Donna owns 800 shares of common stock in macaw corporation
Course:- Accounting Basics
Reference No.:- EM13601523

Assignment Help >> Accounting Basics

Donna owns 800 shares of common stock in Macaw Corporation (adjusted basis of $40,000). She receives a 5% stock dividend when the stock is selling for $60 a share.

a. How much gross income must Donna recognize because of the stock dividend?
b. What is Donna's basis for her 840 shares of stock?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
With managing cash we don't want to give one person control over enough functions in the business where they have the ability to take cash and also cover up the fact that th
The balance sheet reported a begin n in g balance o f Rs. 23,000 in Accounts Receivable and an endin g balance o f Rs . 16,000 . The inco me statement reported. Sales Revenu
Are you agree or disagree regarding the paragraph on payroll which is a part of auditing-Monetary compensation is a leading cause for the common practice of verifying total of
Prepare a partial income statement through gross profit under the average, FIFO and LIFO methods. Round average cost per unit to four decimal places and all other amounts
Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?
Mark Trucks Limited has some idle capacity in its plant, which is restored by accepting order from other automobiles industries. The company has finished assembly of150 truc
Determine the earnings per share of common stock, assuming income before bond interest and income tax is $750,000. Enter answers in dollars and cents, rounding to the nearest
Calculate Corrigan's ROE as well as the industry average ROE using the DuPont equation. From this analysis, how does Corrigan's financial position compare with the industry