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Homework answers / question archive / 1 Canary Corporation, an accrual method C corporation, uses the calendar year for tax purposes

1 Canary Corporation, an accrual method C corporation, uses the calendar year for tax purposes

Accounting

1 Canary Corporation, an accrual method C corporation, uses the calendar year for tax purposes. Leticia, a cash method taxpayer, is both a shareholder of Canary and the corporation's CFO. On December 31, 2020, Canary has accrued a $75,000 bonus to Leticia. Leticia owns 75% of Canary Corporation's stock and the corporation pays the bonus to Leticia on April 7, 2021. In which year (2020 or 2021) is Canary allowed to deduct the bonus? 

The Balance sheet for a company shows a book value of stockholders equity (book value per share x total shares outstanding) of $23,500,000. Furthermore, the firm's income statement for the year just ended has net income of $500,000, which is $0.25 per share of common stock outstanding. the P/E ratio for firm similar to this company is 20.

Q1. What price would you expect this company share to sell for
Q2. what is the book value per share for this company

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