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