Gwinnett Corporation's temporary investments cost $100,000 and have a market value of $120,000 at 13. $21,(XX) 1). $60),(0X0)

the end of the accounting period. Assuming a tax rate of 40%, the difference between the cost and market value would be reported as a A. $12,00K) realized gain. 1. $12,000 unrealized gain. C. $20,000 realized gain. D. $20,000 unrealized gain. 1. Cisneros Corporation owns 75% of Harrell Inc. Dur ing the current year, Harrell Inc. reported net in come of $150,000 and declared dividends of $40,000. How much would Cisneros Corporation in crease Investment in Harrell Inc. Stock for the cur- rent year? A. 80 15. $50,000 C. $82,500 D. $112,500) 5. Harkin Company has a market price of 800 per share on December 51. The total stocklusters exq uity is $2,100,000, and the net income is $800,000. There are 200,000 shares outstanding. Preferred div idends are $50,000. The price earnings ratio would he A. 3. B. 15. C. 16. 1.20.

AppendixLO1