ACC 304 All Assignments ACC 304 All Assignments | Page 24

(b)
Earnings per share of common stock
$
per share
(c)
Book value per share of common stock
$
per share
(d)
Payout ratio of common stock
%
(e)
Return on common stock equity
%
4) Sisco Co. purchased a patent from Thornton Co. for $620,000 on
July 1, 2012. Expenditures of $119,000 for successful litigation in
defense of the patent were paid on July 1, 2015. Sisco estimates that
the useful life of the patent will be 20 years from the date of
acquisition.
Prepare a computation of the carrying value of the patent at
December 31,
2015.
5) On August 31, Latty Co. partially refunded $401,000 of its
outstanding 10% note payable made one year ago to Dugan State Bank
by paying $401,000 plus $40,100 interest, having obtained the
$441,100 by using $126,240 cash and signing a new one-year $346,000
note discounted at 9% by the bank.