Question: The Prohibition on Income Recognition from trading in the Company s
The Prohibition on Income Recognition from trading in the Company’s Shares your friend has considered stock repurchases. He thinks that it is proper for the company to buy its own shares and subsequently reissue them, recognizing a profit on the reissuance that would be reported on the income statement. How do you respond?
Answer to relevant QuestionsYour friend has developed a stock investing strategy that suggests you should always buy the shares of companies when they split their stock or issue large stock dividends. How do you respond? The Atkinson Data Services Corporation was founded on January 1, 20X1. Preferred stock, no par, cumulative $4 annual dividend per share Issued and outstanding, 1,000,000 shares ........ $ 50,000,000Capital stock, no par, ...Assume that during 2011, Tompkins Financial Corporation repurchased 1,500 of its own shares at an average price of $38.67 per share. Par value was $.10 per share. Assume the shares were originally issued for $28. 1. Prepare ...1. Hubbard Company issued 500,000 shares of common stock, $4 par, for $25 cash per share on March 31, 20X1. Prepare the journal entry. 2. Hubbard Company declared and paid a cash dividend of $1 per share on March 31, 20X2. ...Minnesota Mining and Manufacturing Company (3M) presented the following data in its 2011 annual report:1. During 2011, 3M reacquired 31.3 million treasury shares for $2,701 million. Give the journal entry to record this ...
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