Rust Pipe Company was established in 1994. Four years later the company went public. At that time, Roberta Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to 8 votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Park, an investor, was considering purchasing shares in Rust Pipe Company. While he knew the founders' shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,700,000 total shares currently outstanding, the original founder's family owns 52,325 shares. What is the percentage of the founder's family votes to Class B votes? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Percentage of votes %

Hi, I’m having a hard time understanding how to arrive at the answer of $6,720 for this problem. I can see the answer on the website but I want to understand how to arrive at this number. Thank you for your help. Problem: Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies:Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income tax expense does a consolidated income statement recognize?         Garrison       Robertson   Separate operating income   $ 300,000     $ 200,000   (includes $50,000 intra-entity gross profit in ending inventory)         Dividends paid     32,000       50,000   Tax…

Ragan Thermal Systems, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling (HVAC) units. Ragan has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its systems. The company is equally owned by Carrington and Genevieve. The original agreement between the siblings gave each 50,000 shares of stock. In the event either wished to sell the stock, the shares first had to be offered to the other at a discounted price. Although neither sibling wants to sell any shares at this time, they have decided they should value their holdings in the company for financial planning purposes. To accomplish this, they have gathered the following information about their main competitors. Ragan Thermal Systems, Inc., Competitors EPS DPS Stock Price ROE Arctic Cooling, Inc. National Heating & Cooling Expert HVAC Corp. Industry average $.82 $.16…

When Jon Batiste incorporated, his corporation issued 150 shares from treasury for $12 per share to him. In 2017, the Jon sold half of his shares to another individual for $14 per share. In 2018, an employee purchased 20 shares from treasury for $16 per share. All shares are of the same class. Which one of the following amounts represents the per-share paid-up capital? $13.33 $11 $13.67 $15

Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…

Common Corp. has been acquiring shares of Fort Co. over the last three years and now owns 42% of the outstanding voting common shares. The remaining 58% of the shares are held by members of the same family. To date, the family has elected all members of the board of directors, and Common has not been able to obtain a seat on the board. Common is hoping to eventually buy a block of shares from an elderly family member and thus one day own 60% of the shares. Common reports under IFRS. How should Common report the investment in Fort in its financial statements?   Question 1 options:   a)  Common should prepare consolidated financial statements with Fort.   b)  Common should use the equity method to account for the investment in Fort.   c)  Common should use the equity method or the cost method to account for the investment in Fort.

Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…

Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end…

After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 370 shares of Valero Energy. At the time of the sale, a share of common stock has a value of $39. Three months later, Valero Energy is selling for $29 a share, and Sandra instructs her broker to cover her short transaction. Total commission to buy and sell the stock were $82. What is her profit for this short transaction?

Katy Kirkland, a former employee of the Sand Dune Resorts, Inc., owned 500 shares of stock (10%) in the company. Kirkland was terminated after five years of employment at Sand Dunes; however, she became part owner of Holiday Isles, Inc., a competitor of Sand Dunes. When Sand Dunes made Kirkland an offer to purchase her stocks, she requested access to Sand Dunes' corporate books to determine the value of her 500 shares of stock. Sand Dunes refused on the basis that Kirkland was a competitor. Does Kirkland have a right to view the books? Why or why not? Propose a solution to the situation.