Hello: Can someone explain the below? I am trying to understandthe below.
How does net income and assets vary for each of the below?
1) furniture company sold an unused piece of land next door totheir manufacturing facilities. land was purchased for $2M yearsback and sold for $4M. buyer paid in cash.
2) goodwill was over valued by $25M. Company recorded the entryto adjust goodwill to current value
3) company repurchased $5M of common stock and is holding themas treasury stock
4) company split its common stock 2 for 1 (one share split to 2shares)
5) company employees exercised 2000 vested stock options withstrike price of $100 each
6) company wrote off $2M of accounts receivable.
