1.

Accumulated other comprehensive income is reported

Question 3 options:

in the statement of comprehensive income.

in the balance sheet as an asset.

in the balance sheet as a liability.

in the balance sheet as a component of equity.

2.

For the purposes of calculating diluted EPS, how should the conversion of outstanding convertible bonds be handled?

Question 5 options:

	Increase the numerator by the amount of pre-tax interest expense.
	Decrease the numerator by the amount of after-tax interest expense.
	Decrease the numerator by the amount of pre-tax interest expense.
	Increase the numerator by the amount of cash interest paid.
	Increase the numerator by the amount of after-tax interest expense.

3.

On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding. On October 1, 2027 Ajax issued an additional 1 million shares of common stock. Ajax also has $40 million face value, 6.25% convertible bonds outstanding for the entire year. The bonds are convertible into 2 million common shares. Ajax has a tax rate of 40% and net income of $14 million in 2027. What is Ajaxs diluted earnings per share for 2027?

Question 6 options:

	$1.35
	$1.37
	$1.27
	$1.22