Question :
26. The amount of income from operations of the Telecommunications : 1370112
26. The amount of income from operations of the Telecommunications Division that would appear on the 2010 income statement of Kaiser Corporation is:
A)$297,500
B)$312,000
C)$552,500
D)$850,000
27. The amount of gain (loss) from disposal of the Telecommunications Division that would appear on the 2010 income statement of Kaiser Corporation is:
A)$129,500 loss
B)$240,500 loss
C)$370,000 loss
D)$312,000 gain
28. Kaiser Corporation’s net income for 2010 is:
A)$3,001,700
B)$4,306,000
C)$4,450,000
D)$4,618,000
Use the following to answer questions 29-31:
Spectrum Corporation sold its Specialties Division during 2010. The company’s accountants determined that the division had a pre-tax loss $770,000 during 2010 prior to disposal. The sale resulted in a $235,000 gain before taxes. The company had neither extraordinary items nor any cumulative accounting adjustments. Spectrum’s income from continuing operations for 2010 amounted to $23,460,000. The company’s effective tax rate is 38%.
29. The amount of loss from operations of the Specialties Division that would appear on the 2010 income statement of Spectrum Corporation is:
A)$770,000
B)$477,400
C)$331,700
D)$292,600
30. The amount of gain(loss) from disposal of the Specialties Division that would appear on the 2010 income statement of Spectrum Corporation is:
A)$331,700 loss
B)$ 89,300 gain
C)$145,700 gain
D)$235,000 gain
31. Spectrum Corporation’s net income for 2010 is:
A)$14,213,500
B)$22,925,000
C)$23,128,300
D)$23,256,700
32. Which of the following statements about earnings per share is false?
A)Diluted earnings per share reflects the maximum possible dilution that could result from turning convertible and nonconvertible securities into common stock
B)Net income is reduced by applicable preferred dividends in determining earnings per share
C)Earning per share permits useful comparison of the performance of firms of different size
D)Firms with convertible securities present both basic and diluted earnings per share
33. What is compromised when a firm changes from one accepted accounting method to another?
A)matching
B)objectivity
C)conservatism
D)consistency
34. What items should be included in comprehensive income but not in net income?
A)net income
B)foreign currency translations
C)unrealized gains on investments
D)all of the above should be included
Use the following to answer questions 35-38:
James Company had the following income statement for the year ended December 31, 2010:
Net sales
$600,000
Costs and expenses
Cost of goods sold
400,000
Selling, general, and administrative expenses
80,000
Interest expense
5,000
Income tax
35,000
80,000
Gain from discontinued operations
30,000
110,000
Unrealized loss on available for-sale-securities
8,000
$102,000
35. The firm’s operating income for 2010 was:
A)$200,000
B)$120,000
C)$115,000
D)unable to determine from the information given
