ZIP Company owns 39,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK shares in the form of a property dividend. The dividend ratio is one share of PIK for every four shares of ZIP common held by shareholders. ZIP has 156,000 common shares outstanding. On April 15, 2021, the date of declaration, PIK stock had a par of $5 per share, a book value of $11.9 per share, and a fair value of $16.9 per share. Required: Prepare any necessary journal entries. The shares were distributed on May 15, 2021, to stockholders of record on May 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “ZIP Company owns 39,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Kysong, Inc. had beginning inventory of $12300 at March 1, 2022. During the month, the company made purchases of $53300. The inventory at the end of the month is $14190. What is cost of goods sold for the month of March?
Answers (1)
Emily recently quit her job at a major corporation because she saw little chance for advancement. Although she is still searching for a new position, Emily believes the economy is healthy and she hears that several firms are hiring people with her
Answers (1)
Lucia went to a new salon in the area to get her hair cut and colored. However, the stylist cut her hair shorter than she wanted and wouldn't use the bold red color Lucia wanted. As a result, Lucia did not feel good about her purchase.
Answers (1)
What is an investment report that is given to potential investors called? a. a prospectus b. a portfolio c. an annual report d. a report card
Answers (1)
Stephanie is 12 years old and often assists neighbors on weekends by babysitting their children. Calculate the 2018 standard deduction Stephanie will claim under the following independent circumstances (assume that Stephanie's parents will claim her
Answers (1)
New Questions in Business
When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?1) Bad debts expense. 2) Decrease in income taxes payable. 3) Depreciation expense.
Answers (1)
On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $66,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts.
Answers (1)
Which of the following statements accurately describes the efficient market hypothesis? A. Stock prices must go up upon good news, even if the news was expected. B.
Answers (1)
Kramer Enterprises reports year-end information from 2015 as follows: Sales (160,000 units) $960,000 Cost of goods sold 640,000 Gross margin 320,000 Operating expenses 260,000 Operating income $60,000 Kramer is developing the 2016 budget.
Answers (1)
What is purchasing process?
Answers (1)