True/ False with explanations to all questions

1. Similar to an investment firm's creates an a n another firm's shares, the acquisition of a company's 2. The SEC permits gains ens and losses on treasury stock transactions to be reported on the income statement. on 3. Options and warrants they are always considered dilutive. are critical to the earnings per share computation because compensation plans are focused on stock option awards so as to e possibility that the employees receiving the grants will feel they are 4. Share-based minimize th receiving potentially no value. 5. The real ized gain or loss for the difference between the carrying value and the cash rece flows through OCI. ived from selling an AFS security is excluded from net income since it The accounting for the conversio stock may involve recognition of a gain or loss if the par value of the preferred stock is different from the par value of the common stock. n to common stock of convertible preferred o