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18. Both IFRS and U.S, GAAP permit valuation of long-term debt and other ligbilities at A) present value discounted at the firm's cost of capital.

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18. Both IFRS and U.S, GAAP permit valuation of long-term debt and other ligbilities at A) present value discounted at the firm's cost of capital. B) current market values of the obligations, based on changes in the discount rate with unrealized gains and losses reflected in a separate account in stockholders' equity C) fair val D) histori ue with gains and losses on changes in fair value recorded in income in certain situations. c costs without reflecting changes in valuation as obligations will be retired at their maturity date. 19. On January 1,2018, Culver Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10,000 shares of stock to be held in the treasury. On December 1 , when the market price of the stock was S 15, the corporation declared a 15% stock dividend to be issued to stockholders ofrecord on December 16, 2018. what was the impact of the l 5% stock dividend on the balance of the retained earnings account? A) $82,500 decrease B) $225,000 decrease C) $247,500 decrease D) No effect written, Inc. has outstanding 600,000 shares of $2 par common stock and 120,000 shares of no-par 6% preferred stock with a stated value of S5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. 20, Assuming that $95,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive? A) $32,000. B) S36,000. C) $72,000. D) $95,000. 21. Treasury stock. Agler Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares, par S30 per share Paid-in capital in excess of par Retained earnings $150,000 80,000 100,000 The following transactions occurred this year: (a) Purchased 400 shares of capital stock to be held as treasury stock, paying $60 per share. (b) Sold 300 of the shares of treasury stock at S65 per share. (c) Sold the remaining shares of treasury stock at $50 per share. Instructions Prepare the journal entry for these transactions under the cost method of accounting for treasury stock. Page 7

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