Weighted-Average Assignment

1) On March 1, 2018, Tiki Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2038. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Tiki common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2018, the fair value of Tiki’s common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Tiki record on March 1, 2018, as paid-in capital from stock warrants?

2) Stone Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $32). The price paid for 800, $1,000 bonds with the warrants attached was $820,000. The market price of the Stone bonds without the warrants was $720,000, and the market price of the warrants without the bonds was $80,000. What amount should be allocated to the warrants?

3) On January 1, 2018, Vermont Corporation had 375,000 shares of its $2 par value common stock outstanding. On March 1, Vermont sold an additional 750,000 shares on the open market at $20 per share. Vermont issued a 20% stock dividend on May 1. On August 1, Vermont purchased 420,000 shares and immediately retired the stock. On November 1, 600,000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2018? .