On December 1, 2012, Abel Corporation exchanged 30,000 shares of its $10 par value common stock
held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per
share, and are accounted for under
Marsh Co. had 2,400,000 shares of common stock outstanding on January 1 and December 31, 2013. In
connection with the acquisition of a subsidiary company in June 2012, Marsh is required to issue
100,000 additional shares of its com
1. Seasons Construction is constructing an office building under contract for Cannon Company.
The contract calls for progress billings and payments of $930,000 each quarter. The total contract
price is $11,160,000 and Seasons estimates total costs of $10,
1. In determining the present value of the prospective benefits (often referred to as the projected
benefit obligation), the following are considered by the actuary:
A. retirement and mortality rate.
B. interest rates.
C. benefit provisions of the plan.
1. Recognizing a valuation allowance for a deferred tax asset requires that a company
A. consider all positive and negative information in determining the need for a valuation
B. consider only the positive information in determining the need fo
During 2012, Woods Company purchased 40,000 shares of Holmes Corp. common stock for $630,000 as
an available-for-sale investment. The fair value of these shares was $600,000 at December 31, 2012.
Woods sold all of the Holmes stock