Quiz 10 Fall 2011 - income will increase based on this information True or False True or False If Longhorn Corporation’s stock price was $15 on

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NAME_________________________________ ACC 311 - Quiz 10 - 5 point each On January 5 th , 2009 Bear Corporation purchased 10,000 shares of Longhorn Corporations stock for $10 per share. Bear owns less than 20% of their outstanding stock, which makes this a passive investment. Bear Corp publishes financial statements on December 31 each year. Circle the appropriate answer for the following questions (ignore taxes): If the investment is treated as: Trading Securities TS Available for Sale Securities SAS If Longhorn Corporation’s stock price was $12 on 12/31/2009 then Bear Corporation’s 2009 net
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Unformatted text preview: income will increase based on this information. True or False True or False If Longhorn Corporation’s stock price was $15 on 12/31/2010 then Bear Corporation’s 12/31/2010 total assets will increase based on this information. True or False True or False Net Unrealized Gains/Losses close to an income statement account and then to retained earnings. True or False True or False If Bear Corporation sold all of their Longhorn Corporation stock on 12/15/2011 for $18 per share then Bear Corporation’s 2011 net income will contain a realized gain. True or False True or False...
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This note was uploaded on 12/13/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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