Net income for the year ended december 31 2006 was 60000 at


William Corp. issued 10,000 shares of its $1 par value common stock for a building. The building was listed for sale at $500,000. William's common stock is currently selling for $45 per share. William Corp. should record the building at

$10,000

$440,000

$450,000

$500,00

If a company reissued at $20 per share 100 shares of treasury stock that it had previously acquired for $28 per share and there wasn't any Paid-in Capital from Treasury Stock, it would debit

Loss on Sale of Treasury Stock for $800

Paid-in Capital from Common Stock for $800

Retained Earnings for $800

Treasury Stock for $800

Coe Corp. issued 20,000 shares of $5 par common stock at $10 per share. On December 31, 2005, Coe's retained earnings were $300,000. In March 2006, Coe reacquired 5,000 shares of its common stock at $20 per share. In June 2006, Coe sold 1,000 of these shares to its corporate officers for $25 per share. Coe uses the cost method to account for its treasury stock. Net income for the year ended December 31, 2006, was $60,000. At December 31, 2006, what amount should Coe report as retained earnings?

$360,000

$365,000

$375,000

$380,000

During 2005, Bob Co. issued 5,000 shares of $100 par convertible preferred stock for $110 per share. One share of preferred stock can be converted into three shares of Bob's $25 par common stock at the option of the preferred shareholder. On December 31, 2006, when the market value of the common stock was $40 per share, all of the preferred stock was converted. What amount should Bob credit to Common Stock and to Additional Paid-in Capital as a result of the conversion?

Common Stock

Additional Paid-in Capital

$375,000

$175,000

375,000

225,000

500,000

50,000

600,000

0

Assume that Grandzol Company believes that $120,000 of a $600,000 deduction will not be utilized in future periods and that the tax rate is 40 percent for all periods. What is the amount of the valuation allowance?

$48,000

$120,000

$192,000

$240,000

On December 31, 2010, Albacore Company had 300,000 shares of common stock issued and outstanding. Albacore issued a 10% stock dividend on June 30, 2011. On September 30, 2011, 12,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2011?

303,000

342,000

312,000

327,000

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Accounting Basics: Net income for the year ended december 31 2006 was 60000 at
Reference No:- TGS02417316

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