At December 31, 2014 Goldman Sachs had 1,200,000 shares of common stock outstanding. In addition, Goldman had 450,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2015, Goldman paid $900,000 cash dividends on the common stock and $600,000 cash dividends on the preferred stock. Net income for 2015 was 55,100,000 and the income tax rate was 40%. The diluted earnings per share for 2015 is (rounded to the nearest penny) Select one: a. 54.25 b. $262. O C. $1.86 d. 53.75 Lease M does not contain a bargain purchase option, but the lease term is equal to 90% of the estimated economic life of the leased property. Lease P does not transfer ownership of the property to the lessee at the end of the lease term, but the lease term is equal to 75% of the estimated economic life of the leased property. How should the lessee classify these leases? Select one: a. Lease M Finance lease Lease P Finance lease Lease P Operating lease b. Lease M Finance lease Lease M Operating lease d. Lease M Operating lease Lease P Finance lease Lease P Operating lease O CUS Lease P Operating lease The following information is available for Barone Corporation: January 1, 2016 Shares outstanding 2,000,000 April 1, 2016 Shares issued for cash 320,000 July 1, 2016 Treasury shares purchased 120,000 October 1, 2016 Shares issued in a 2:1 stock split 2,200,000 The number of shares to be used in computing earnings per common share for 2016 is: Select one: c a. 4,360,000 o 6.2,730,000 c.4,520,800. d. 4,380,000. During 2018, equipment was sold for 5468,000. The equipment cost $786,000 and had a book value of $432,000. Accumulated Depreciation Equipment was 52,061,000 at 12/31/17 and $2,205,000 at 12/31/18. Depreciation expense for 2018 was Select one: a. $288,000. b.5576,000 c. $498,000. 0 d. $144,000. Which of the following differences would result in future deductible amounts? rome Select one: o a. Expenses or losses that are taxable before they are recognized in financial income. O b. Revenues or gains that are recognized in financial income but are never included in taxable income o c. Revenues or gains that are deductible before they are recognized in financial income d. Expenses or losses that are taxable after they are recognized in financial income Which of the following is included in the investing section of the statement of cash flows? Select one: o a. Change in dividends payable b. Change in property, plant and equipment c. Change in salaries payable. O d. All of the above. Which of the following temporary differences between pretax financial income and taxable income ordinarily creates a deferred tax asset? Select one: C a. Accrued revenues. O b. Accrued warranty costs. c. A newly acquired asset is depreciated on an accelerated basis for tax reporting purposes, but on a straight-line basis for financial reporting purposes. d. Prepaid insurance
