As of 2014, Fischer Corp. has $10 par, 4% preferred stock, 6,000 shares outstanding, and $1 par common stock with 38,000 shares outstanding. The preferred stock is cumulative and preferred stockholders last received a dividend in 2011. If the company wants to distribute $3 per share to the common stockholders in 2014, what is the total amount of dividends that the company must pay in the current year? Select one: a. $60,000 b. $121,200 c. $ 54,000 d. $114,000 e. None of the above

eBays footnote regarding employee stock compensation details the grant of 2 million options during the year of 2013, the fair-value of which was computed as $15.39. If the options have, on average, a four-year vesting schedule and the company faces a 35% tax rate on income, what affect would this option grant have on eBays accounts in 2013? Select one: a. $ 2,693,250 increase to deferred tax asset, $2,693,250 decrease to tax expense b. $10,388,250 increase to deferred tax asset, $10,388,250 decrease to tax expense c. $ 2,693,250 decrease to deferred tax asset, $2,693,250 increase to tax expense d. $10,388,250 decrease to deferred tax asset, $10,388,250 increase to tax expense e. Indeterminable since the number of options exercised is unknown.

Which of the following should NOT be included in accumulated other comprehensive income? Select one: a. Minimum pension liability b. Currency translation adjustment c. Unrealized gains and losses on available-for-sale securities d. Unrealized gains and losses on trading securities e. None of the above

Which of the following transactions is similar to a repurchase of stock in its accounting treatment? Select one: a. Sell-off b. Spin-off c. Split-off d. Carve-out e. None of the above

Arvil Company owns 25% of Zelda Inc. and accounts for the investment using the equity method. During the year, Zelda Inc. reports a net loss of $890,000 and pays total dividends of $41,000. Which of the following describes the change in Avrils investment in Zelda during the year? Select one: a. The investment increases by $181,500. b. The investment decreases by $232,750. c. The investment decreases by $222,500. d. The investment decreases by $10,250. e. None of the above

Bally Corporation purchases an investment in Monte Carlo, Inc. at a purchase price of $7 million cash, representing 40% of the book value of Monte Carlo, Inc. During the year, Monte Carlo reports net income of $1,200,000 and pays $295,000 of cash dividends. At the end of the year, the market value of Ballys investment is $8.5 million. What is the year-end balance of the equity investment in Monte Carlo? Select one: a. $7,000,000 b. $7,480,000 c. $8,910,000 d. $7,362,000 e. $8,500,000

At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book value of the assets of the acquired company were $174 million, its liabilities $115 million. An appraiser determined that the acquirees land had a fair value of $2 million in excess of its net book value. Standard Rate also determined that the acquiree had an unrecorded liability of $4.5 million relating to a lawsuit. The book value of all other assets and liabilities approximated fair value. What did Standard Rate Company record as goodwill for this acquisition? Select one: a. $11.5 million b. $ 9 million c. $16 million d. $ -0- e. None of the above