Golden invested financial assets for $100,000 which is classified as held for trading securities and fair value at year end is $90,000. What amounts should be recognized in income statement and balance sheet about this investment? Balance Sheet Income Statement
A. $100,000 $10,000 unrealized loss
B. $90,000 $10,000 unrealized loss
C. $90,000 No gain or loss
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Financial assets are measured at fair value except for:
A. trading securities.
B. available for sale securities.
C. held-to-maturity.
Company MG uses the LIFO inventory cost method under perpetual inventory system and records its inventory as follow: Beginning inventory, May 1: 4,000 units, ($8/unit) May 4: Purchase of 1,600 units, ($6/unit) May 10: Sale of 2,200 units, ($8/unit) May 21: Purchase of 2,800 units, ($7/unit) May 29: Sale of 2,500 units, ($9/unit) The company’s ending inventory in May 31 is:
A. $29,300.
B. $25,000.
C. $29,600.
At the beginning of last year, Riso Company purchased a production line for $80,000 for making toys, which are their star products. According to previous experience, Riso Company estimated that the production line was able to produce a maximum of 500,000 toys and that the production line could be used for eight years with no residual value. At the end of last year, the company actually produced 30,000 toys. Assume Riso Company uses units-of-production depreciation method to measure its fixed assets, the depreciation expense for the line in the last year was:
A. $4,800.
B. $8,000.
C. $16,000.
According to the following data, how many shares of common stock should be used to calculate diluted EPS? * Net income of $1,500,000, tax rate of 35%. * 1,000,000 shares of common are outstanding at the beginning of the year. * 10,000,5% convertible bonds with each bond convertible into 10 shares of common stock were issued at par ($100) on June 30 th of last year. * The firm has 100,000 warrants outstanding all year with an exercise price of $25 per share. * The average stock price for the period is $50.
A. 1,150,000
B. 1,100,000
C. 1,650,000