A312 final

statement of comprehensive income as other comprehensive income

a reclassification adjustment is reported in the

should be ignored in all earnings per share calculations

antidilutive securities

$110,000

colson inc. declared a $230,000 cash dividend. it currently has 12,000 shares of 5%, $100 par value cumulative preferred stock outstanding. it is one year in arrears on its preferred stock. how much cash will colson distribute to the common stockholders?

allocated to the periods benefited by the employee's required service

compensation expense resulting from a compensatory stock option plan is generally

as a noncurrent amount

deferred taxes should be presented on the balance sheet

property dividend

houser corporation owns 4,000,000 shares of stock in baha corporation. on december 31, 2017, houser distributed these shares of stock as a dividend to its stockholders. this is an example of a

stock dividend

if management wishes to "capitalize" part of the earnings, it may issue a

a charge for the excess to paid-in capital, depending on the original transaction related to the issuance of the stock.

the accounting for treasury stock retirements under ifrs requires

identify the contract with customers

the first step in the process for revenue recognition is to

are positions for which the tax authorities may disallow a deduction in whole or in part

uncertain tax posiitions

a company provides a distinct product or service

when dealing with contract modifications, a separate performance obligation exists when

company has transferred physical possession of the asset

a company has satisfied its performance obligation when the

may be exchanged for equity securities

convertible bonds

$202,500

gibbs corporation owned 20,000 shares of oliver corporation's $5 par value common stock. these shares were purchased in 2014 for $225,000. on september 15, 2018, gibbs declared a property dividend of one share of oliver for every ten shares of gibbs held by a stockholder. on that date when the market price of oliver was $35 per share, there were 180,000 shares of gibbs outstanding. what net reduction in retained earnings would result from this property dividend?

should not be recorded as revenue if they are for future delivery of products and services

nonrefundable upfront fees

a pension fund gain or loss that is cuased by a plant closing should be

recognized immediately as a gain or loss on the plant closing

determine the transaction price

the third step in the process for revenue recognition is to

$14,400

at the end of 2021, hauke company purchased 6,000, $1,000, 9% bonds. the carrying value of the bonds at december 31, 2018 was $5,880,000. the bonds mature on march 1, 2026, and pay interest on march 1 and september 1. hauke sells 3,000bonds on september 1, 2022, for $2,964,000, after the interest has been received. hauke uses straight line amortization. the gain on the sale is

recognized in the current period, regardless of whether the percentage of completion or completed contract method is employed

cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. in this case, the entire expected loss should be

a footnote

cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as

acquisition cost plus amortization of a discount

held-to-maturity securities are reported at

a corporation has a defined benefit plan. a pension liability will result at the end of the year if the

projected benefit obligation exceeds the fair value of the plan assets

treated as a direct reduction of retained earnings

the conversion of preferred stock into common stock requires that any excess of the par value of the common shares issued over the carrying amount of the preferred being converted should be

recognize revenue when each performance obligation is satisfied

the last step in the process for revenue recognition is to

identify the separate performance obligations in the contract

the second step in the process for revenue recognition is to

utilized to record the changes in property, plant, and equipment and intangible assets

under ifrs compliance requirements the revaluation surplus is

hopkins co at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: pretax financial income $3,000,000 estimated litigation expense 4,000,000 extra depreciation for taxes (6,000,000) taxable income 1,000,000 the estimated litigation expense of $4,000,000 will be deductible in 2021 when it is expected to be paid. use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. the income tax rate is 20% for all years. income taxes payable is

$200,000

mathis co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: pretax financial income $1,200,000 estimated litigation expense 3,000,000 installment sales (2,400,000) taxable income 1,800,000 the estimated litigation expense of $3,000,000 will be deductible in 2022 when it is expected to be paid. the gross profit from the installment sales will be realized in the amount of $1,200,000 in each of the next two years. the estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,200,000 current and $1,200,000 noncurrent. the income tax rate is 20% for all years. the income tax expense is

$240,000

eckert corporation's partial income statement after its first year of operations is as follows: income before income taxes $3,750,000 income tax expense-current (1,035,000) income tax expense-deferred (90,000) net income 2,625,000 eckert uses the straight line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. the amount charged to depreciation expense on its books this year was $2,800,000. no other differences existed between book income and taxable income except for the amount of depreciation. assuming a 20% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?

