A) On June 27, 2021, Cara Van Travel distributed to its common shareholders 570,000 outstanding common shares of its inv

[answerhappygod]

A)
On June 27, 2021, Cara Van Travel distributed to its commonshareholders 570,000 outstanding common shares of its investment inConstance Noring Pillows. The book value on Van's books of Noring's$1 par common stock was $3.70 per share. Immediately after thedistribution, the market price of Noring's stock was $4.20 pershare. In its income statement for the year ended June 30, 2023,what amount should Noring report as gain on disposal of the stock(ignore taxes)?
B)
Rick Co. had 32 million shares of $1 par common stockoutstanding at January 1, 2021. In October 2021, Rick Co.'s Boardof Directors declared and distributed a 1% common stock dividendwhen the market value of its common stock was $55 per share. Inrecording this transaction, Rick would:
Multiple Choice
Credit common stock for $17.60 million.
Debit retained earnings for $17.60 million.
None of these answer choices are correct.
Credit paid-in capital—excess of par for $17.60 million.