FAR

Question 1

RE Formula

Answer 1

Net Income/Loss
-Dividend declared (cash , property and stock)
+/- Prior period adjustments
+/- Accounting Changes reported retroactively
+ Adjustment from quasi-reorganization
=RE

Question 2

Liquidating dividend

Answer 2

Amount in excess of RE ( eg. Dividend declared 400K , RE 300K, Liquidating Div 100K)

Question 3

APIC

Answer 3

1) Capital in excess of per
2) Sale of TS at gain
3) quasi-reorganization
4) issuance of liquidating dividends
5) conversion of bonds
6) the declaration of small stock dividends.

Question 4

Preferred Stock convertible to CS doesn’t count as Common Stock

Answer 4

yes

Question 5

Property Dividends

Answer 5

On the date of declaration property dividend should be restated to fair value and any gain or loss should be recognized in Income