! &')' and &'))! "lank Corp. had outstanding &!''' shares of 9)'' par
value F cumulative preferred stock and )'!''' shares of 9)' par value common stock. At
%ecember )! &')'! dividends in arrears on the preferred stock were 9!'''. Cash dividends
declared in &')) totaled 9'!'''. hat amounts were payable on each class of stock7
"referred #tock
Common #tock
a.
9)*!'''
9)/!'''
b.
9&&!'''
9!'''
c%
:>6===
:<6===
d.
9'!'''
9'
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7:==6=== %=;8 @ :;6=== :>6=== :?=6=== B :>6=== :<6===
&ut*pe C(o*ce An"#e!"—CPA A)apte)
Ite$
An"%
Ite$
An"%
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d
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c
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c
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)&.
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c
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b
)&.
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d
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%
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)&0.
a
a 9/!''!''' R 9/''!''' R 9(('!''' R 9&!'''!''' R 9)!(''!''' S 9)('!'''
9!*''!'''.
b 9/!''!''' R 9(('!''' 9/!('!'''.
b ;)'!''' U 9&(< R ;)(!''' U 9&'< 9(('!'''
;9&('!''' P 9(('!'''< U 9/'!''' 9&)!)&.
c ;/!''' U 9&(< R ;*!''' U 9&'< 9&&'!'''
;9)&'!''' P 9&&'!'''< U 9)0&!''' 9)'/!,&,.
d ;(!''' U 9)< R 9)''!''' 9)0'!'''.
b V;*!''' U 9&(< P V;*!''' U 9&(< R ;0!''' U 9&'<WW U 9&!''' 9)'!0'0.
c V;,!('' U 9&'< P V;(!''' U 9&(< R ;,!('' U 9&'<WW U 9&/'!''' 9)'!0'0.
d ;9*' S 9(&< U &'!''' 9)*'!'''.
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b !''' U 9&' 9*'!'''M !''' U 9, 9&)!'''.
c /!''' U 9)( 9*'!'''M /!''' U 9/ 9)*!'''.
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c 90''!''' R ;&!''' U 9(< S ;('' U 9)'< 90'(!'''.
d ;*,(!''' U 9/< R ;0'!''' U 9,< 9!'!'''.
c 90''!''' R ;!*'' U 9(< S ;&!/'' U 9/< 90'!/''.
a 9)!*('!''' S ;!''' U 9&< S ;!''' U 9(< R ;)!'' U 9'< R 9/('!'''
9)!0*(!'''.
c &'!''' U 9(( 9)!)''!'''.
c &!''' U 9(' U .'* 9*!'''
;9*!''' S 9(!'''< R 9*!''' 9,!'''.
a (!''' U 9)'' U .'( 9&(!'''
;9/(!''' U &< S ;9&(!''' U < 9)(!'''.
a *!''' U 9)'' U .', 9/&!'''
9)*'!''' S ;9/&!''' U &< 9,*!'''.
c ;90'!''' P 9)'< U 9)/ 9)&*!'''
V9)/ S ;90'!''' P )'!'''<W U 0!''' 9/(!''' 9)&*!''' S 9/(!''' 9)!'''.
d ;9&,'!''' P 9)'< U 9)/ 9,!'''
V9)/ S ;9&,'!''' P '!'''<W U &,!''' 9)(!''' 9,!''' S 9)(!''' 9&/!'''.
b ;0''!''' U 9,< S V;9, S 9(< U 0''!'''W 9/!(''!'''.
d ;)'!''' P )'< U 9)/ 9&(&!'''
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c ;9,&!''' S 9)'!'''< P )''!''' 9.*&.
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b
$30, 000 Y ; .04 U $350, 000<
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9' P /''.
9)&'!''' R 9'!''' R ;&/'!''' S 9)'!'''<
a KKKKKKKKKKKKKKKKKKK 9/' P )&.
)&!'''
b 9)(!''' P ;9)&/!''' S 9'!'''< )*.'F.
b 9&!/''!''' P )&'!''' 9&'.''.
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b
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d
*'!''' U 9( U .' U 9,&!''' Z 9*!'''.
I)),.
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F U 9*''!'''
9/!'''
;current year<
,FI U 9*''!'''
/&!'''
;participating<
90'!'''
I9''!''' U F U 9 ,&!'''
;preferred dividends<
9*''!''' U F
/!'''
;common current dividends<
9)!''' S 9)&'!'''
9)&'!'''
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KKKKKKKKKK ,F.
9*''!''' R 9''!'''
I)).
c
9(''!''' U *F
Common #tock
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9'!'''
;current year<
9(''!''' U )'FI
('!'''
;participating<
9'!'''
I9)(!''' S 9'!''' S ;9&('!''' U *F U &< 9,(!'''
9,(!'''
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b ;/!''' U 9)< 9,&!'''M ;/!''' U 9,< 9&!'''.
)&/. c Conceptual.
d 9/''!''' ;market value<.
)&*.
b
Conceptual.
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d
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d
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a 9),/!''' S 9&!''' S ;0'' U 9)< 9)&(!''.
I)'.
c
;9&''!''' U .'< R 9!''' T 9&/!'''
9'!''' S 9&/!''' 9*!'''.