Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.plain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.
What are the different bases for stock valuation when assets other than cash are received for issued shares of stock?
Explain how underwriting costs, accounting fees and legal fees associated with the issuance of stock should be recorded.
For what reasons might a corporation purchase its own stock.
Discuss the propriety of showing:
a. Treasury stock as an asset
b. "Gain" or "Loss" on sale of treasury stock as additions to or deductions to income
c. Dividends received on treasury stock as income
What features or rights may alter the character of preferred stock?
Dogwood Inc. recently noted that its 4% preferred stock and 4% participating preferred stock, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating stock participates equally with the common stock in any dividends in excess of 4%. What is meant by the terms participating and cumulative?
Where in the financial statements is preferred stock normally reported?