Question: FASB assumes that if the number of shares issued in
FASB assumes that if the number of shares issued in a stock dividend is large enough to materially reduce the per-share market value, it is inappropriate to record the impact using the firm’s market value. What is the preferred treatment in such cases? Does FASB provide a guideline as to the percentage of previously out- standing shares that would qualify for the treatment?
Answer to relevant QuestionsDoes ASC 505 (stock dividends and stock splits) apply to both issuers and recipients? If not, which party is addressed?The accounts of Pyle Company and its subsidiary, Stern Company, are summarized below as of December 31, 2011:Pyle Company made the following open-market purchase and sale of Stern Company com mon stock: January 2, 2009, ...On January 2, 2010, Pullen Company purchased, on the open market, 135,000 shares of Souza Company common stock for $665,000. At that time, Souza Company had common stock ($2 par value) of $300,000 and retained earnings of ...How does the existence of preferred stock affect the calculation of noncontrolling interest?Weber Company issued five-year, 10% bonds on January 2, 2011, for 105. Par value is $850,000. Interest is paid semiannually on June 30 and December 31. Weber Company is a 90%-owned subsidiary of Fairfield Company. On ...
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