QUESTION 4 The account, Paid-in-Capital Stock Options, should be classified as ank liability. reduction of capital contributed in excess of par value asset. component of stockholders' equity QUESTIONS On January 2, 2020. Farr Co. issued 10 year convertible bonds at 105. During 2020, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. On January 2, 2020, the cash received when issuing the convertible bonds should be reported as: paid.in capital for the entire proceeds. pald-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance aliability for the face amount of the bonds and paid in capital for the premium over the face amount. aliability for the entire proceeds QUESTION During 2020, Woods Company purchased 40,000 shares of Holmes Corp.common stock for $630,000 as Investment The fair value of these shares was $600.000 at December 31, 2020 Woods sold all of the Holmes stock for $17 per share on December 3, 2021, incurring $20,000 in brokerage commissions Woods Company should report a realized in on the sale of stock in 2001 of $22,000 $50,000 552.000 580.000 11 QUESTION 7 With respect to the computation of earnings per share, which of the following would be most indicative of a simple capital structure? Common stock preferred stock, and convertible bonds outstanding in lots of even thousands Earnings derived from one primary line of business Ownership interest consisting solely of common stock No potentially dilutive Securities Chi Sund Subro Sud CS AT A worn