On June 1, 2009, Blue Co

question 42

Multiple Choice

On June 1, 2009, Blue Co. distributed to its common stockholders 200,000 outstanding common shares of its investment in Red, Inc., an unrelated party. The carrying amount on Blue's books of Red's $1 par common stock was $2 per share. Immediately after the declaration, the market price of Red's stock was $2.50 per share. In its income statement for the year ended June 30, 2009, what amount should Blue report as gain before income taxes on disposal of the stock?

• A)$ 0.
• B)$100,000.
• C)$400,000.
• D)$500,000 Property dividends are recorded at the fair value of the property distributed, with any gain or loss being recognized in the current period.$2.50 - 2.00 = $.50 200,000 = $100,000.

Recognize the importance of measuring the success of PR and internal communications campaigns.

Assess the role of storytelling and visual communication in engaging the audience.

Understand the role and benefits of PR in fostering a healthy corporate culture and communicating company values.

Comprehend the goals, tasks, and increasing necessity of employee relations specialists within organizations.

---

Definitions:

Exempted Offerings

Securities offerings that are released from the registration requirements with the SEC, generally due to their limited nature.

Shareholder Proposals

Suggestions or demands made by shareholders for consideration and action by the company's board of directors.

Rule 10b-5

A regulation enacted by the Securities and Exchange Commission dealing with fraud and manipulation in the securities markets.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.