Question

Current Attempt in Progress For a recent 2-year period, the balance sheet of Marigold Company showed the following stockholders' equity data at December 31 (in millions). 2017 2016 Additional paid-in capital $ 960 $836 Common stock Retained earnings 651 642 7,2005,230 1,540 896 $7.271 $5,812 Treasury stock Total stockholders' equity Common stock shares issued Common stock shares authorized 217 500 35 214 500 28 Treasury stock shares (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, es $3,15.) Par value of common stock $ (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016?

Answer 1

a)
1) Par value of common stock = value of common stock/no of common stock
par value of common stock 2017 = 651000000/217000000 = 3
par value of common stock 2016 = 642000000/214000000 = 3
2) cost per share of treasury stock = value of treasury stock/no of treasury stock
cost per share of treasury stock 2017 = 1540000000/35000000 = 44
cost per share of treasury stock 2016 = 896000000/28000000 = 32
b) stockholder equity section
stockholders equity
common stock $3 par , 217 million				651
additional paid in capital				960
Total paid in capital					1611
Retained earning				7200
less: treasury stock				1540	5660
Total stockholders equity					7271

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