Need Help 6. On March 2, 2014, Burton Corporation issued 4,000 shares of 6 perce

Question

Need Help

6. On March 2, 2014, Burton Corporation issued 4,000 shares of 6 percent cumulative $100 par value preferred stock for $434,000. Each preferred share carried one nondetachable stock warrant which entitled the holder to acquire, at $17, one share of Burton $10 par common stock. On March 2, 2014, the market price of the preferred stock (without warrants) was $90 per share and the market price of the stock warrants was $15 per warrant. The amount credited to Paid-In Capital in Excess of Par-Preferred by Burton on the issuance of the stock was

                A             $62,000

                B             $0

                C             $34,000

                D             $8,000

7. On January 2, 2014, Sanders Corporation granted stock options to key employees for the purchase of 60,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2016, by grantees still in the employ of the company. The fair value of the option determined by an option pricing model is $7 at the grant date. Sanders plans to distribute up to 60,000 shares of treasury stock when options are exercised. The treasury stock was acquired by Sanders at a cost of $28 per share and was recorded under the cost method. Assume that no stock options were terminated during the year. How much should Sanders charge to Compensation Expense for the year ended December 31, 2014?

                A             $210,000

                B             $90,000

                C             $420,000

                D             $180,000

8. On November 10, Linden Co. split its stock 5-for-2 when the market value was $55 per share. Prior to the split, Linden had 300,000 shares of $15 par value stock. After the split, the par value of the stock was

                A             $26

                B             $3

                C             $15

                D             $6

9. On August 31, 2014, Steinway Company purchased the following available-for-sale securities: Security Cost Market Value December 31, 2014 G $ 96,000 $ 84,000 H 152,000 158,000 I 162,000 146,000 On December 31, 2014, Steinway reclassified its investment in security I from available-for-sale securities to trading securities. What total amount of loss on these securities should be included in Steinway' income statement for the year ended December 31, 2014?

                A             $22,000

                B             $16,000

                C             $0

                D             $28,000

10. During 2013, Rubble Company purchased marketable equity securities as a short-term investment and classified them as trading securities. The cost and market value at December 31, 2013, were as follows: Security Cost Market Value December 31, 2013 X 200 shares $8,400 $ 10,200 Y 2,000 shares 51,000 45,900 Z 4,000 shares 94,500 88,500 Total $153,900 $144,600 Rubble sold 1,000 shares of Company Y stock on March 16, 2014, for $24 per share, incurring $1,300 in brokerage commissions and taxes. On the sale, Rubble should report a realized loss of

                A             $2,300

                B             $1,550

                C             $2,800

                D             $0

Explanation / Answer

6.C $34,000

7. A $210,000

8. C $15

9. B $16,000

10. C $2,800

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.