$3,250,000

cross company reported the following results for the year ended december 31, 2021, its first year of operations: income (per books before income taxes) $2,000,000 taxable income 3,200,000 the disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. what should cross record as a net deferred tax asset or liability for the year ended december 31, 2021, assuming the enacted tax rates in effect are 30% in 2021 and 25% in 2022

$300,000 deferred tax asset

watson corporation prepared the following reconciliation for its first year of operations: pretax financial income for 2018 2,700,000 tax-exempt interest income (150,000) originating temporary difference (450,000) taxable income 2,100,000 the temporary difference will reverse evenly over the next two years at an enacted tax rate of 30%. the enacted tax rate for 2021 is 20%. what amount should be reported in its 2021 income statement as the current portion of its provision for income taxes?

$420,000

Instrument Corporation has the following investments which were held throughout 2014-2015: fair value cost 12/31/2021 12/31/2022 equity investment $900,000 $1,200,000 $1,140,000 What amount of gain or loss would Instrument Corporation report in its income statement for the year ended December 31, 2022 related to its investments?

Instrument Corporation has the following investments which were held throughout 2014-2015: fair value cost 12/31/2021 12/31/2022 equity investment $900,000 $1,200,000 $1,140,000 What amount of gain or loss would Instrument Corporation report in its income statement for the year ended December 31, 2022 related to its investments?

$76,860

Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $3,124,740 at an effective interest rate of 7%. Using the effective-interest method, Landis Company decreased the Available-for-Sale Debt Securities account for the Ritter, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $10,620 and $10,980, respectively. At December 31, 2018, the fair value of the Ritter, Inc. bonds was $3,180,000. What should Landis Company report as other comprehensive income and as a separate component of stockholders' equity?

credit to sales revenue for $72,380

P&G auto parts sells parts to AAA car repair during 2021. P&G offers rebates of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if the customer's purchases for the year exceed $200,000. in the past, AAA normally purchases $300,000 in parts during a calendar year. on march 25, 2021, AAA car repair purchased $74,000 of parts. the journal entry to record the purchase includes a

$1,550,000 and $5,580,000 respectively

Seasons construction is constructing an office building under contract for Cannon Company. The contract calls for progress billings and payments of $1,550,000each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. at december 31, 2021, seasons estimates that it is 30% complete with the construction, based on costs incurred. what is the total amount of revenue from long-term contracts recognized for 2021 and what is the balance in the accounts receivable and revenue account assuming cannon company has not yet made its last quarterly payment?

decrease both

a corporation declared a dividend, a portion of which was liquidating. how would this distribution affect the following? additional paid-in-capital and retained earnings

$40,000

anders, inc., has 15,000 shares of 4%, $100 par value, cumulative preferred stock and 60,000 shares of $1 par value common stock outstanding at december 31, 2018. there were no dividends declared in 2016. the board of directors declares and pays a $110,000 dividend in 2017 and in 2018. what is the amount of dividends received by the common stockholders in 2018?

II and III

assuming a 40% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting a deferred tax liability on the balance sheet? I. a revenue is deferred for financial reporting purposes but not for tax purposes II. a revenue is deferred for tax purposes but not for financial reporting purposes III. an expense is deferred for financial reporting purposes but not for tax purposes IV. an expense is deferred for tax purposes but not for financial reporting purposes.

$4.00

at december 31, 2018, hancock company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on october 1, 2018. net income for the year ended december 31, 2018, was $1,700,000. what should be hancock's 2018 earnings per common share, rounded to the nearest penny?

at december 31, 2021, jeter corporation had the following debt securities that were purchased during 2021, its first year or operation: cost fair value trading securities $85,000 $65,000 security a 15,000 20,000 security b 100,000 85,000 totals available for sale securities security y $70,000 $80,000 security z 85,000 50,000 totals 155,000 135,000 all market declines are considered temporary. fair value adjustments at december 31, 2021 should be established with a corresponding charge against income and stockholders' equity of

at december 31, 2021, jeter corporation had the following debt securities that were purchased during 2021, its first year or operation: cost fair value trading securities $85,000 $65,000 security a 15,000 20,000 security b 100,000 85,000 totals available for sale securities security y $70,000 $80,000 security z 85,000 50,000 totals 155,000 135,000 all market declines are considered temporary. fair value adjustments at december 31, 2021 should be established with a corresponding charge against income and stockholders' equity of

