The cumulative effects of other comprehensive income items may be reported separately from retained earnings and paid-in capital, on the balance sheet, as accumulated other comprehensive income. Select one: O True O False On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee. The journal entry for the sale would include a Select one: O a. debit to Cash, $112,000 O b. debit to Cash, $111,840 O C. credit to Investments-Lucas Company Stock, $112,000 O d. credit to Loss on Sale, $23,680 Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,000 and declared dividends of $35,000 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? MacBook Air 000 O00 F4 F5 F6 F7 F8 F2 F3 & * 4 6. 7 8 %24 %#3

Use this information for Pierce Company to answer the following questions. On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest. The joumal entry Pierce will record on February 1 will include a Select one: O a. credit to Cash for $52,500 O b. credit to Interest Receivable for $600 O C. credit to Interest Revenue for $1,500 O d.credit to Gain on Sale of Investments for $1,500 In order to maintain a record of the original cost of a trading security, the fair value adjustments are debited or credited to the account Valuation Allowance for Trading Investments. Select one: O True O False MacBook Air po F7 BO F3 F6 F5 7 F2 # 3 $ 4 % 5 & 7 6 8 2