Determining gain and net reduction in retained earnings

Reference no: EM13147270

Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2007 for $90,000. On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every ten shares of Pierson held by a stockholder. On that date, when the market price of Hunter was $14 per share, there were 90,000 shares of Pierson outstanding. What gain and net reduction in retained earnings would result from this property dividend?

Reference no: EM13147270

Questions Cloud

Given two downward-sloping and linear demand curves : Given two downward-sloping, linear demand curves, with one showing consumption to be 50 percent greater than the other demand curve at each price, is the demand elasticity the same at any given price?

What would be the resulting freezing point of the solution : if 1.500 g of solute that has a molar mass of 125.0 g were dissolved in 35.00 g of camphor, what would be the resulting freezing point of the solution?

Different types of sampling methods : What are some of the different types of sampling methods that are available to the auditor? How does the auditor decide which method to use? How will the different methods affect the audit?

What is variance on in general population : She samples a group of 100 new fathers and finds that their mean is 64.5. What is the variance on this questionnaire in the general population?

Determining gain and net reduction in retained earnings : What gain and net reduction in retained earnings would result from this property dividend?

Explain water expands when it freezes : water expands when it freezes. How much work is done by 100g of water expanding as it freezes at 0 degrees Celsius and pushes back the wall of a pipe that exerts 1070 atm of pressure?

What is generalized audit software : What is generalized audit software? What are the tasks for which an auditor would use it? What are the advantages and disadvantages of using generalized audit software?

What is the molarity of the diluted solution : If 122 mL of a 1.2 M glucose solution is diluted to 550.0 mL, what is the molarity of the diluted solution?

Self-censorship work in fahrenheit : How prevalent do you think self-censorship is and do you see this type of censorship as a problem or as leading to larger problems? Who is most affected by this this type of censorship?

User Account

All Pages