A company's activities for Year 2 included the following:
Unrealized gain on available for sale debt securities | 9,600 |
Cost of goods sold | 1,400,000 |
Prior service cost adjustment for defined benefit pension plan | 195,000 |
Selling and administrative expense | 600,000 |
Gain on sale of available for sale securities | 16,000 |
Gain on disposal of a discontinued business segment | 26,000 |
Sales returns | 106,000 |
Gross sales | 7,300,000 |
The company has a 30% effective income tax rate.
What is the company's net income for Year 2?
$3,535,420
$3,808,420
$3,647,000
$3,665,200
Mountain View's activities for the year included the following:
Gross Sales | 1,500,000 |
Cost of goods sold | 360,000 |
Selling and administrative expenses | 120,000 |
Unrealized loss on derivative hedging transaction | 10,000 |
Allowance for doubtful accounts | 17,000 |
Prepaid insurance expense | 37,000 |
Foreign currency translation gain | 96,000 |
Loss on sale of equity securities | 55,000 |
Unrealized loss on equity securities | 38,000 |
The company has a 30% effective income tax rate.
What is the company's net income for the year?
$647,500
$648,900
$620,900
$681,100
A company's activities for Year 2 included the following: Unrealized gain on available for sale debt...
Mountain View's activities for the year included the following: Gross Sales 7,400,000 Cost of goods sold 3,100,000 Selling and administrative expenses 900,000 Adjustment for a prior year understatement of depreciation expense 112,000 Sales returns 71,000 Loss on operations of discontinued Segment A 411,000 Royalty income from infringement settlement 800,000 Unrealized loss on equity securities 41,000 Gain on disposal of assets of discontinued business Segment A 375,000 Extraordinary loss from hail storm 143,000 Gain on early extinguishment of convertible bonds 201,000...
an unrealized holding gain on available-for-sale debt securities $18,000. Instructions ment format. (Ignore income taxes and earnings per share.) E4.16 (L05) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized hold ing loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000;...
At December 31, 2017, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $27,000 25,200 45,900 $98,100 $(4,500) 2,700 4,500 $31,500 22,500 41,400 Total $95,400 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. 2,700 720 $1,980 On January 20, 2018, Skysong, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees. (a) Your answer is correct. Prepare the adjusting entry at December 31, 2017, to report the portfolio...
Annual Report: Other Comprehensive Income (in millions) Year 1 Year 2 Year 3 Net unrealized gain (loss) on available-for-sale securities: Year 1: $(9,324) Year 2: $47,230 Year 3: $19,238 1. Explain why the net unrealized gain on available-for-sale securities was negative in Year 1. 2. Explain why the account balance became positive in Year 2 but then declined in Year 3. Are the changes in this account reported on company's income statement? on the company’s income statement? Would this account...
Saved Help Save Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year end cost and fair values for its portfolio of these debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1is: Available-for-Sale Securities Cost Fair Value December 31, 20x1 $300,000 $281,000 December 31, 20x2 $380,000 $401,500 Multiple Choice Debit Unrealized Gain-Equity $19000 Credit Fair Value Adjustment - Available for Sale (LT) $19.000 Debit Unrealized Loss -...
The following information is available for Marin Inc. for the year ended December 31, 2017: Loss on discontinued operations $75,000 Retained earnings January 1, 2017 $1,240,000 Rent revenue 87,000 Selling expenses 861,000 Income tax applicable to continuing operations 296,000 Income tax applicable to loss on discontinued operations 28,000 Administrative expenses 512,000 Cost of goods sold 1,674,000 Loss on write-down of inventory 35,000 Sales revenue 3,725,000 Gain on sale of equipment 37,000 Cash dividends declared 221,000 Unrealized gain on available-for-sale securities...
At the beginning of 2018, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/18 Fair Value A $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 During 2018, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $44,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B...
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow. The year end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is: Available-for-Sale Securities December 31, 20x1 December 31, 20x2 December 31, 20X3 Cost $295,000 $376,000 $446,000 Fair Value $277,000 $396,000 $495,000 Multiple Choice O Debit Unrealized Gain-Equity $18,000: Credit Fair Value Adjustment - Available-for-Sale (LT) $18,000. 0 O Debit Unrealized...
The following information was taken from the records of Blue Inc. for the year 2020: Income tax applicable to income from continuing operations $228,140; income tax applicable to loss on discontinued operations $31,110, and unrealized holding gain on available for sale securities (net of tax) $18,300. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $115,900 91,500 292,800 48,800 73.200 Cash dividends declared Retained earnings January 1, 2020 Cost of goods...
At December 31, 2017, the available-for-sale debt portfolio for Whispering, Inc. is as follows: Unrealized Gain (Loss) Security Cost Fair Value $44,625 $38,250 31,875 35,700 58,650 65,025 Total $135,150 $138,975 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $(6,375 ) 3,825 6,375 3,825 1,020 $2,805 On January 20, 2018, Whispering, Inc. sold security A for $38,505. The sale proceeds are net of brokerage fees. Whispering Inc. reports net income in 2017 of $306,000 and in 2018 of $357,000. Unrealized holding...