Questions,Exercises, Problems, and Cases Questions and Exercises 7.1 Common Equity Transactions. Describe the directional effect (increase, decrease, or no effect) of each transaction on the components of the book value of common LO 7-1, LO 7-2 shareholders' equity shown in the chart below a. Issuance of $1 par value common stock at an amount greater than par value b. Donation of land by a governmental unit to a corporation Cash dividend declared d. Previously declared cash dividend paid Property dividend declared and paid f.Large stock dividend declared and issued g. Small stock dividend declared and issued h. 2-for-1 stock split announced and issued i. Stock options granted Recognition of compensation expense on stock options k. Stock options exercised L Stock options expired .Treasury stock acquired (company n. Treasury stock in Transaction m reissued at an amount greater than original acquisition price 0. Treasury stock in Transaction m reissued at an amount less than the original acquisition price p.Restricted stock issued (grant date) Hecognition of compensation expense related to restricted stock Granting of stock appreciation rights to be settled with cash Hecognition of compensation expense on stock appreciation rights t Reacquisition and retirement of common stock at an amount greater than original issue price e. uses the cost method) m. S. C Retained Earnings (use to indicate Total Common income Treasury Stock at Cost Shareholders statement Equity Deferred Additional m effect) Common Stock Compensation Paid-in Capital acquisition cost Question 5 (3 points) Olivia Co. owns 4,000 of the 10,000 outstanding shares of Hobbitt Corp. common stock and exercises significant influence over the company During 2011, Hobbitt earns $80,000 and pays cash dividends of $30,000. If the beginning balance in the investment account was $160,000, the balance at December 31, 2011 should be $160,000 $180,000 $172 000 $192,000 Question 6 (3 points) An analyst can estimate the average total |fe cf depreciable asse s ay SUecxe ucLepedep.bulde