If the market price of a stock is $90 per share and it is split 3 for 1, to appr
ID: 2490823 • Letter: I
Question
If the market price of a stock is $90 per share and it is split 3 for 1, to approximately what will the price change? $270 No change $66.67 $30 Martin Company discovers an error has been made in a prior year which cause an understatement of income in that year. If this is deemed to be a prior period adjustment, which of the following will be true? The error is shown on the current year income statement net of tax The error is shown as a credit to the beginning balance of retained earnings for the current year The error is shown as a debit to the beginning balance of retained earnings for the current year The prior year statement is revised How much would a corporation receive for a bond issue of 5-year, 10%, $12,000 bonds dated January 1, 2004, sold at 98? $12,240 $12,000 $11,760 $10,760 9. With each amortization of a bond discount the carrying value will: increase decrease increase in the early years, then decrease at maturity neither increase nor decrease What happens to Interest Expense as a result of amortizing a bond discount and bond premium? Increase for premium; decrease for discount Increase for both premium and discount Decrease for both premium and discount Decrease for premium; increase for discount Under the cost method, how is the investee net income recorded by the investor? As a credit directly to retained earnings It is not recorded As an addition to the net income of the investor As a special subtraction from the net income of the investorExplanation / Answer
(6) $90 share split into 3 shares, $90/3 = $30 Each Share price
(8) Corporation receives = $12000 * 98% = $11760
(9) decrease
(10) Increase for premium, decrease for discount