see attached document, Please solve the questions from 1-13

1. A company reports the following information as of December 31st: Sales revenue $350,000 Cost of goods sold $150,000 Operating expenses $110,000 Foreign currency translation gain $ 25,000 Ignoring income taxes, what amount should the company report as net income as of December 31st? $125,000 $90,000 $150,000 $115,000 2. A company reports the following information as of December 31st: Sales revenue $350,000 Cost of goods sold $150,000 Operating expenses $110,000 Foreign currency translation gain $ 25,000 Ignoring income taxes, what amount should the company report as comprehensive income as of December 31st? $90,000 $150,000 $115,000 $125,000 3. Peer Inc. is a publicly-traded enterprise and therefore must disclose information regarding its operating segments. Which of the following should be disclosed for each of Peer's reportable operating segments? A. Both profit and loss and total assets must be reported. B. Neither total assets, not profit and loss must be reported. C. Only profit and loss, but not total assets must be reported. D. Only total assets, but not profit and loss must be reported. I 4. When applying the revenue test to determine if a segment is a reportable segment, the segment's revenues are compared to the total for the entity. Which of the following revenue items should be included in the revenue calculation? Sales to unaffiliated customers II III Interest earned from loans to other segments Intersegment sales of products I and II only I only I and III only I, II, and III 5. Capstone Corp. reported $150,000 of comprehensive income for 2014. It also reported the following: Beginning retained earnings $300,000 Income tax expense $ 60,000 Ending retained earnings $320,000 Cash dividends declared $ 80,000 Other comprehensive income $ 50,000 What was Capstone's net income for 2014? $40,000 $140,000 $120,000 $100,000 6. Capsule Corp. reported the following in 2014: Beginning retained earnings Ending retained earnings Cash dividends declared Beginning accumulated other comprehensive income Ending accumulated other comprehensive income $260,000 $290,000 $90,000 $20,000 $15,000 What was Capstone's comprehensive income for 2014? $125,000 $115,000 $65,000 $55,000 7. Which of the following statements is true regarding earnings per share (EPS) disclosures under GAAP? All companies are required to report EPS amounts related to net income only. A public company with dilutive securities may choose to report diluted EPS. Basic earnings per share is found by dividing net income available to stockholders by the number of common shares outstanding as of the balance sheet date. All public companies are required to report EPS amounts related to income from continuing operations, income from discontinued operations, and net income. 8. Which of the following is not considered an appropriate means of measuring an element of financial reporting in monetary terms? a. Replacement cost b. Present value c. Expected fair value d. Net realizable value 9. Maholm Company declared a cash dividend payable to common stockholders of record as of December 24, 2014. The dividend was declared on December 10, 2014 and will be paid on January 7, 2015. On what date or dates will stockholders' equity decrease as a result of the dividend? a. December 10, 2014 and January 7, 2015 b. December 24, 2014 only c. January 7, 2015 only d. December 10, 2014 only IV V VI 10. Under U.S. GAAP, which of the following would be included in accumulated other comprehensive income as a component of stockholders' equity on the balance sheet? Assume no fair value election for reporting investments. Unrealized fair value gains or losses on held-to-maturity investments Foreign currency translation adjustments Certain gains and losses on derivative financial instruments designated as fair value hedges. a. I and III only. b. II only. c. I, II, and III. d. III only. 11. Regarding a company's reporting of assets on the balance sheet, which of the following statements is correct? a. The removal of any outside restriction on the use of the asset must be at least probable. b. In certain circumstances, valuable resources which are likely to provide future economic benefits to the company (such as a brand name) may not be reported on the balance sheet if they are not reliably measurable. c. The asset must have at least provided benefits in the past. d. Acquisition of the asset must be at least probable. 12. During 2013, customers purchased gift cards from LatteBucks, all of which expire on December 31, 2015. At the end of 2014, some of the gift cards still have not been redeemed. How should the unredeemed gift cards be reported on LatteBucks's 2014 year-end financial statements? a. As a prepaid asset on the balance sheet b. As sales revenue on the income statement c. As an expense on the income statement d. As a current liability on the balance sheet VII VIII IX 13. U.S. GAAP requires which of the following to be reported at fair value in a company's financial statements? Bonds payable Stock options held as an investment Written loan commitments a. III only. b. II and III only. c. II only. d. None of the above