$305,000

at the beginning of 2018, hamilton company had retained earnings of $320,000. during the year hamilton reported net income of $75,000, sold treasury stock at a "gain" of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. the amount of retained earnings available for dividends at the end of 2018 was:

deferred tax liability of $78,000

at the beginning of 2021, pitman co. purchased an asset for $1,800,000 with an estimated useful life of 5 years and an estimated salvage value of $150,000. for financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. pitman co.'s tax rate is 20% for 2021 and all future years. at the end of 2021, what was the deferred tax account and balance reported on pitman's balance sheet?

dublin company holds a 30% stake in club company which was purchased in 2021 at a cost of $3,000,000. after applying the equity method, the investment in club company account has a balance of $3,040,000. at december 31, 2021 the fair value of the investment is $3,120,000. which of the following values is acceptable for dublin to use in its balance sheet at december 31, 2021? I. $3,000,000 II. $3,040,000 III. $3,120,000

dublin company holds a 30% stake in club company which was purchased in 2021 at a cost of $3,000,000. after applying the equity method, the investment in club company account has a balance of $3,040,000. at december 31, 2021 the fair value of the investment is $3,120,000. which of the following values is acceptable for dublin to use in its balance sheet at december 31, 2021? I. $3,000,000 II. $3,040,000 III. $3,120,000

fair value adjustment 20,000 unrealized holding gain or loss income 20,000

fair value adjustment 20,000 unrealized holding gain or loss income 20,000

in 2021, fargo corporation began construction work under a three year contract. the contract price is $7,200,000. fargo uses the percentage of completion method for financial accounting purposes. the income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. the financial statement presentations relating to this contract at december 31, 2021, follow: balance sheet accounts receivable-construction contract billings $300,000 construction in progress $900,000 less contract billings ($720,000) costs and recognized profit in excess of billings $180,000 income statement income (before tax) on the contract recognized in 2021 $180,000 what was the initial estimated total income before tax on this contract?

in 2021, fargo corporation began construction work under a three year contract. the contract price is $7,200,000. fargo uses the percentage of completion method for financial accounting purposes. the income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. the financial statement presentations relating to this contract at december 31, 2021, follow: balance sheet accounts receivable-construction contract billings $300,000 construction in progress $900,000 less contract billings ($720,000) costs and recognized profit in excess of billings $180,000 income statement income (before tax) on the contract recognized in 2021 $180,000 what was the initial estimated total income before tax on this contract?

are used to calculate the number of common shares repurchased at the average market price, when computing diluted earnings per share

in applying the treasury stock method to determine the dilutive effect of stock options and warrants, the proceeds assumed to be received upon exercise of the options and warrants

considered outstanding at the beginning of the earliest year reported

in computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are

decreased total stockholders' equity

in january 2017, finley corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. on july 1, 2017, finley corporation reacquired 1,000 shares of its outstanding stock for $12 per share. the acquisition of these treasury shares

$1,035,000

kern company purchased bonds with a face amount of $1,000,000 between interest payment dates. kern purchased the bonds at 102, paid brokerage costs of $15,000, and paid accrued interest for three months of $25,000. the amount to record as the cost of this long-term investment in bonds is

lethman corporation purchased a machine on january 2, 2020, for $4,000,000. the machine has an estimated 5 year life with no salvage value. the straight-line method of depreciation is being used for financial statement purposes and the following macrs amounts will be deducted for tax purposes: 2020 $800,000 2023 $460,000 2021 1,280,000 2024 460,000 2022 768,000 2025 232,000 assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on lehman's balance sheet at december 31, 2021 be

lethman corporation purchased a machine on january 2, 2020, for $4,000,000. the machine has an estimated 5 year life with no salvage value. the straight-line method of depreciation is being used for financial statement purposes and the following macrs amounts will be deducted for tax purposes: 2020 $800,000 2023 $460,000 2021 1,280,000 2024 460,000 2022 768,000 2025 232,000 assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on lehman's balance sheet at december 31, 2021 be

$170,000

mann co. has outstanding 80,000 shares of 5% preferred stock with a $10 par value and 150,000 shares of $3 par value common stock. dividends have been paid every year except last year and the current year. if the preferred stock is cumulative and nonparticipating and $250,000 is distributed, the common stockholders will recieve

