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Question 1 - The charter of Spiggott Ltd. specified a maximum of 25,000 common shares. At the current date, 5,000 shares remain unissued, and 2,000 of the issued shares have been reacquired and are still held by President's Corporation. Fill in the following chart with the number of shares.
Type
Shares
A. Issued
B. Unissued
C. Authorized
D. Outstanding
E. Treasury shares
Question 2 - At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
Question - What are holding gains, and how would holding gains be treated if current cost accounting was applied
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