Exercise 15-10 For a recent 2-year period, the balance sheet of Marin Company sh

Question

Exercise 15-10

For a recent 2-year period, the balance sheet of Marin Company showed the following stockholders’ equity data at December 31 (in millions).

2017

2016

(a) Answer the following questions.

(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.)

2017

2016

Additional paid-in capital $ 920 $ 825 Common stock 651 639 Retained earnings 7,230 5,310 Treasury stock 1,596 930    Total stockholders’ equity $7,205 $5,844 Common stock shares issued 217 213 Common stock shares authorized 500 500 Treasury stock shares 38 30 Par value of common stock (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? December 31, 2017 December 31, 2016 Cost per share of Treasury stock

Explanation / Answer

1) Par value of common Stock = 651/217 = $3 per share

2) Cost per share of treasury stock

b)

Additional paid in capital

December 31,2017 December 31,2016 Cost per share of treasury stock 1596/38 = $42 per share 930/30 = $31 per share

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