What should be the diluted earnings per share for the year ended December 31, 2015, rounded to the nearest penny?

none of these answers are correct

$1.74

$1.57

$1.33

$1.78

2

Russell, Inc. acquired 30% of Dayton Corporation's voting stock on January 1, 2014 for $800,000. During 2014, Dayton earned $320,000 and paid dividends of $200,000. Russell's 30% interest in Dayton gives Russell the ability to exercise significant influence over Dayton's operating and financial policies. During 2015, Dayton earned $400,000 and paid dividends of $120,000 on April 1 and $120,000 on October 1. On July 1, 2015, Russell sold half of its stock in Dayton for $528,000 cash. What should be the gain on sale of this investment in Russell's 2015 income statement?

None of these answers are correct

$80,000

$110,000

$128,000

$98,000

3

Lakeshore Company purchased $2,000,000 of 8%, 5-year bonds from Rondon, Inc. on January 1, 2014, with interest payable on July 1 and January 1. The bonds sold for $2,083,160 at an effective interest rate of 7%. Using the effective-interest method, Lakeshore Company decreased the Available-for-Sale Debt Securities account for the Rondon, Inc. bonds on July 1, 2014 and December 31, 2014 by the amortized premiums of $7,080 and $7,320, respectively. At December 31, 2014, the fair value of the Rondon, Inc. bonds was $2,120,000. What should Lakeshore Company report as other comprehensive income and as a separate component of stockholders' equity?

$14,400

No entry should be made

None of these answers are correct

$51,240

$36,840

4

Russell Company purchased $900,000 of 8%, 5-year bonds from Carpenter, Inc. on January 1, 2014, with interest payable on July 1 and January 1. The bonds sold for $937,422 at an effective interest rate of 7%. Using the effective interest method, Russell Company decreased the Available-for-Sale Debt Securities account for the Carpenter, Inc. bonds on July 1, 2014 and December 31, 2014 by the amortized premiums of $3,186 and $3,294, respectively. At February 1, 2015, Russell Company sold the Carpenter bonds for $927,000. After accruing for interest, the carrying value of the Carpenter bonds on February 1, 2015 was $930,375. Assuming Russell Company has a portfolio of available-for-sale debt investments, what should Russell Company report as a gain (or loss) on the bonds?

($26,433)

($19,683)

($3,375)

$0

None of these answers are correct