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Test #4 practice test.docx - Practice Test #4 1. On January...

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Practice Test #41.On January 1, 2017, Bramble Corp. issued eight-year bonds with a face value of $100,000 and astated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were soldto yield 10%. Table values are:Present value of 1 for 8 periods at 10%0.467Present value of 1 for 8 periods at 12%0.404Present value of 1 for 16 periods at 5%0.458Present value of 1 for 16 periods at 6%0.394Present value of annuity for 8 periods at 10%5.335Present value of annuity for 8 periods at 12%4.968Present value of annuity for 16 periods at 5%10.838Present value of annuity for 16 periods at 6%10.106The issue price of the bonds is2.A company issues $2,000,000, 5.5%, 20-year bonds to yield 8% on January 1, 2017. Interest is paidon June 30 and December 31. The proceeds from the bonds are $1,505,181. Using effective-interestamortization, how much interest expense will be recognized on June 30, 2017?3.A company issues $2,000,000, 5.5%, 20-year bonds to yield 8% on January 1, 2017. Interest is paidon June 30 and December 31. The proceeds from the bonds are $1,505,181.. Using effective-interestamortization, what will the carrying value of the bonds be on the June 30, 2017 balance sheet?4. At December 31, 2017 the following balances existed on the books of Sheridan Company:Bonds Payable$1,000,000Discount on Bonds Payable17,000If the bonds are retired on January 1, 2018, at 101, what will Sheridan report as a loss on redemption?5.Marigold Corp. acquired 11,000 shares of its own common stock at $20 per share on February 5,2017, and sold 5,000 of these shares at $25 per share on August 9, 2018. The cost method is used torecord treasury stock transactions. What account(s) should Marigold credit in 2018 to record the sale of5,000 shares?6.Bramble Corp., has 1,000 shares of 10%, $50 par value, cumulative preferred stock and 100000shares of $1 par value common stock outstanding at December 31, 2018, and December 31, 2017.The board of directors declared and paid an $3000 dividend in 2017. In 2018, $40000 of dividends aredeclared and paid. What are the dividends received by the preferred stockholders in 2018?
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/South-Western-Federal-Taxation-2020-Individual-Income-Taxes-43rd-Edition-9780357109151-1161/
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Chapter 20 / Exercise 47
South-Western Federal Taxation 2020: Individual Income Taxes
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7.Sheridan Company has 100,000 shares of $10 par value common stock outstanding. During theyear, Sheridan declared a 11% stock dividend when the market price of the stock was $18 per share.Four months later Sheridan declared a $1 per share cash dividend. As a result of the dividendsdeclared during the year, retained earnings decreased by8.Bonita Industries has outstanding 20,000 shares of $20 par common stock and 100,000 shares ofno-par 6% preferred stock with a stated value of $10. Dividends have been paid in every year exceptthe past two years and the current year.Assuming that $200,000 will be distributed, and the preferred stock is cumulative and participating,how much will the common stockholders receive?9.Dotel Company's 12/31/15 balance sheet reports assets of $10,000,000 and liabilities of$4,750,000. All of Dotel's assets' book values approximate their fair value, except for land, which has afair value that is $500,000 greater than its book value. On 12/31/15, Egbert Corporation paid$11,000,000 to acquire Dotel. What amount of goodwill should Egbert record as a result of thispurchase?10.

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Term
Fall
Professor
CraigVilhauer
Tags
Balance Sheet, Dividend
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Individual Income Taxes
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 47
South-Western Federal Taxation 2020: Individual Income Taxes
Young/Nellen/Hoffman
Expert Verified

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