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49.
During the year 2015, Torino Corporation suffered a $1,200,000 loss when its factory was
severely damaged in an earthquake. Assuming the corporate income tax rate is 30%, what
amount will Torino report as an extraordinary loss on its income statement for 2015?
Assume earthquakes are not common in this area.
50.
A company had 125,000 shares of common stock outstanding on January 1 and then sold
35,000 additional shares on March 30. Net income for the year was $594,750. What are
earnings per share?
51.
The price-earnings ratio is the:
52.
In computing earnings per share, the number of shares used is:
53.
The amount of earnings per share is usually computed:
54.
Which of the following statistics is generally computed for both common and preferred
stock?
55.
Earnings per share figures are shown in the income statement:
56.
The numerator in calculating earnings per share is reduced for:
57.
All things being equal, if investors expect earnings to increase substantially from current
levels, the price/earnings ratio will:
58.
The common stock of Securetech Corporation consistently sells at a market price of 20
times earnings (i.e., at a p/e ratio of 20). What would be the most likely effect of a 10 cent
increase in Securetech's basic EPS?
59.
Which of the following has
no
effect on the computation of earnings per share for the
current period?
60.
General Corporation was organized on January 1 and issued 500,000 shares of common
stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net
income for the year was $5,184,000. Net earnings per share amounted to:
61.
Platinum Company reports net income of $520,000 for 2015 and declared a cash dividend
of $1 per share on each of its 100,000 shares of common stock outstanding. What are
earnings per share for 2015?
62.
Designs, Inc. had 4,000 shares of $7, $100 par preferred stock and 50,000 shares of
common stock outstanding throughout 2015. During 2015, Designs declared a dividend of
$7 per share on its common stock. Compute earnings per share for 2015 if Designs' income
statement showed net income of $630,000.
63.
Unique Corp. had 50,000 shares of $5 preferred stock, $100 par, and 100,000 shares of $1
par common stock outstanding throughout the year. Net income for the year was $780,000,
and Unique declared and distributed a cash dividend of $1 per share on its common stock.
Earnings per share amounted to:
64.
A company had 240,000 shares of common stock outstanding on January 1 and then sold
60,000 additional shares on April 30. Net income for the year was $426,750. What are
earnings per share?
65.
National Corporation was organized on January 1 and issued 600,000 shares of common
stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net
income for the year was $3,675,000. Net earnings per share amounted to:
66.
On January 1, 2015, Carleton Corporation had 55,000 shares of $6 par value common stock
outstanding. On March 31, 2015, Carleton issued an additional 10,000 shares in exchange
for a building. What number of shares will be used in the computation of earnings per
share for the year 2015?
67.
On January 1, 2015, Ole Corporation had 75,000 shares of $8 par value common stock
outstanding. On July 31, 2015, Ole issued an additional 10,000 shares in exchange for a
building. What number of shares will be used in the computation of earnings per share for
the year 2015?
68.
It would be reasonable to assume that:
69.
Diluted earnings per share is a hypothetical computation to warn stockholders what could
happen if:
70.
When a company reports both diluted earnings per share and basic earnings per share:
71.
Which of the following would not be used in computing diluted earnings per share?
72.
On January 1, 2015, Edward Corporation had 10,000 shares of $6 par value common stock
and 10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The
preferred shares carried a 3 for 1 conversion privilege. On October 1, 2015, all of the
preferred shares were converted to common. What number of shares must Edward use in
computing basic earnings per share at December 31, 2015?
73.
For the current year, Voque Company reported basic earnings per share of $8 and diluted
earnings per share of $3. The difference between these figures is attributable to
outstanding shares of convertible preferred stock. If all this preferred stock had actually
been converted into common stock at the beginning of the current year, Voque Company
would have reported only one earnings per share amount, which would have been:
74.
On January 1, 2015, Alice Corporation had 20,000 shares of $6 par value common stock and
10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The preferred
shares carried a 3 for 1 conversion privilege. As of December 31, 2015, none of the
preferred shares had been converted. What number of shares must Alice use in computing
diluted earnings per share at December 31, 2015?
75.
A small stock dividend is recorded at:
76.
Stock splits:
77.
Which of the following would have
no
effect on Retained Earnings?
78.
On January 31, 2015, Village Bank had 500,000 shares of $2 par value common stock
outstanding. On that date, the company declared a 14% stock dividend when the market
price of the stock was $37 per share. The immediate effect of this dividend upon Village
Bank was:
79.
Large stock dividends tend to:
80.
To receive the next cash dividend, an investor must purchase the stock before the:
81.
Dividends become a liability of a corporation:
82.
A liquidating dividend:
83.
Dividends are first recorded and retained earnings are reduced on:
84.
As a result of a 5% stock dividend:
85.
A large stock dividend and a stock split are similar in that they both cause a:
86.
Supervox Corporation declared a 3-for-2 common stock split, but this transaction was
erroneously recorded as a 50% common stock dividend. As a result:
87.
Declaration and distribution of a stock dividend cause each of the following effects
except
:
