TDF Co. incorporated in 2010. No additional shares of common or preferred stock
ID: 2598075 • Letter: T
Question
TDF Co. incorporated in 2010. No additional shares of common or preferred stock have ben since incorporation. The following information relates to TDF as of December 31, 2014 Balance Sheet Information issu Common Stock, par S1 Additional Paid-in Capital-Common stock Preferred Stock, non-cumulative, par ss, 10% dividend rate Additional Paid-in Capital - Preferred stock Treasury Stock-2,180 shares of common stock repurchased during S 216.000 3,024,000 147,000 58,800 26,160 2013 Beginning Retained Earnings balance (as of January 1, 2014) 180.510 nc Net Income S 110.919 During 2014, TDF deelared and paid a dividend of S57,464. The only other dividend TDF has ever issued was a $44,100 cash dividend declared and paid during 2012 A. What should be the reported balance in retained earnings as of December 31.2014 (2 points) What is the average cost per share of treasury stock on hand as of December 31, 20142 B. per share (2 points)Explanation / Answer
A)
Reported Balance in retained earnings as of December 31,2014 = 180510 + 110919 - 57464 = 233965
B)
Average cost per share of treasury stock = 26160/2180 = 12
C)
Outstanding shares of common stock as on December 31,2014 = 216000 - 2180 = 213820
D)
Dividend paid to preferred stock holders = 147000*10% = 14700
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