$236,364

manning company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $520,000. how much of the proceeds would be allocated to the common stock?

marle construction enters into a contract with a customer to build a warehouse for $950,000 on march 30, 2021 with a performance bonus of $50,000 if the building is completed by july 31, 2021. the bonus is reduced by $10,000 each week that completion is delayed. marle commonly includes these completion bonuses in its contracts and based on prior experience, estimates the following completion outcomes: completed by probability july 31, 2021 65% august 7, 2021 25% auguest 14, 2021 5% august 21, 2021 5% the transaction price for this transaction is

marle construction enters into a contract with a customer to build a warehouse for $950,000 on march 30, 2021 with a performance bonus of $50,000 if the building is completed by july 31, 2021. the bonus is reduced by $10,000 each week that completion is delayed. marle commonly includes these completion bonuses in its contracts and based on prior experience, estimates the following completion outcomes: completed by probability july 31, 2021 65% august 7, 2021 25% auguest 14, 2021 5% august 21, 2021 5% the transaction price for this transaction is

$2,984,100

masterson company has 490,000 shares of $10 par value common stock outstanding. during the year masterson declared a 15% stock dividend when the market price of the stock was $36 per share. three months later masterson declared a $.60 per share cash dividend. as a result of the dividends declared during the year, retained earnings decreased by

$72,000, $48,000, and $24,000 respectively

meyer & smith is a full service tech company. they provide equipment, installation services as well as training customers can purchase any product or service separately or as a bundled package. container corproation purchased computer equipment, installation, and training for a total cost of $144,000 on march 15, 2021. estimated standalone fair values of the equipment, installation, and training are $90,000, $60,000, and $30,000 respectively. the transaction price allocated to equipment, installation, and training is

$330,000

morgan corporation had two issues of securites outstanding: common stock and an 8% convertible bond issue in the face amount of $16,000,000. interest payment dates of the bond issue are june 30th and december 31st. the conversion clause in the bond indenture entitles the bondholders to receive forty shares of $20 par value common stock in exchange for each $1,000 bond. on june 30, 2018, the holders of $2,400,000 face value bonds exercised the conversion privilege. the market price of the bonds on that date was $1,100 per bond and the market price of the common stock was $35. the total unamortized bond discount at the date of conversion was $1,000,000. in applying the book value method, what amount should morgan credit to the account "paid-in capital in excess of par," as a result of this conversion?

$0

on december 31, 2017, houser company granted some of its executives options to purchase 150,000 shares of the company's $50 par common stock at an option price of $60 per share. the black-scholes option pricing model determines total compensation expense to be $3,000,000. the options become exercisable on january 1, 2018. what is the impact on houser's total stockholders' equity for the year ended december 31, 2017, as a result of this transaction under the fair value method?

$120,000 decrease

on december 31, 2017, kessler company granted some of its executives options to purchase 60,000 shares of the company's $10 par common stock at an option price of $50 per share. the options become exercisable on january 1, 2018, and represent compensation for executives' services over a three-year period beginning january 1, 2018. the black-scholes option pricing model determines total compensation expense to be $360,000. at december 31, 2018, none of the executives had exercised their options. what is the impact on kessler's net income for the year ended december 31, 2018 as a result of this transaction under the fair value method?

$127,000

on december 31, 2017, the stockholders' equity section of arndt, inc., was as follows: common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares $90,000 additional paid-in capital 116,000 retained earnings 184,000 total stockholders equity 390,000 on march 31, 2018, arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair value of the stock was $18 per share. for the three months ended march 31, 2018, arndt sustained a net loss of $40,000. the balance of arndt's retained earnings as of march 31, 2018, should be

$40,000

on its december 31, 2020 balance sheet, calhoun company appropriately reported a $10,000 debit balance in its fair value adjusted account. there was no change during 2021 in the composition of calhoun's portfolio of debt investments held as available for sale debt securities. the following information pertains to that portfolio: security cost fair value at 12/31/21 x $130,000 $160,000 y $100,000 $ 90,000 z $175,000 $125,000 totals: $405,000 $375,000 the amount of unrealized loss to appear as a component of comprehensive income for the year ended december 31, 2021 is

