Stock dividend and treasury share
At the beginning of the current year, King Cole, Inc. had 300,000 shares outstanding and total shareholders' equity of $1,200,000. During the year, the company earned profit of $325,000, declared cash dividends of $150,000, distributed a 5% stock dividend of 15,000 shares when the market price of the share was $16 per share, and purchased 3,000 shares of treasury share at a cost of $13 per share. Compute the following at the end of the current year:
(a) Total shareholders' equity:
(b) Number of shares outstanding:
(c) Book value per share:

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The Answer of Stock dividend and treasury share
At the beginning of the current year, King Cole, Inc. had 300,000 shares outstanding and total shareholders' equity of $1,200,000. During the year, the company earned profit of $325,000, declared cash dividends of $150,000, distributed a 5% stock dividend of 15,000 shares when the market price of the share was $16 per share, and purchased 3,000 shares of treasury share at a cost of $13 per share. Compute the following at the end of the current year:
(a) Total shareholders' equity:
(b) Number of shares outstanding:
(c) Book value per share:

Stock Dividend and Treasury Share