16. Which one of the following types of losses is excluded from the determinatio

Question

16. Which one of the following types of losses is excluded from the determination of net income in income statements for a Company using U.S. GAAP?

aMaterial losses resulting from transactions in the company’s investments account.

bMaterial losses resulting from unusual sales of assets not acquired for resale.

cMaterial losses resulting from the write-off of intangibles.

dMaterial losses resulting from unrealized holding losses on Available for Sale Securities.

17. In 2015,Tyler Easternight Corporation reported net income of $500,000. It declared and paid common stock dividends of $200,000. Tyler also declared but did not pay preferred stock dividends of $100,000. Chukuka had a weighted average of 100,000 shares of common stock as well as a weighted number of 50,000 shares of preferred stock outstanding. Compute the earnings per share.

a.$1.33

b.$2.00   

c.$6.00

d.$4.00

e.$5.00

Explanation / Answer

17..

earnings per share = ( net income - preferred dividend ) / weighted common outstaning shares

( 500000- 100000) / 100000 = 4

so answer is d.$4.00

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