Diamond’s Corporation has an investment in 5,000 shares of Sigmond Company common stock with a cost of $218,000. These shares are used in a property dividend to stockholders of Diamond’s. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to stockholders of record on June 15. The market value per share of Sigmond stock is $63 on May 25, $66 on June 15, and $68 on July 31. The net effect of this property dividend on retained earnings is a reduction of .a. $340,000.
b.$330,000.
c.$315,000.
d.$218,000.
Solved
Show answers
More tips
- F Food and Cooking 10 Reasons Why You Should Avoid Giving Re-Gifts: An Informative Guide...
- S Sport How to wrap boxing hand wraps? Everything you need to know!...
- A Animals and plants 5 Tips for Taking Care of Yews to Keep Them Green and Beautiful...
- H Health and Medicine How to Calm Your Nerves? Expert Tips That Actually Work...
- O Other What is a Disk Emulsifier and How Does it Work?...
- S Sport How to Pump Your Chest Muscle? Secrets of Training...
- C Computers and Internet How to Get Rid of 3pic Infector: Everything You Need to Know...
- S Style and Beauty How to Grow Hair Faster: Real Methods and Advice...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
Answers on questions: Business
- B Business Hugh, a self-employed individual, paid the following amounts during the year: real estate tax on iowa residence: 3,800state income tax: 1,700real estate taxes on...
- B Business Drive-in-style motors follows a traditional manufacturing system. it produces a fixed number of cars every month. it is now planning to switch to a system of manufacturing...
- B Business Leather shopleather shop earned net income of $57,000 after deducting depreciation of $5,000 and all other expenses. current assets decreased by $4,000, and current...
- B Business Acompany that produces a popular brand of pasta decides against increasing its product price. instead, the management chooses to decrease the quantity of packed...
- B Business PLZPLZ PLZ ITS DUE TONIGHT ITS FOR 100 POINTS Remember Anastasia? To refresh your memory, she is a high school science teacher who has the dream of traveling the...
- B Business The Campus Collective company, which creates unique apps for colleges, has recently lost three large university clients that made up 40% of its total revenue. This...
- M Mathematics A=(-1)2 (n – 10) What is the 9th term of the sequence...
- H History The situation in the photograph Let me see you pass was a result of the effect of what?...
- G Geography Aditiya went for a road trip along a straight road from east to west.He started early morning where do you think the sun would be after he reached back hom...
- E English Read the passage and answer the following question(s A Snowy Day by Mona Gedney 1 The icy wind stabbed through Eliza s thick winter coat. It snatched at the scarf...
Ответ:
d.$218,000.
Explanation:
5,000 shares x $68 each = 340,000
cost of the shares (218,000)
net gain 122,000
the company recognize this gain and then it distribute the shares:
sigmond invesmtent 122,000 debit
RE 122,000 credit
RE 340,000 debit
sigmond investment 340,000 credit
reduction for retained earnings:
+122,000 gain
-340,000 shares
218,000
Ответ: