1. Olsson Corporation received a check from its underwriters for $80 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $80 per share.
Which is the correct entry to record the issue of the stock?
2. A company's postretirement health care benefit plan had an APBO of $225,000 on January 1, 2016. During 2016, retiree benefits paid were $36,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $76,000. Plan assets (fair value) increased during the year by $287,500. The amount of the APBO at December 31, 2016, was:
3. Assume the actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $58,000. If the benefits relate to an estimated 25 years of service and four of those years have been completed:
4. Rick Co. had 35 million shares of $3 par common stock outstanding at January 1, 2016. In October, 2016, Rick Co.'s Board of Directors declared and distributed a 3% common stock dividend when the market value of its common stock was $56 per share. In recording this transaction, Rick would:
5. On June 1, 2016, Blue Co. distributed to its common stockholders 300,000 outstanding common shares of its investment in Red, Inc., an unrelated party. The book value on Blue's books of Red's $1 par common stock was $2.10 per share. Immediately after the declaration, the market price of Red's stock was $2.80 per share. In its income statement for the year ended June 30, 2016, what amount should Blue report as gain before income taxes on disposal of the stock? (Do not round your intermediate calculation.)
6. The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).