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100,000 shares of common stock were issued. In addition, Kifer had
$10,000,000 of 6% convertible bonds outstanding at December 31, 2010,
which are convertible into 225,000 shares of common stock. No bonds
were converted into common stock in 2011. The net income for the year
ended December 31, 2011, was $3,000,000. Assuming the income tax
rate was 30%, what would be the diluted earnings per share for the year
ended December 31, 2011
7. (TCO B) Agee Corp. acquired a 25% interest in Trent Co. on January
1, 2010, for $500,000. At that time, Trent had 1,000,000 shares of its $1
par common stock issued and outstanding. During 2010, Trent paid cash
dividends of $160,000 and thereafter declared and issued a 5% common
stock dividend when the market value was $2 per share. Trent's net
income for 2010 was $360,000. What is the balance in Agee’s
investment account at the end of 2010?
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ACCT 551 Final Exam Set 2
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Question 1. 1. (TCO C) Which characteristic is not possessed by
intangible assets? (Points : 5)
Physical existence