Crystal Corporation earned net income of $750,000 in 2016. It has a complex capital structure as follows: 10,000 shares outstanding of 10%, $100 preferred stock, and 150,000 shares issued of $5 common stock. There is also 20,000 common stock in the treasury. The preferred stock can be converted into 25,000 shares of common. In addition Crystal has Bonds Payable of $250,000 that pay interest of 8% and can be converted into 10,000 shares of common stock. The applicable federal income tax rate is 40%.

Calculate the basic earnings per share for 2016.

Calculate the diluted earnings per share for 2016.

Sally, age 66, single, earned income of $42,000 in 2020 and had $2,000 of deductions for adjusted gross income and itemized deductions of $4,000. Sally is legally blind for tax purposes. Sally is also eligible for a tax credit of $1,000. What is Sally's taxable income if she wishes to minimize her tax?

Question options: $26,300

$20,300

$21,300

$24,300

None of the above choices are correct.

Actual Cost, planned value and earned value of the activities of an ongoing project after 5 months and after 8 months are given below. All values and costs are in Rs lakhs. Comment on status of the

a) Activities (Activity delayed/early, activity cost overrun/underrun)

b) status of project and estimated total cost at completion at 5 months and at 8 months.

After 5 months   

Activity. EV PV AC Comment   

A 10 10 8   

B 18 15 12

C 15. 20 25

D 40 30. 35

E 25 25. 25

F 25 20 15

G 10 15 10

After 8 months

Activity EV PV AC Comment  

A 20 40 45

B 25 25 20

C 15 30 25

D 70 60 40

E 70 70 80

F 40 40 40

G 30 40 20

Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $750 and promise to pay back $795 at the end of 1 year. % You lend $750 and the borrower promises to pay you $795 at the end of 1 year. % You borrow $71,000 and promise to pay back $467,185 at the end of 12 years. % You borrow $14,000 and promise to make payments of $3,693.20 at the end of each year for 5 years.

Which of the following statements is INCORRECT?

Select one:

a. Earned Capital consists of Retained Earnings and Accumulated Other Comprehensive Income.

b. Shares of Treasury Stock cannot be reissued in the stock market.

c. Treasury Stock is comprised of shares that the firm repurchases in the stock market.

d. Unrealized increases and decreases in value on securities held as investments (AFS investments) are included in Accumulated Other Comprehensive Income.

What is the name of a security that has optional annual payments of a fixed amount, does not have to be paid back to the investor, and is second-to-the-last to receive assets from the firm in the case of bankruptcy?

Select one:

a. Mandatorily Redeemable Preferred Stock

b. Preferred Stock

c. Bond

Which of the following statements is INCORRECT?

Select one:

a. Preferred Stocks generally do not have voting rights.

b. The number of outstanding shares is always larger than the number of authorized shares.

c. “Additional Paid in Capital – Common Stock” is the value of common stock issued in excess of the par value.

d. The shareholder’s equity is composed of Contributed Capital, Earned Capital, and Treasury Stock.

d. Convertible Subordinated Debenture

Which of the following journal entries is INCORRECT for the described transaction?

Select one:

a. Buyback 1,000 shares of common stock (par value of $1 and original issue price of $50) at $55 and retire these shares.

b. Declare Large Stock Dividend (>25%) of 20,000 shares with market price of $50 and Par of $1.

c. Issued 10,0000 common stocks with a par value of $1 for $10 a share.

d. Declare Small Stock Dividend (< 25%) of 1,000 shares with market price of $50 and Par of $1.

The earned income tax credit:

Select one:

a. all of the above.

b. has increased in recent years.

c. is available to low-income eligible working people.

d. is refundable.

Which tax brings in the greatest share of federal government tax revenue?

Select one:

a. tariffs

b. federal excise taxes

c. federal personal income tax

d. social security tax

Which of the following is a tool of expansionary fiscal policy?

Select one:

a. increased taxes.

b. increased government purchases of goods and services.

c. reduced transfers.

d. reduced regulations.

Which type of inflation can result from wage rates that cause production cost increases?

Select one:

a. none of the above.

b. profit-push inflation.

c. cost-push inflation.

d. demand-pull inflation.

Which of the following is true? Economic conservatives believe that the marketplace:

Select one:

a. is efficient.

b. provides incentives.

c. encourages economic growth.

d. all of the above.

Jon and Sara have two dependent ( age 5 and 6 ) Jon earned 40999 in 2017. they had no other income . Sara did not work but was a full time student for 9 months . they paid 4600 in qualifying child care expense for 2 kids during the time Jon worked and Sara at school. What is the correct amount of child and dependent care expense?

473

966

990

1012

2. in July 2017 Elias purchased a new computer system for his business for 3800 . What is the depreciation for the first year, if he opts out of special depreciation ?

380

760

1900

2280