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The stockholders' equity section of Jarvis Corporation at December 31 is as follows
Instructions
From a review of the stockholders' equity section, as chief accountant, write a memo to the president of the company answering the following questions.
(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $30,000, what is the dividend rate on preferred stock?
(e) If dividends of $60,000 were in arrears on preferred stock, what would be the balance in RetainedEarnings?
Requirement to exclude from the determination of net income gains and losses on transactions in a company's own stock.
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