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the outcome of the appeal. In its December 31, 2004, balance
sheet, Halsey should report what amounts of asset and liability
related to these legal actions?
Question 9
Which of the following is not a contingent liability under
international accounting standards?
Question 10
Based on preliminary discussions with a foreign customer,
Alcoco, a U.S. entity, budgeted a significant sale to the foreign
entity denominated in its foreign currency expected in June 2009.
To hedge the risk of an adverse exchange rate change on the
dollar value of the expected sale, on January 2, 2009, Alcoco
entered into a forward exchange contract to sell an amount of the
foreign currency equal to the expected sale. On March 31, 2009,
the value of the expected sale amount in dollars had decreased by
$3,800. The fair value of the forward contract at that date had
increased by $4,000. Which one of the following is the amount
that should be recognized in other comprehensive income for the
forward contract only (the hedging instrument) in Alcoco's
quarterly financial statements as of March 31?
Question 11
Ute Co. had the following capital structure during 2004 and 2005:
Preferred stock is not considered a common stock equivalent. Ute
reported net income of $500,000 for the year ended December 31,
2005. Ute paid no preferred dividends during 2004 and paid
$16,000 in preferred dividends during 2005. In its December 31,
2005, income statement, what amount should Ute report as
earnings per share?