Question 49 On January 1, 2013, Shaw Co. sold land that cost $420,000 for $560,0

Question

Question 49

On January 1, 2013, Shaw Co. sold land that cost $420,000 for $560,000, receiving a note bearing interest at 10%. The note will be paid in three annual installments of $225,190 starting on December 31, 2013. Because collection of the note is very uncertain, Shaw will use the cost-recovery method. How much revenue from this sale should Shaw recognize in 2013?

$56,000

$0

$42,000

$140,000

Question 50

Layne Corporation had the following information in its financial statements for the years ended 2012 and 2013:

Cash dividends for the year 2013                           $8,000

Net income for the year ended 2013                        83,000

Market price of stock, 12/31.12                                 10

Market price of stock, 12/31/13                                 12

Common stockholders%u2019 equity, 12/31/12                  1,600,000

Common stockholders%u2019 equity, 12/31/13                  1, 800,000

Outstanding shares, 12/31/13                                   180,000

Preffered dividends for the year ended 2013             15,000

what is the book value per share for Layne Corporation for the year ended 2013?

a. $9.44

b. $9.92

c. $8.89

d. $10.00

$56,000

$0

Explanation / Answer

49.

Until the cost of goods sold, $420,000, is collected, no profits are recognized. Hence ans is $0

50.

Book value per share of layne corp. is $10

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