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Option d 64. Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January
2013. In December, Hart announced $200,000 net income for 2013 and declared and paid a cash dividend
of $2 per share on the 200,000 shares of outstanding common stock. Zwick Company's dividend revenue
from Handy Corporation in December 2013 would be:
D. None of the above is correct. 65. On January 2, 2012, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock
for $50,000 and classified the investment as available for sale. Ranger's net income for the years ended
December 31, 2012 and 2013, were $10,000 and $50,000, respectively. During 2013, Ranger declared
and paid a dividend of $60,000. There were no dividends in 2012. On December 31, 2012, the fair value
of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody
show in the 2013 income statement as income from this investment?
66. Jeremiah Corporation purchased securities during 2013 and classified them as securities available for
sale: All declines are considered to be temporary. How much gain will be reported by Jeremiah Corporation in
the December 31, 2013, income statement relative to the portfolio?
D. None of the above is correct.
67. Hawk Corporation purchased 10,000 shares of Diamond Corporation stock in 2010 for $50 per share and
classified the investment as securities available for sale. Diamond's market value was $60 per share on
December 31, 2011, and $65 on December 31, 2012. During 2013, Hawk sold all of its Diamond stock at
$70 per share. In its 2013 income statement, Hawk would report:
A. A gain of $50,000.
B. A gain of $150,000.
C. A gain of $200,000
D. A gain of $300,000.
68. Dim Corporation purchased 1,000 shares of Witt Corporation stock in 2010 for $800 per share and
classified the investment as securities available for sale. Witt's market value was $400 per share on
December 31, 2011...
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- Spring '09
- Balance Sheet, A. Securities