$30,000

on its december 31, 2020 balance sheet, calhoun company appropriately reported a $10,000 debit balance in its fair value adjusted account. there was no change during 2021 in the composition of calhoun's portfolio of debt investments held as available for sale debt securities. the following information pertains to that portfolio: security cost fair value at 12/31/21 x $130,000 $160,000 y $100,000 $ 90,000 z $175,000 $125,000 totals: $405,000 $375,000 what amount of unrealized loss on these debt securities should be included in calhoun's stockholders' equity section of the balance sheet at december 31, 2021?

unrealized gain of $25,000

on its december 31, 2020, balance sheet, trump company reported its investment in equity securities, which had cost $600,000, at fair value of $560,000. at december 31, 2021, the fair value of the securities was $585,000. what should trump report on its 2021 income statement as a result of the increase in fair value of the investments in 2021?

1,125,000

on january 1, 2018, gridley corporation had 375,000 shares of its $2 par value common stock outstanding. on march 1, gridley sold an additional 750,000 shares on the open market at $20 per share. gridley issued a 20% stock dividend on may 1. on august 1, gridley 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?

$4.54

on january 2, 2018, worth co. issued at par $2,000,000 of 7% convertible bonds. each $1,000 bond is convertible into 10 shares of common stock. no bonds were converted during 2018. worth had 200,000 shares of common stock outstanding during 2018. worth's 20108 net income was $900,000 and the income tax rate was 30%. worth's diluted earnings per share for 2018 would be (rounded to the nearest penny):

$780,000

on january 2, 2021 pod company purchased 25% of the outstanding common stock of jobs, inc. and subsequently used the equity method to account for the investment. during 2021 jobs, inc. reported net income of $1,260,000 and distributed dividends of $540,000. the ending balance in the investment in pod company account at december 31, 2021 was $960,000 after applying the equity method during 2021. what was the purchase price pod comapny paid for tis investment in jobs, inc?

$100,000 sales revenue and $5,833 interest revenue

on june 1, 2021, johnson & sons sold equipment to james landscaping service in exchange for a zero interest bearing note with a face value of $110,000, with payment due in 12 months. the fair value of the equipment on the date of sale was $100,000.the amount of revenue to be recognized on this transaction in 2021 is

$6,000,000

on june 30, 2018, when ermler co.'s stock was selling at $65 per share, its capital accounts were as follows: capital stock (par value $50; 60,000 shares issued) $3,000,000 premium on capital stock $ 600,000 retained earnings $4,200,000 if a 100% stock dividend were declared and distributed, capital stock would be

$104,000

on march 1, 2018, ruiz corporation issued $2,000,000 of 8% nonconvertible bonds aat 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 ruiz common stock, par value $25. the bonds without the warrants would normally sell at 95. on march 1, 2018, the fair value of ruiz's common stock was $40 per share and the fair value of the warrants was $2. what amount should ruiz record on march 1, 2018 as paid-in capital from stock warrants?

$1,036,000

on november 1, 2021, howell company purchased 1,000 of the $1,000 face value, 9% bonds of ramsey, incorporated for $1,052,500, which includes accrued interest of $15,000. the bonds, which mature on january 1, 2026, pay interest semiannually on march 1 and september 1. assuming that howell uses the straight line method of amortization and that the bonds are appropriately classified as available for sale, the net carrying value of the bonds should be shown on howell's december 31, 2021, balance sheet at

$155,283

patton company purchased $1,500,000 of 10% bonds of scott company on january 1, 2021, paying $1,410,375. the bonds mature january 1, 2031; interest is payable each july 1 and january 1. the discount of $89,625 provides an effective yield of 11%. patton company uses the effective-interest method and plans to hold these bonds to maturity. for the year ended december 31, 2021, patton company should report interest revenue from the scott company bonds of:

$2,065,000

presented below is the stockholders' equity section of oaks corporation at december 31, 2017: $900,000 common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares $350,000 additional paid-in capital in excess of par $500,000 retained earnings during 2018, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per share. for the year ended december 31, 2018, oaks reported net income of $450,000. assuming oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its december 31, 2018, balance sheet?

