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