1. What is the present value of receiving $4,800,000 at the end of six years assuming an interest rate of 5 percent?

a. $3,581,834

b. $6,432,459

c. $5,040,000

d. $4,571,429

2. Jackson Corporation purchased 150 shares of Riley Corporation for $46 per share. The investment is available for sale. On 12/31/X5, Rileys stock is selling for $43 per share. Jacksons net income for the year was $235,000. What was Jacksons comprehensive income?

a. $235,000

b. $228,100

c. $234,550

d. $228,550

3. Reporting contingent losses but not contingent gains is an example of which accounting principle?

a. Matching

b. Conservatism

c. Going concern

d. Cost/benefit