Cost of common stock shares


Question: On Jan 4, 2007 Larsen Co purchased 5,000 shares of Warner Co for 59,500 plus a broker’s fee of USD 1000. Warner Company has a total of 25,000 shares of common stock outstanding & it is presumed the Larsen Co will have significant influence over Warner. During all of the next two years, Warner declared & paid cash dividends of $0.85 per share & its net income was 72,000 & 67,000 for 2007 & 2008 respectively.  The Jan 12, 2009 entry to record the sale of 3,000 shares of Warner Company stock for 39,000 cash should be:

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Finance Basics: Cost of common stock shares
Reference No:- TGS016415

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