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