Investor Stock Dividend/Splits/Rights-pg 315-317

Question 1

How stock dividend affects investment acct

Answer 1

Stock dividend/split investor only adjusts per share amt not total carrying amount of stock

Question 2

Stock Rights

Answer 2

Option price < market price, stock has value

Value of right determined by allocating cost of investment b/w shares of stock and stock rights based on relative fair market value

Must be available for sale or trading

Question 3

Pg 316

Answer 3

Look at how to calculate market value rights