Based on the following summary of shareholders' equity accounts, answer the following questions.No dividends were paid during the Year 1 and Year 2.
$\begin{array}{lll}& \text {December 31 , Year 1 }& \text {December 31, Year 2 }\
\text { Common stock, } \$ 5 \text { par value } & \$ 1,000,000 & \$ 1,250,000 \
\text { Additional paid-in capital } & 1,500,000 & 2,000,000 \
\text { Net unrealized loss on investment } & &\
\text { in marketable equity securities } & (100,000) & (150,000) \
\text { Retained earnings } & 2,000,000 & 2,500,000 \
\text { Less: Cost of treasury shares } & (200.000) & (224,000)\
\text { Total shareholders' equity } & \$ 4.200 .000 & \$ 5.376 .000
\end{array}$
a. What is net income during Year 2?
b. How many additional common shares were issued in Year 2?
c. What was the cost per share of the treasury stock acquired during Year 2? 2,000 additional shares were acquired during the year.
d. What price was paid for the additional common shares issued in Year 2?
e. What happened to the portfolio of long-term marketable equity securities?

Question

Based on the following summary of shareholders' equity accounts, answer the following questions.No dividends were paid during the Year 1 and Year 2.
 $\begin{array}{lll}& \text {December 31 , Year 1 }& \text {December 31, Year 2 }\
\text { Common stock, } \$ 5 \text { par value } & \$ 1,000,000 & \$ 1,250,000 \
\text { Additional paid-in capital } & 1,500,000 & 2,000,000 \
\text { Net unrealized loss on investment } & &\
\text { in marketable equity securities } & (100,000) & (150,000) \
\text { Retained earnings } & 2,000,000 & 2,500,000 \
\text { Less: Cost of treasury shares } & (200.000) & (224,000)\
\text { Total shareholders' equity } & \$ 4.200 .000 & \$ 5.376 .000
\end{array}$
a.	What is net income during Year 2?
b.	How many additional common shares were issued in Year 2?
c.	What was the cost per share of the treasury stock acquired during Year 2? 2,000 additional shares were acquired during the year.
d.	What price was paid for the additional common shares issued in Year 2?
e.	What happened to the portfolio of long-term marketable equity securities?

Quizplus · Accepted Answer

The Answer of Based on the following summary of shareholders' equity accounts, answer the following questions.No dividends were paid during the Year 1 and Year 2.
 $\begin{array}{lll}& \text {December 31 , Year 1 }& \text {December 31, Year 2 }\
\text { Common stock, } \$ 5 \text { par value } & \$ 1,000,000 & \$ 1,250,000 \
\text { Additional paid-in capital } & 1,500,000 & 2,000,000 \
\text { Net unrealized loss on investment } & &\
\text { in marketable equity securities } & (100,000) & (150,000) \
\text { Retained earnings } & 2,000,000 & 2,500,000 \
\text { Less: Cost of treasury shares } & (200.000) & (224,000)\
\text { Total shareholders' equity } & \$ 4.200 .000 & \$ 5.376 .000
\end{array}$
a.	What is net income during Year 2?
b.	How many additional common shares were issued in Year 2?
c.	What was the cost per share of the treasury stock acquired during Year 2? 2,000 additional shares were acquired during the year.
d.	What price was paid for the additional common shares issued in Year 2?
e.	What happened to the portfolio of long-term marketable equity securities?

Based on the Following Summary of Shareholders' Equity Accounts, Answer