INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
3rd Edition
ISBN: 9780136946601
Author: GORDON
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem 1BCC
Basis for Conclusions Case 1: Antidilutive Securities
Read paragraphs 95 through 99 m Appendix B Background information and basis tor conclusions in FASB s Statement of Financial Accounting Standards No 128
Required
- a. Why did the Board decide lo require an antidilution sequence that considers securities m the order of most dilutive to least dilutive?
- b. What line items could appear on an income statement after income from continuing operations but before net income? Note that when Statement of Financial Accounting Standards No 128 was written companies reported extraordinary items and the effect of changes in accounting principles on the income statement after income from continuing operations. This is no longer true
- c. The FASB chose income from continuing operations as the number that should be used to determine whether sec unties are dilutive or antidilutive. Why did it choose income from continuing operations as opposed to net income?
- d. Did the constituents who wrote comment letters about the exposure draft of Statement of Financial Accounting Standards No 128 agree with the use of income from continuing operations as opposed to net income as the control number for the determination of which securities are dilutive?
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Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)
A. Fair Value Adjustment G. Available-for-sale debt securities
B.Statement of Cash Flows H. Equity holdings between 20% and 5%
C. Trading debt securitiesI. Temporary differences, deferred tax asset
D. Equity holdings less than 20%
J. Permanent differences
E. Held-to-maturity debt securities
K. Temporary differences, deferred tax liability
F. Statute of Limitations
L. Equity holdings more than 50%
1. Premiums paid on life insurance of officers (company is the beneficiary).
____ 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned
.____ 3. Consolidation of financial statements; parent and subsidiary company income or loss combined.
____ 4. Estimated future warranty costs
.____ 5. Represents the increase in taxes refundable (or saved) in future yearsas a…
Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)A. Fair Value Adjustment G. Available-for-sale debt securities B. Statement of Cash Flows H. Equity holdings between 20% and 50% C. Trading debt securitiesI. Temporary differences, deferred tax assetD. Equity holdings less than 20% J. Permanent differences E. Held-to-maturity debt securities K. Temporary differences, deferred tax liability F. Statute of Limitations L. Equity holdings more than 50% ____ 1. Premiums paid on life insurance of officers (company is the beneficiary).____ 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned.____ 3. Consolidation of financial statements; parent and subsidiary company income or loss combined.____ 4. Estimated future warranty costs.____ 5. Represents the increase in taxes refundable (or saved) in future yearsas a result of deductible temporary…
Chapter 20 Solutions
INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 1JCCh. 20 - Prob. 1FSCCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
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