11. As of Dec 31" 2019. Amold-SA Co reported a net income of $300,000 in 2019 and had 100,000 ordinary shares outstandin

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11 As Of Dec 31 2019 Amold Sa Co Reported A Net Income Of 300 000 In 2019 And Had 100 000 Ordinary Shares Outstandin 1 (94.04 KiB) Viewed 12 times

11. As of Dec 31" 2019. Amold-SA Co reported a net income of $300,000 in 2019 and had 100,000 ordinary shares outstanding throughout the year. Since Jan 1 2019, Arnold-SA Co hold 800,000 of 10% bonds, which are convertible into 20,000 ordinary shares. The interest expense on the liability component of the convertible bonds was $64,000. Arnold-SA Co tax rate is 40%. In addition, Arnold-SA Co holds 100,000, 5% cumulative preferences shares (par of $10) were purchased on January 1st 2019, every preference share is convertible to 1 ordinary share. Arnold-SA's 2019 reports diluted earnings per share of (round to 2 decimals) a. $2.40 b. $3.00 c. $1.54 d. $1.60 e. All incorrect 12. Debt investments not held for collection are reported at a Amortized cost. b. Fair value. The lower of amortized cost or fair value. Net realizable value C. d. e. None of the above correct 13. Debt investment held for trading should be reported at investment held for collection and selling should be reported at respectively: a. Amortized cost, Fair value b. Fair value, amortized c. Fair value, Fair value d. Face value, amortized cost e. All incorrect 14. Unrealized holding gain or loss on non-trading securities affects: a. Other comprehensive income. b. Net income. c. Share-Capital-preference d. Other income and expense e. All incorrect ... While de 15. on January 1st 2016, ABC Co purchases equity investment of 400,000 ordinan CBSD Co (out of 1,200,000 shares) for $15 per share with no purpose for q gains. Assuming that ABC cannot exercise a significant influence over Hence, ABC Co accounts for the equity investment using: a. Fair Value b. Equity Method c. Consolidation method d. Amortized cost e. None of the above correct