feature common to both stock splits and stock dividends is a a transfer to eamed
ID: 2519280 • Letter: F
Question
feature common to both stock splits and stock dividends is a a transfer to eamed capital of a corporation b a reduction in the contributed capital of a corporation c an d that there is no effect on total s 11 A 12. What effect does the issuance of a 3-for-1 stock split have on each of the following? No effect Increase c. Decrease d. Decrease Number ot Shares Increase Decrease No effect Increase 13. The of bonds is most commonly recorded by the b. book value method c market value method 14. For stock appreciation rights, the measurement date for computing compensation is the date a. the rights mature b. the stock's price reaches a predetermined amount. c. of exercise. d. of grant Norton Company issues 10,000 shares of its $5 par value common stock having a fair value of $9.90 per share and 6,000 shares of its $10 par value preferred stock having a fair value of $13.50 per share for a lump sum of $210,000. What amount of the proceeds should be allocated to the common stock? a. $99,000 b. $81,000 c. $82,500 d. $67,500 15.Explanation / Answer
11.C - it will increase equity capital in company.
12 A - it will increase the number but not value.
13 B - most commonly at book value method.
14 D - its related to grant
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