IA

Hoyt Corp.'s current balance sheet reports the following stockholders' equity: 5% cumulative preferred stock, par value P100 per share; 2,500 shares issued and outstanding P250,000 Common stock, par value P3.50 per share; 100,000 shares issued and outstanding 350,000 Additional paid-in capital in excess of par value of common stock 125,000 Retained earnings 300,000 Dividends in arrears on the preferred stock amount to P25,000. If Hoyt were to be liquidated, the preferred stockholders would receive par value plus a premium of P50,000. The book value per share of common stock is a. P7.75 b. P7.50 O C. P7.25 O d. P7.00Refer to this information: Bronson Company had a noncontributory defined benefit pension plan. On December 31, 2016, the entity received the projected benefit obligation report from the independently actuary. Pension benefits paid 135, 000 PBO on December 31, 2016 2, 160, 000 Interest expense 120, 000 Discount rate What is the current service cost for 2016? a. 675,000 b. 810,000 O c. 540,000 O d. 255,000In May year 1 Caso Co. filed suit against Wayne, Inc. seeking P1,900,000 damages for patent infringement. A court verdict in November year 5 awarded Caso P1,500,000 in damages, but Wayne's appeal is not expected to be decided before year 7. Caso's counsel believes it is probable that Caso will be successful against Wayne for an estimated amount in the range between P800,000 and P1,100,000, with P1,000,000 considered the most likely amount. What amount should Caso record as income from the lawsuit in the year ended December 31, year 5? a. PO b. P 800,000 O C. P1,000,000 O d. P1,500,000On December 30, year 1, Hale Corp. paid P400,000 cash and issued 80,000 shares of its P1 par value common stock to its unsecured creditors on a pro rata basis pursuant to a reorganization plan under Chapter 11 of the bankruptcy statutes. Hale owed these unsecured creditors a total of P1,200,000. Hale's common stock was trading at P1.25 per share on December 30, year 1. As a result of this transaction, Hale's total stockholders' equity had a net increase of a. P1,200,000 b. P 800,000 C. P 100,000 O d. P 80,000On December 31, year 2, Largo, Inc. had a P750,000 note payable outstanding, due July 31, year 3. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing long-term bonds. Because Largo temporarily had excess cash, it prepaid P250,000 of the note on January 12, year 3. In February year 3, Largo completed a P1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during year 3. On March 3, year 3, Largo issued its year 2 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, year 2 balance sheet? O a. P750,000 O b. P500,000Largo temporarily had excess cash, it prepaid P250,000 of the note on January 12, year 3. In February year 3, Largo completed a P1,500,000 bond offering. Largo will use the bond / offering proceeds to repay the note payable at its maturity and to pay construction costs during year 3. On March 3, year 3, Largo issued its year 2 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, year 2 balance sheet? a. P750,000 O b. P500,000 O C. P250,000 O d. PoOn December 30, year 1, Fort, Inc. issued 1,000 of its 8%, ten-year, P1,000 face value bonds with detachable stock warrants at par. Each bond carried a detachable warrant for one share of Fort's common stock at a specified option price of P25 per share. Immediately after issuance, the market value of the bonds without the warrants was P1,080,000 and the market value of the warrants was P120,000. In its December 31, year 1 balance sheet, what amount should Fort report as bonds payable? a. P1,000,000 b. P 975,000 O C. P 900,000 O d. P 880,000On July 2, year 1, Wynn, Inc., purchased as a short-term investment a P1,000,000 face value Kean Co. 8% bond for P910,000 plus accrued interest to yield 10%. The bonds mature on January 1, year 8, pay interest annually on January 1, and are classified as trading securities. On December 31, year 1, the bonds had a market value of P945,000. On February 13, year 2, Wynn sold the bonds for P920,000. In its December 31, year 1 balance sheet, what amount should Wynn report for short-term investments in trading debt securities (FVPL)? O a. P910,000 b. P920,000 c. P945,000 O d. P950,000Thesaurus, Inc. reported a balance of P 43, 000 in its Cash account at the end of the month. There were P 20, 000 deposits in transit and P 15, 000 outstanding checks. The banks tatement showed a balance of P 50, 000, including a note with face value of P 15, 000, and a P 6, 000 service charge.How much is the interest on the note collected by the bank? a. P 3, 000 O b. P 9, 000 O C. P 6, 000 d. P 12, 000