PLEASE ANSWER ALL FOUR QUESTIONS

1. Seattle Company began the year with liabilities of $500,000 and owners equity of $300,000. During the year, Seattle borrowed $40,000 and sold stock of $40,000. Compute Seattle Companys debt-to-equity ratio at the end of the year.

Group of answer choices

0.62 to 1

2.5 to 1

1.67 to 1

1.59 to 1

0 .60 to 1

2. In 20X9, Fire Company had earnings before interest and taxes of $900,000 and interest expense of $180,000. Which of the following is Fires times interest earned during the year?

Group of answer choices

0.8 times

1.2 times

2.0 times

0.2 times

5.0 times

3. Gillian Company reports a gain on its income statement in the current year, but will not report it on its tax return for 2 years. Which of the following is true of Gillian?

Group of answer choices

Gillian will report a deferred income tax liability in the third year.

Gillian will still need to pay to the IRS in the current year for the tax due on the gain.

Gillian will have a lower reported net income than taxable income in Year One.

Gillian will report gain, net of tax on Year Two income statement.

Gillian will report tax expense on the gain in the current year.

4. Unlike other long-term liabilities, no interest is calculated on postretirement benefits.

Group of answer choices

True

False