1.) Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $45 a share plus brokerage fees of $280. The entry for the purchase is

A.) InvestmentsSaxton Company Stock 4,500 Cash 4,500

B.) InvestmentsSaxton Company Stock 4,500 Brokerage Fee Expense 280 Cash 4,780

C.) Cash 4,500 InvestmentsSaxton Company Stock 4,500

D.) InvestmentsSaxton Company Stock 4,780 Cash 4,780

2.) An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?

A.) $500 gain

B.) $350 loss

C.) $350 gain

D.) $3,500 gain

3.) The company whose stock is more than 50% owned by another company is called the

A.)investee company

B.) controlling company

C.) subsidiary company

D.) sibling company

4.)Held-to-maturity securities

A.) may be reported as current or noncurrent assets

B.) include stocks as well as bonds

C.) All of these choices are correct.

D.) are reported at fair market value

5.) GAAP requires trading and available-for-sale investments to be recorded

A.)at their historical cost

B.) at their market value

C.) at their net realizable value

D.) at their fair value

6.) Edison Corporation paid a dividend of $10 per share on its $100 par preferred stock and $4 per share on its $20 par common stock. The market value of the common stock is $80 per share. Edison's dividend yield is

A.) 20%

B.) 5%

C.)10%

D.) 25%