Reference no: EM132600283

Question 1: On May 1, 2020, when the market value of Jay Ltd.'s common shares was $ 15 per share, the corporation had 100,000 no par value common shares issued and outstanding. On this day, Jay declared and issued a 15% common stock dividend. As a result of this stock dividend, Jay's total shareholders' equity

A. did not change.

B. decreased by $ 15,000.

C. decreased by $ 225,000.

D. increased by $ 225,000.

Question 2: At December 31, 2019, Grieger Corp. had 300,000 common shares outstanding. No common shares were issued during 2020; however, on January 1, 2020, Grieger issued 160,000 non-cumulative, non-convertible preferred shares. During 2020, Grieger paid cash dividends of $ 100,000 to the common shareholders and $ 60,000 to the preferred shareholders. Net income for calendar 2020 was $ 450,000. Basic earnings per share for 2020 would be

A. $ 0.20.

B. $ 1.50.

C. $ 1.70.

D. $ 1.30.