Question 6. 6. (TCO A) At December 31, 2010, Kifer Company had
500,000 shares of common stock outstanding. On October 1, 2011,
an additional 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 (rounded to the nearest penny)? Show all
computations. (Points : 25)
Question 7. 7.
(TCO B) The following information pertains to Fox Inc.’s portfolio
of marketable securities for the Year ended Dec 31, Year 1 and Dec
31, Year 2.
Cost Fair Value at
Record the journal entries for the following marketable securities
transactions based on the information given in the table.
1. Mark to market journal entry for the Smith Co security at 12/31
Year 1