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Moss corp owns 20 of dubro corps preferred stock and

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13.Moss Corp. owns 20% of Dubro Corp.’s preferred stock and 80% of its common stock. Dubro’s stockoutstanding at December 31, year 1, is as follows:10% cumulative preferred stock100,000 Common stock 700,000 Dubro reported net income of60,000for the year ended December 31, year 1. What amount should Moss record as equity in earnings ofDubro for the year ended December 31, year 1?a.42,000b.48,000c.48,400d.50,000
14.Wood Co. owns 2,000 shares of Arlo, Inc.’s 20,000 shares of100 par,6% cumulative, nonparticipatingpreferred stock and 1,000 shares (2%) of Arlo’s common stock. During year 2, Arlo declared and paiddividends of240,000 on preferred stock. No dividends had been declared or paid during year 1. Inaddition, Wood received a5% common stock dividend from Arlo when the quoted market price of Arlo’scommon stock was10 per share. What amount should Wood report as dividend income in its year 2income statement?
15.Stone does not use the fair value option to account for available-for-sale securities. Informationregarding Stone Co.’s portfolio of available-for-sale securities is as follows:Aggregate cost as of 12/31/Y2170,000Unrealized gains as of 12/31/Y2 4,000Unrealized losses as of 12/31/Y2 26,000Net realized gains during year 2 30,000At December 31, year 1, Stone reported an unrealized loss of1,500 in other comprehensive income toreduce these securities to fair value. Under the accumulated other comprehensive income instockholders’ equity section of its December 31, year 2 balancesheet, what amount should Stonereport?0
416. Carsen Company purchased200,000 of 10% bonds of Garrison Co. on January 1, 2019, paying211,950.The bonds mature January 1, 2026; interest is payable each July 1 and January 1. The discount of11,950provides an effective yield of 9%. Carsen’s objective is to hold the bonds to collect the contractual cashflows. Carsen Company uses the effective interest method.1.On July 1, 2019, Carsen Company should decrease its Held-for-collection Debt Investmentsaccount for the Garrison Co. bonds by:

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1966, 1981, 1986, 1971, 1970

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