$122,500

rich, in acquired 30% of doane corporation's voting stock on january 1, 2021 for $1,000,000. during 2021, doane earned $400,000 and paid dividends of $250,000. rich's 30% interest in doane gives rich the ability to exercise significant influence over doane's operating and financial policies. during 2022, doane earned $500,000 and paid cash dividends of $150,000 on april 1 and $150,000 on october 1. on july 1, 2022, rich sold half of its stock in doane for $660,000 cash what should the gain be on sale of this investment in rich's 2022 income statment?

$8,100,000

roche pharmaceuticals entered into a licensing agreement with zenith lab for a new drug under development. roche will receive $8,100,000 if the new drug receives FDA approval. based on prior approval, roche determines that it is 85% likely that the drug will gain approval. the transaction price of this arrangement should be

$8,175,000

seasons construction is constructing an office building under contract for cannon company and uses the percentage of completion method. the contract calls for progress billings and payments of $1,550,000 each quarter. the total contract price is $18,600,000 and seasons estimates total costs of $17,750,000. seasons estimates that the building will take 3 years to complete, and commences construction on january 2, 2021. at december 31, 2022, seasons construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $18,000,000 due to unanticipated price increases. what is the total amount of construction expenses that seasons will recognize for the year ended december 31, 2022

$2.82

shipley corporation had net income for the year of $720,000 and a weighted average number of common shares outstanding during the period of 250,000 shares. the company has a convertible bond issue outstanding. the bonds were issued four years ago at par ($3,000,000), carry a 7% interest rate, and are convertible into 50,000 shares of common stock. the company has a 40% tax rate. diluted earnings per share are

1,560,000

stine inc. had 1,000,000 shares of common stock issued and outstanding at december 31, 2017. on july 1, 2018 an additional 1,000,000 shares were issued for cash. stine also had stock options outstanding at the beginning and end of 20108 which allow the holders to purchase 300,000 shares of common stock at $28 per share. the average market price of stine's common stock was $35 during 2018. the number of shares to be used in computing diluted earnings per share for 2018 is

the following information relates to windom company for 2021: realized gain on sale of afs debt securities $45,000 unrealized holding gains arising during the period on afs debt securities $90,000 reclassification adjustment for gains included in net income $30,000 windom's 2021 comprehensive income is

the following information relates to windom company for 2021: realized gain on sale of afs debt securities $45,000 unrealized holding gains arising during the period on afs debt securities $90,000 reclassification adjustment for gains included in net income $30,000 windom's 2021 comprehensive income is

allocate transaction price to the separate performance obligations

the fourth step in the process for revenue recognition is to

arrange for the principal to provide goods or services to a customer

the role of the agent in a principal-agent relationship is to

$1,680,000

the stockholders' equity of howell company at july 1, 2018 is presented below: common stock, par value $20, authorized 400,000 shares, issued and outstanding 160,000 shares $3,200,000 additional paid-in capital excess of par 160,000 retained earnings 650,000 total stockholders' equity 4,010,000 on august 1, 2018, the board of directors of howell declared a 15% stock dividend on common stock, to be distributed on september 15th. the market price of howell's common stock was $70 on august 1, 2018, and $76 on september 15, 2018. what is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

is the amount of consideration that a company expects to receive from a customer

the transaction price

convertible debt is separated into equity component and debt component

under ifrs, how are convertible debt recorded?

amount of discount

under ifrs, what is recorded as compensation expense for all employee share-purchase plans?

not recognized if the market price does not exceed the option price at the date of grant

under the intrinsic value method, compensation expense resulting from an incentive stock option is

82,000

vernon 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 vernon 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?

the investor should use the equity method to account for its investment unless circumstances indicate that it is unable to exercise "significant influence" over the investee

when a company holds between 20% and 50% of the outstanding stock of an investee, which of the following statements applies?

its fair value at the date of the transfer

when an investment in an available-for-sale debt security is transferred to trading because the company anticipates selling the security in the near future, the carrying value assigned to the investment upon entering it in the trading portfolio should be

records the returned asset in a separate inventory account

when sales are made with a right of return, the company

redeemable

which of the following features of preferred stock makes it more like a debt than an equity instrument?

ifrs and gaap follow the same model

with regard to recognizing stock-based compensation

$125,000

ziegler corporation purchased 25,000 shares of common stock of the sherman corporation for $40 per share on january 2, 2020. sherman corporation had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $150,000 during 2021, and reported net income of $500,000 for 2021. ziegler corporation should report revenue from investment for 2021 in the amount of