Reference no: EM13578465
On January 1, 2012, Richards Inc. had cash and common stock of $66,120. At that date the company had no other asset, liability or equity balances. On January 2, 2012, it purchased for cash $24,210 of equity securities that it classified as available-for-sale. It received cash dividends of $3,560 net of tax during the year on these securities. In addition, it has an unrealized holding gain on these securities of $6,020 net of tax. Determine the following amounts for 2012: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2012).
| (a) |
Net income |
$ |
| (b) |
Comprehensive income |
$ |
| (c) |
Other comprehensive income |
$ |
| (d) |
Accumulated other comprehensive income |
$ |
Linden Corporation is preparing its December 31, 2012, financial statements. Two events that occurred between December 31, 2012, and March 10, 2013, when the statements were issued, are described below.
- A liability, estimated at $164,920 at December 31, 2012, was settled on February 26, 2013, at $181,430.
- A flood loss of $81,380 occurred on March 1, 2013.
What effect do these subsequent events have on 2012 net income? (If there is no impact select not change and 0 for the amount.)
Net income will decrease/increase not change by $ _________________ as a result of the adjustment of the liability.
Net income will not change/ increase/ decrease by $ ________________ as a result of the adjustment of the flood loss.
Chris Spear invested $10,020 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? (Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use tables in text.)
| Investment at 8% annual interest |
$ ------------------------ |
| Investment at 8% annual interest compounded semiannually |
$ |
Amy Monroe wants to create a fund today that will enable her to withdraw $27,480 per year for 8 years, with the first withdrawal to take place 5 years from today. If the fund earns 9% interest, how much must Amy invest today? (Round the answer to zero decimal places, e.g. 120,250. Hint: Use tables in text.)
| Investment amount |
$ |
Zach Taylor is settling a $29,000 loan due today by making 6 equal annual payments of $7,053.54.
What payments must Zach Taylor make to settle the loan at the interest rate of 12%, but with the 6 payments beginning on the day the loan is signed? (Round answer to 2 decimal places, e.g. 2,250.25. Hint: Use tables in text.)
Zach Taylor is settling a $29,000 loan due today by making 6 equal annual payments of $7,053.54.
What payments must Zach Taylor make to settle the loan at the interest rate of 12%, but with the 6 payments beginning on the day the loan is signed? (Round answer to 2 decimal places, e.g. 2,250.25. Hint: Use tables in text.)
| Payments |
$ |