Question
1. Information regarding Silly Co.s portfolio of available-for-sale securities is as follows: Aggregate cost as of 12/31/05 $170,000 Unrealized gains as of 12/31/05 4,000 Unrealized
1. Information regarding Silly Co.s portfolio of available-for-sale securities is as follows:
Aggregate cost as of 12/31/05 | $170,000 |
Unrealized gains as of 12/31/05 | 4,000 |
Unrealized losses as of 12/31/05 | 26,000 |
Net realized gains during 2005 | 30,000 |
At December 31, 2004, Silly reported an unrealized holding loss from available-for-sale securities of $1,500 on the statement of stockholders equity. Assuming the application of SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, what amount should Silly report on its December 31, 2005, balance sheet as an unrealized holding loss?
$26,000 | ||||||||||||||
$22,000 | ||||||||||||||
$20,500 | ||||||||||||||
| $0 2. On December 31, 2010, the CPA Company had 100,000 shares of common stock issued and outstanding. On July 1, 2011, the company sold 20,000 additional shares for cash. CPA's net income for the year ended December 31, 2011 was $650,000. During 2011, CPA declared and paid $89,000 in cash dividends on its nonconvertible preferred stock. What is the 2011 basic earnings per share?
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