ACC 304 All Assignments ACC 304 All Assignments | Page 10

preferred stock. Net income for the year ended December 31, 2015 was
$465,000. What should be Didde's 2015 earnings per common share?
5) Weiser Corp. on January 1, 2012, granted stock options for 40,000
shares of its $10 par value common stock to its key employees. The
market price of the common stock on that date was $23 per share and
the option price was $20. The Black-Scholes option pricing model
determines total compensation expense to be $420,000. The options
are exercisable beginning January 1, 2015, provided those key
employees are still in Weiser’s employ at the time the options are
exercised. The options expire on January 1, 2016.
On January 1, 2015, when the market price of the stock was $29 per
share, all 40,000 options were exercised. The amount of compensation
expense Weiser should record for 2015 under the fair value method is
6) Carr Corporation retires its $300,000 face value bonds at 105 on
January 1, following the payment of interest. The carrying value of the
bonds at the redemption date is $311,235. The entry to record the
redemption will include a
7) On October 1, 2014 Macklin Corporation issued 5%, 10-year bonds
with a face value of $4,000,000 at 104. Interest is paid on October 1
and April 1, with any premiums or discounts amortized on a straight-
line basis.