11) On January 2, 2021, ABC Co, issued at par $10,000 of 69. bonds convertible in total into 1.000 shares of ABC common stock. No bonds were converted during 2021. Throughout 2021, ABC had 1,000 shares of common stock outstanding, ABC's 2021 met Income was $4.500, and its income tax rate is 30%. Ne potentially diluthe securities other than the convertible bonds were outstanding during 2021. ABC's diluted earnings per share for 2021 would be rounded to the nearest penny) A) 54.92. B) 52.25. ) 52.55, D) 52.46. 12) At December 31, 2020, ABC Co. had 1.200.000 shares of common stock outstanding. In addition, ARC had 440,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2021. ABC paid $1,200,000 cash dividends on the common stock and 500.000 cash dividends on the preferred stock. Net Income for 2021 was 56.800.000 and the income tax rate was 40%. The diluted earnings per share for 2021 s (rounded to the nearest penny) A) 52.48. B) 51.49. C) 5.66. D) 55.00 13) ARC Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods? Fair Value Method Equity Method A) Decrease No Effect B) Na Effect No Effect Increase Decrease D) No Effect Decrease On January 3, 2020, ABC Company acquires S500,000 of XYZ Company's 10 year, 10% bonds at a price of 583.090 to yield 9%. Interest is payable cach December 31. The hands are classified as hell-tomaturity 14) Assuming that ABC Company uses the effective interest method, what is the amount of interest revenue that would be recognid in 2021 related to the A) $47,890 B) 550.000 C) 551,20N D) $47,698 15) During 2021 Black Company purchased 10.000 shares of White, Inc. for 50 per share. During the year Black Company sold 2,500 shares of White, Inc. for sus per share. At December 31, 2021 the market price of White, Inc.'s stock was per share. What is the total amount of gains that Black Company will report in its income intent for the year ended Deermber 31, 2021 related to its investment in White, Incstock? A) (520.000) B) S12.500 C) (52,500) D) ($7,500) 16) ABC Corporation has the following investment which was held throughout 2021-2022: Fair Valur Cost 12/31/21 12/0122 Equity investment $900,000 $1,200,000 $1,140,000 What amount of gain or loss would ABC Corporation report in its income statement for the year ended December 31, 2022 related to its investm A) $100.000 gain ) 560,000 gain $60.000 loss D) $240.000 gain
