1. A corporation purchased 420,000 shares of its own stock for $50 per share and then reissues 35,000 of these shares for $27 per share. What is the amount of loss recognized in the income statement from the sale of the stock?
2. Company Zen has 700,000 shares of stock outstanding and declares a 30% stock dividend. Which of the following is false?
A. There is no change in the proportion of the company that each stockholder owns
B. The number of shares outstanding will be -------- after the dividend is paid (what is the amount)
C. Par value of the shares at the time of the dividend will be used to determine the dollar value of the dividend
D. Retained earnings is reduced by the amount of the dividend
E. None of the above
3. Data for Cost T and Cost B are as follows:
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# of Units Produced
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Total Cost
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Cost T
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2
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$ 50
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20
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$500
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200
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$5,000
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# of Units
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Per Unit Cost
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Cost B
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2
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$3,000
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20
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$300
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200
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$30
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Which of the following answer best describes the behavior of Costs A and B?
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A.
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Cost T is variable, Cost B is fixed.
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B.
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Cost T is fixed, Cost B is variable.
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C.
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Both Cost T and Cost B are variable.
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D.
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Both Cost T and Cost B are fixed.
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