Which of the following amounts must be determined to account for the income tax?

Question 4 options:

	Income tax expense and income tax payable must be determined.
	Income tax expense and rate of return on stockholders' equity must be determined.
	Rate of return on stockholders' equity and rate of return on total assets must be determined.
	Income tax payable and rate of return on total assets must be determined.

Case 11.6 The following information is from the books of Eastern Corporation. Net income $170,000 Preferred dividends 24,000 Interest expense 17,500 Beginning of the year amounts: Total assets 900,000 Total liabilities 375,000 Total common stockholders' equity 395,000 End of the year amounts: Total assets 930,000 Total liabilities 405,000 Total common stockholders' equity 435,000 Refer to Case 11.6. Which of the following is the return on assets for Eastern Corporation?

Question 5 options:

	20. 5%
	17. 5%
	19. 2%
	16. 8%

A corporation's stockholders' equity includes the following amounts as of December 31, 2009: Preferred stock, cumulative, 10%, $100 par $100,000 Paid-in capital in excess of par preferred 200,000 Common stock, $50 par 300,000 Paid-in capital in excess of par common 200,000 Donated capital 50,000 Retained earnings 500,000 The corporation declared a dividend of $5,000 in 2008. No dividends were declared in 2009. Prior to 2008, there were no dividends in arrears. Which of the following are the book values per share for preferred stock and common stock?

Question 6 options:

	The book values per share are $100 for preferred stock and $208.33 for common stock.
	The book values per share are $115 for preferred stock and $205.83 for common stock.
	The book values per share are $110 for preferred stock and $206.67 for common stock.
	The book values per share are $120 for preferred stock and $205.00 for common stock.