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Tax Free Stock and Shares - Excel

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					                                               Student Name:
                                                       Class:
                                                                Problem 19-03

Requirement 1:
                    WALTERS AUDIO VISUAL, INC.
                          Total Compensation Cost
               ($ in millions, except "per option" amounts)

At January 1, 2009, the estimated value of the award is:
 Estimated fair value per option
 Options granted
 Total compensation


                          WALTERS AUDIO VISUAL, INC.
                                General Journal
                                 ($ in millions)

                            Account                                 Debit       Credit
Requirement 2:
 Compensation expense
  Paid-in capital - stock options
 Deferred tax asset
  Tax expense

Requirement 3:
 Compensation expense
  Paid-in capital - stock options
 Deferred tax asset
  Tax expense

Requirement 4:
 Cash
 Paid-in capital - stock options
   Common stock (40 million shares at $1 par per share)
   Paid-in capital - excess of par
 Income taxes payable
   Deferred tax asset
   Paid-in capital - tax effect of stock options

Requirement 5:
 Compensation expense
  Paid-in capital - stock options



Requirement 6:
 Cash
 Paid-in capital -stock options
  Common stock (40 million shares at $1 par per share)
  Paid-in capital - excess of par
Given Data P19-03:

           WALTERS AUDIO VISUAL, INC.

Common stock options granted   40,000,000 shares
Exercise price                      $8.00 per share
Fair value                          $2.00 per option
Income tax rate                       40%
                     Student Name:
                             Class:
                                      Problem 19-07

         RENN-DEVER CORPORATION
          Earnings (Net Loss) per Share

2007
Net Loss
Shares
Net Loss Per Share

2008
Net Income
Shares at Jan. 1
Retired Shares
Earnings Per Share

2009
Net Income
Shares at Jan. 1
Stock Dividend Adjustment
Earnings Per Share
Given Data P19-07:

                           RENN-DEVER CORPORATION
                           Statements of Retained Earnings

For the Years ended December 31,                 2009      2008       2007
Balance at beginning of year                 $6,794,292 $5,464,052 $5,624,552
Net income (loss)                              3,308,700 2,240,900   (160,500)
Deductions:
 Stock dividend (34,900) shares                  242,000
 Common shares retired, 9/30, (110,000 shares)             212,660
 Common stock dividends                          889,950   698,000          0
Balance at end of year                       $8,971,042 $6,794,292 $5,464,052

At December 31, 2006, paid-in capital consisted of the following:
Common stock, 1,855,000 shares at $1 par       $1,855,000
Paid-in capital - excess of par                 7,420,000
                      Student Name:
                              Class:
                                       Problem 19-08

 LOCK INTERTECHNOLOGY CORPORATION
                Earning Per Share
   ($ in millions, except per share amounts)

2007
Net Income
Preferred Dividends
Shares at Jan. 1
New Shares
Earnings Per Share

2008
Net Income
Preferred Dividends
Shares at Jan. 1
Retired Shares
Stock Split Adjustment
Earnings Per Share

2009
Net Income
Preferred Dividends
Shares at Jan. 1
Stock Dividend Adjustment
New Shares
Earnings Per Share
Given Data P19-08:

                      LOCK INTERTECHNOLOGY CORPORATION
                           Statements of Shareholders' Equity
                For the Years Ended December 31, 2007, 2008, and 2009
                                     ($ in millions)

                                                                                  Total
                                   Preferred Common Additional                   Share-
                                   Stock, $10 Stock, $1 Paid-in Retained         holders'
                                      par        par    Capital Earnings          Equity
Balance at Jan. 1, 2007                              55     495    1,878           2,428
Sale of preferred shares                  10                470                      480
Sale of common shares, 7/1                            9      81                        90
Cash dividend, preferred                                              (1)              (1)
Cash dividend, common                                                (16)             (16)
Net income                                                           290             290
Balance at Dec. 31, 2007                  10         64   1,046    2,151           3,271

Retirement of common shares, 4/1                   (4)      (36)          (20)       (60)
Cash dividend, preferred                                                   (1)        (1)
Cash dividend, common                                                     (20)       (20)
3-for-2 split, 8/12                                30       (30)                       0
Net income                                                                380        380
Balance at Dec. 31, 2008                 10        90       980         2,490      3,570

10% common stock dividend, 5/1                      9        90           (99)         0
Sale of common shares, 9/1                          3        31                       34
Cash dividend, preferred                                                   (2)        (2)
Cash dividend, common                                                     (22)       (22)
Net income                                                                412        412
Balance at Dec. 31, 2009                 10      102      1,101         2,779      3,992
                    Student Name:
                            Class:
                                     Problem 19-10

        DOW STEEL CORPORATION
               Earnings Per Share
(amounts in thousands, except per share amount)

Basic EPS
Net Income
Preferred Dividends
Shares at Jan. 1
New Shares
Shares Retired
Stock Dividend Adjustment
Earnings Per Share

Diluted EPS
Net Income
Preferred Dividends
Shares at Jan. 1
New Shares
Shares Retired
Stock Dividend Adjustment
Exercise of Options
Earnings Per Share
Given Data P19-10:

                      DOW STEEL CORPORATION

Common stock, 12/31/08                            600,000 shares
Preferred stock, 12/31/08                         300,000 shares
Common stock dividends paid, 12/15/09            $400,000
Preferred stock dividends paid, 12/15/09          $75,000
Common shares sold, 2/28/09                        60,000
Shares retired, 7/1/09                              2,000
Net income, 12/31/09                           $2,100,000
Income tax rate                                       40%

Options grated and common share prices:

              Date granted                 Options granted Share price
            December 31, 2007                   8,000         $24
            December 31, 2008                   3,000         $33
            December 31, 2009                   6,500         $31

Average common stock market price, 2009              $32

				
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