Reference no: EM133047099
Question - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.
Stockholders' Equity (January 1)
Common stock-$4 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $140,000
Paid-in capital in excess of par value, common stock 100,000
Retained earnings 360,000
Total stockholders' equity $600,000
Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury $164,800
Paid-in capital in excess of par value, common stock 137,200
Retained earnings ($50,000 restricted by treasury stock) 420,000
TOTAL 722,000
Less cost of treasury stock (50,000)
Total stockholders' equity $672,000
The following transactions and events affected its equity during the year.
Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.
July 5 Declared a $0.50 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock's market value was $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10.
Required -
1. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?
2. What is the per share cost of the treasury stock purchased?
3. How much net income did the company earn this year?