Question 4
The following information is relevant to the computation of Chan Co .' s earnings per share to be disclosed on Chan ' s income statement for the year ending December 31 : Chan has no preferred stock outstanding , and no other convertible securities . What amount should be used as the numerator in the fraction used to compute Chan ' s diluted earnings per share assuming that the bonds are dilutive securities ?
Question 5
Fay Corp . had a realized foreign exchange loss of $ 15,000 for the year ended December 31 , 2005 and must also determine whether the following items will require year-end adjustment : Fay had an $ 8,000 loss resulting from the translation of the accounts of its wholly owned foreign subsidiary for the year ended December 31 , 2005 . Fay had an account payable to an unrelated foreign supplier payable in the supplier ' s local currency . The U . S . dollar equivalent of the payable was $ 64,000 on the October 31 , 2005 invoice date , and it was $ 60,000 on December 31 , 2005 . The invoice is payable on January 30 , 2006 . In Fay ' s 2005 consolidated income statement , what amount should be included as foreign exchange loss ?
Question 6
Gains from remeasuring a foreign subsidiary ' s financial statements from the local currency , which is not the functional currency , into the parent company ' s currency should be reported as a ( an )
Question 7
The following information pertains to Flint Co .' s sale of 10,000 foreign currency units under a forward contract dated November 1 , 2004 , for delivery on January 31 , 2005 : Flint entered into the forward contract in order to speculate in the foreign currency . In Flint ' s