pays an annual dividend of $ 5 per share. DiCenta ‟ tax rate is 40 %. Compute DiCenta ‟ 2012 diluted earnings per share.
Question 9
Ferraro, Inc. established a stock appreciation rights( SAR) program on January 1, 2012, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $ 24 on 5,050 SARs. The required service period is 2 years. The fair value of the SAR ‟ s are determined to be $ 6 on December 31, 2012, and $ 13 on December 31, 2013.
Question 10
Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler with a carrying( and fair) value of $ 88,020. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $ 57,020. It is determined that this loss in value is other-than temporary. Prepare the journal entry, if any, to record the reduction in value.
Question 11
Capriati Corporation made the following cash purchases of securities during 2012, which is the first year in which Arantxa invested in securities.
1. On January 15, purchased 11,700 shares of Gonzalez Company ‟ s common stock at $ 43.55 per share plus commission $ 2,574.
2. On April 1, purchased 6,500 shares of Belmont Co.‟ s common stock at $ 67.60 per share plus commission $ 4,381.
3. On September 10, purchased 9,100 shares of Thep Co.‟ s preferred stock at $ 34.45 per share plus commission $ 6,383.
On May 20, 2012, Capriati sold 3,900 shares of Gonzalez Company ‟ s common stock at a market price of $ 45.50 per share less brokerage commissions, taxes, and fees of $ 3,705. The year-end fair values per share were: Gonzalez $ 39.00, Belmont $ 71.50, and Thep $ 36.40. In