What is the effect of property dividends

Assignment Help Accounting Basics
Reference no: EM133094937

Question - Harmen Industries purchased 20,000 common shares of Fancy Corporation for $180,000 in 2012.

On November 25, 2019, Harmen declares a property dividend in which one share of Fancy will be distributed for every ten shares of Harmen.

At that time, the market price of Fancy is $28 per share.

If there are 180,000 shares of Harmen outstanding, What is the effect of property dividends on Harmen's retained earnings?

Reference no: EM133094937

Questions Cloud

Software implementation deliverables : There are deliverables associated with coding, testing, and installation. Discuss the deliverables for coding, testing, and installation
Prepare the two reconciling journal entries : Prepare the two reconciling journal entries needed to put the County of Middlesex's financial statement on a full accrual basis
Calculate the net income for the period : Assuming that other operating expenses were $600 and the income tax rate is 20 percent, calculate the net income for the period using your selected method
How many units are budgeted to be sold : If each pound of raw material costs $2.00 from the supplier, how many units are budgeted to be sold during the first quarter of 2011
What is the effect of property dividends : If there are 180,000 shares of Harmen outstanding, What is the effect of property dividends on Harmen's retained earnings
Determine the interest expense : The proceeds from the bonds are $19,604,144. Using straight-line amortization, determine the interest expense for 2020
Calculate the residual income of each distribution : Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system
Information Security Metrics : Make a list of at least ten information security metrics that could be collected for a small Internet commerce company with 10 employees.
Calculate grand canyon working capital cycle : Grand Canyon Bhd, a manufacturing entity, has the following balances at 30 April 2021: Calculate Grand Canyon working capital cycle

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare general journal entries to record transactions

5,000 shares of preferred stock are sold for cash at $120 per share. Prepare the general journal entries necessary to record these transactions

  Calculate the amount of goodwill at the date of acquisition

Total shareholders' equity $750 000 and Share capital $450 000. Calculate the amount of goodwill at the date of acquisition

  What is the present value of the amount for kenneth

At the end of each of the next twenty years. Assuming an appropriate interest rate is 10% compounded annually, what is the present value of this amount?

  Prepare the adjusting journal entries

Frederick Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30.

  Colson corp had 600000 net income in 2013 on january 1 2013

colson corp. had 600000 net income in 2013. on january 1 2013 there were 200000 shares of common stock outstanding. on

  What is the effect of a stock dividend on stockholders

Greenwood Corporation has paid 60 consecutive quarterly cash dividends. What is the effect of a stock dividend on a corporation's stockholders' equity accounts

  Record the write-off to uncollectible accounts

Record the write-off to uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required")

  What can people learn about stewardship

What can people learn about stewardship from Statement of Cash Flows? What insights does it provide that people can't learn from the other 3 Financial Statement

  How much dividend income does skip inc have

Flash Co., distributed $40,000 to Skip Inc., a 25 percent shareholder. How much dividend income does Skip Inc. have

  What is the purchase price for this asset

You plan to sell it in 3 years and believe that you will be able to sell it a 5% cap rate as well. What is the purchase price for this asset

  How much will Huang beneficiary receive as a death benefit

If he commits suicide on June 13th of this year, how much will Huang's beneficiary receive as a death benefit from this contract

  What is the sustainable growth rate

Last year Lakesha's Lounge Furniture Corporation had an ROE of 19.0 percent and a dividend payout ratio of 28 percent. What is the sustainable growth rate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd