Chapter 17 quiz question

Chapter 17 quiz question - QUIZ #1: CHAPTER 17 Name: _...

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Name: __________________________ Date: _____________ 1. All of the following statements regarding accounting for derivatives are correct EXCEPT that A) they should be recognized in the financial statements as assets and liabilities. B) they should be reported at fair value. C) gains and losses resulting from speculation should be deferred. D) gains and losses resulting from hedge transactions are reported in different ways, depending upon the type of hedge. Use the following to answer question 2: Garrison Co. owns 20,000 of the 50,000 outstanding shares of Steele, Inc. common stock. During 2008, Steele earns $800,000 and pays cash dividends of $640,000. 2. Garrison should report investment revenue for 2008 of A) $320,000. B) $256,000. C) $64,000. D) $0. 3. Kennett Corporation purchased 25,000 shares of common stock of the Swenson Corporation for $40 per share on January 2, 2008. Swenson Corporation had 100,000 shares of common stock outstanding during 2008, paid cash dividends of $60,000
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This note was uploaded on 03/23/2010 for the course ACCT 120xC taught by Professor Dr.lillie during the Spring '10 term at UCLA.

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Chapter 17 quiz question - QUIZ #1: CHAPTER 17 Name: _...

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