Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2015:
Common stock, par value $20; authorized 75,000 shares;
issued and outstanding 45,000 shares $ 900,000
Paid-in capital in excess of par value 250,000
Retained earnings 300,000
$1,450,000
During 2016 the following transactions occurred relating to stockholders' equity:
3,000 shares were reacquired at $28 per share.
3,000 shares were reacquired at $35 per share.
1,800 shares of treasury stock were sold at $30 per share.
For the year ended December 31, 2016, Oaks reported a net income of $450,000. Assuming Oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2016, balance sheet?
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Ответ:
$1,765,000
Explanation:
The computation of total stockholders' equity is shown below:-
Common stock = $900,000
Paid-in capital in excess of par value = $250,000
Paid-in capital from treasury stock
=1,800 × ($30 -$28)
= $3,600
Retained earnings
= $300,000+ $450,000
= $750,000
Treasury stock
= (1,200 × $28) + (3,000 × $35)
= $138,600
Total stockholders' equity = Common stock + Paid-in capital in excess of par value + Paid-in capital + Retained earnings - Treasury stock
= $900,000 + $250,000 + $3,600 + $750,000 + $138,600
= $1,765,000
Ответ:
C. $250000
Explanation:
Given:
Total assets = $600,000
Liabilities = $160,000
Stockholders’ equity = $540,000.
Fair value of the restaurant assets = $680,000
Alice Company pays = $770,000
Goodwill is when a company looking to acquire another company is willing to pay a price significantly higher than the fair market value of the company’s net assets.
Net Assets = Fair value of assets - Total Liabilities
= $680000 - $160,000
= $520,000
Amount of Goodwill = cash paid - net assets
= $770,000 - $520,000
= $250000