Question

hmed purchased 500 shares of Exxon Corporation common stock for $50,000 and 1,000 shares of Google...

hmed purchased 500 shares of Exxon Corporation common stock for $50,000

and 1,000 shares of Google Corporation stock for $250,000. On January 20, 2018, Ahmed

received 100 shares of Exxon as a result of stock dividends. On June 20, Ahmed sold 200 shares

of Exxon for $23,500. Ahmed also received 100 shares of Google Corporation stock as a result

of stock dividend.

Compute: 1) The cost per share of both companies after receiving the stock dividends. 2) Compute

the capital gains/loss that should be included in Ahmed’s tax return for 2019.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding....
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporation’s board of directors declares a 12% stock dividend to be issue on March 2, 2020. On the declaration date, the corporation’s common stock fair market value is $4. On declaration date, the corporation will record: * Debit Stock Dividend $144,000 Debit Stock Dividend $192,000 Credit Stock Dividend $144,000 Credit Stock Dividend $192,000 A Company has 30,000 shares of...
Record the journal entries for the following facts: 500 shares of common stock outstanding. 600 shares...
Record the journal entries for the following facts: 500 shares of common stock outstanding. 600 shares of $100 six percent cumulative preferred stock have been outstanding since 2016. 800 shares of $100 seven percent non-cumulative preferred stock have been outstanding since 2010. The cumulative preferred stock is subordinate to the non-cumulative preferred stock. The common shareholders received a dividend in 2017. Dividends in 2018 were $5,000. Dividends declared by the board of directors were $16,000 in 2019. The dividends were...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock outstanding on January 1, 2019. The tax rate is 20% and the common stock sold at an average market price of $24 per share during the period. The company had the following transactions affecting common shares outstanding during the year: • Issued 50,000 shares of common stock on March 1, 2019 • Repurchased 5,000 shares of common stock on June 1, 2019 • Had...
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company...
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 2 comma 000 shares of​ $100 par​ value, 5​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2018 and 2019. For the common stockholders to receive a dividend in​ 2020, the board of directors must declare dividends in excess​ of: A. $ 20 comma 000$20,000. B. $ 40 comma 000$40,000. C. $ 30 comma 000$30,000. D. $ 10...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The stockholders’ equity of both companies is as follows: Jamison Co. Kelly Co. Common Stock 300,000 200,000 Retained Earnings 400,000 450,000 The income and dividend information for both companies for 2018 is listed below. Jamison Co. Kelly Co. Net Income 145,000 70,000 Dividends 50,000 40,000 Directions: Prepare any necessary consolidation entries for 2018.
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The stockholders’ equity of both companies is as follows: Jamison Co. Kelly Co. Common Stock 300,000 200,000 Retained Earnings 400,000 450,000 The income and dividend information for both companies for 2018 is listed below. Jamison Co. Kelly Co. Net Income 145,000 70,000 Dividends 50,000 40,000 Directions: Prepare any necessary consolidation entries for 2018.
Yes Men, Inc. purchased 10,000 common shares of No Men Corp. common stock at $10 per...
Yes Men, Inc. purchased 10,000 common shares of No Men Corp. common stock at $10 per share on January 1, 2017 with cash. The security pays a $2.00 per share cash dividend at the end of each year. At December 31, 2017, the shares had a fair value of $12 per share and at the end of 2018 the shares had a fair value of $8 per share. Required: 1. Prepare the journal entries to record the purchase of the...
7. On January 2, 2018, Howdy Doody Corporation purchased 10% of Ranger Corporation's common stock for...
7. On January 2, 2018, Howdy Doody Corporation purchased 10% of Ranger Corporation's common stock for $60,000. Ranger's net income for the years ended December 31, 2018 and 2019, were $50,000 and $100,000, respectively. During 2018, Ranger declared and paid a dividend of $50,000. There were no dividends in 2019. On December 31, 2018, the fair value of the Ranger stock owned by Howdy Doody had increased to $80,000. How much should Howdy Doody show in the 2018 income statement...
Orange Office Supply Corporation completed the following stock issuance transactions: January 2, 2018 Issued 5,000 shares...
Orange Office Supply Corporation completed the following stock issuance transactions: January 2, 2018 Issued 5,000 shares of $4 stated value common stock for cash of $20 per share January 31, 2018 Received merchandise inventory with a market value of $46,000 in exchange for 2,000 shares of the $4 stated value common stock when the market price was $22. March 1, 2018 Issued 450 shares of 5%, $20 par value, cumulative, preferred stock for $50 per share July 1, 2019 Board...
Janet acquired 1,000 shares of Rocky common stock in 2010 at a cost of $20,000 ($20...
Janet acquired 1,000 shares of Rocky common stock in 2010 at a cost of $20,000 ($20 per share). On December 1, 2017, Janet receives 100 additional shares of Rocky as the result of Rocky’s optional dividend reinvestment plan. The amount of Janet’s dividend reinvestment to acquire the 100 shares was $3,000. Janet instructs her broker to sell the 100 new shares on August 2, 2018 for $35 per share ($3,500 total sales price). What is the amount and character of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT