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1. Corrine Company (Investor) owns 25% of the stock of Joan, Inc. (Investee). Joan, Inc reports profits of $2,662,000. Joan also pays a total $299,000 dividend to its shareholders during the same period. Corrine Company will report equity incomeof:

a.	$964,500
b.	$74,750
c.	$740,250
d.	$665,500

1i. What is the total effect of a stock dividend on the balance sheet?

a. Stockholders equity is decreased

b. Retained earnings is increased

c. No effect total stockholders equity stays the same, but total number of shares increases

d. Additional paid in capital is decreased

ii._____

A corporation has 5,120,000 shares of $100 par value stock outstanding. If the corporation issues a 2-for-1stock split, the number of shares outstanding after the splitwill be:

a. 2,560,000 shares.

b. 10,240,000 shares.

c. 51,200 shares.

d. 512,000,000 shares.

______iii. Listed below are Special Items that may be reported in the income statement. All items are reported net of tax, except:

1. Discontinued Operations: examplesegment of business placed up for sale
2. Net income attributable to non-controlling interests
3. Extraordinary items: examplecasualties from natural disasters

d.Equity earnings: exampleproportionate share of earnings from a non-controlling interest held

e.Unusual or infrequent item disclosed separately: examplerestructuring charges

______iiii. Which of the following is notincluded as a component of Accumulated Other Comprehensive Income?

1. Foreign current translation adjustments
2. Changes in Stockholders Equity due to minimum pension liability adjustments
3. Treasury Stock
4. Unrealized gains and losses due to fair value accounting for derivative instruments
5. All of the above are included