ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 324

Income taxes (45%)

Net income

498,834

$609,686

545,850

$667,150

At year end, the market price of Kingston’s stock was $101 per
share, and Benson’s was $63.50. Assume balance sheet amounts
are representative for the entire year.

6) Hatch Company has two classes of capital stock
outstanding: 8%, $20 par preferred and $5 par common. At
December 31, 2014, the following accounts were included in
stockholders’ equity.

Preferred Stock, 156,500 shares

$ 3,130,000

Common Stock, 2,083,000 shares

10,415,000

Paid-in Capital in Excess of Par—Preferred Stock
201,400