In January 2014, Finley Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2014, Finley Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares: Select one o a decreased the number of issued shares. b. did not change total stockholders' equity. o c.increased total stockholders' equity. O d. decreased total stockholders' equity. Hopkins Co. at the end of 2014, its first year of operations prepared a reconciliation between pretax financial income and taxable income as follows: Not yet answered Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income $1,500,000 2.000.000 (3,000,000) $ 500,000 The estimated litigation expense of $2,000,000 will be deductible in 2015 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1,000,000 in each of the next three years. The income tax rate is 30% for all years. Income taxes payable is Select one: 0 a $0. b. 5300,000 o c. $150,000 to 10 Fleming Company provided the following information on selected transactions during 2015: Doints out of 3.14 Dividends paid to preferred stockholders $ 250,000 Loans made to affiliated corporations 700,000 de astion 10 Fleming Company provided the following information on selected transactions during 2015 wered Flag estion Dividends paid to preferred stockholders $ 250,000 Loans made to affiliated corporations 700,000 Proceeds from issuing bonds 800,000 Proceeds from issuing preferred stock 1050,000 Proceeds from sale of equipment 400,000 Purchases of inventories 1.200,000 Purchase of land by issuing bonds 300,000 Purchases of treasury stock 600,000 The net cash provided (used) by financing activities during 2015 is Select one: o a. 5550,000 b. (1,650,000), c. $1,000,000 d. $1,300,000 Question 11 Not yet antwered Marnie Company enters into a two-year lease. The terms of the lease do not transfer ownership and do not contain a bargain purchase option. The lease is for 60% of the asset's economic life and represents 80% of its fair value. The asset is not a specialized asset and does have alternative uses. How should Marnie classify and record the lease? Points out of Select one a. The lease should be classified as an operating lease, and a lease labey should be recorded at the inception of the lease b. The lease should be classified as a short-term lease because it is for only two years The lease is classified as an operating lease, and no lease b y is recorded at the inception because it does not meet finance lease criteria d. The lease should be classified as a finance lease and a lease aby should be recorded at the ception
