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For Michael I. F717273. Please see attachment for...

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For Michael I. F717273. Please see attachment for this assignment. Thank you. Big Brown Corporation's derivative instruments had the following fair values at December 31, Year 1 and December 31, Year 2: 12/31/Year 1 12/31/Year 2 Speculative derivatives $280,000 $310,000 Derivatives used as fair value hedges $600,000 $745,000 Derivatives used as cash flow hedges $430,000 $510,000 The derivatives used as fair value hedges and cash flow hedges were both considered highly effective in 20X7. What amount of gain from these derivative investments should Big Brown report in its Year 2 net income and other comprehensive income? Net income OCI A. $0 $255,000 B. $80,000 $175,000 C. $175,000 $80,000 D. $255,000 $0 Division Corporation has 20,000 shares of $5.00 participating 9 percent cumulative preferred stock and 100,000 shares of $2.00 common stock. On July 1, the board of Division declared a $30,000 dividend at the time the common stock was selling for $25 per share and the preferred stock was selling for $30. The total dividends paid to each class of stock on the payment date was: Preferred Common A. $10,000 $20,000 B. $16,000 $14,000 C. $12,500 $17,500 D. $9,500 $20,500 Kuchman Kookware issued 40,000 shares of its $8.00 par value common stock for $9 on January 1, Year 1. Kuchman repurchased 1,000 shares at $8 per share on April 1, Year 2, resold 500 shares at $9 per share on July 1, Year 2, and, on October 1, Year 2, resold the final 500 shares at $5 per share. Assuming Kuchman uses the par value method of accounting for its treasury stock, retained earnings at December 31, Year 2 would be reduced by: A. $0 B. $500 C. $1,000 D. $1,500

 

Paper#4767 | Written in 18-Jul-2015

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