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?
Question 12
A manufacturer of household appliances may incur a loss due
to the discovery of a defect in one of its products. The
occurrence of the loss is reasonably possible and the resulting
costs can be reasonably estimated. This possible loss should be
Question 13
A hedge to offset the risk of loss on a recognized asset or
liability is which of the following types of hedge?
Question 14