yis required to report both basic and diluted earnings per share when A A) compa
ID: 2593888 • Letter: Y
Question
yis required to report both basic and diluted earnings per share when A A) company reports both net income and comprehensive income B) company has discontinued operations C) company's capital structiure includes convertible preferred stock D) company has extraordinary gains and losses the 18) On August 1, Central Computers, Inc. purchased thirty computer chips, on 16) account, from a company located in Taiwan for 500,000 Taiwan dollars. On that date the Taiwan dollar is worth 50.040. On September 1, when the Taiwan dollar was worth $0.038, payment was made. The journal entry to record the payment on September 1 would include a: A) credit to Cash $20,000. B) debit to Accounts Payable $19,000 C) credit to Foreign-Currency Transaction Gain $1,000 D) debit to Foreign-Currency Transaction Loss $1,000 19) A company is required to report both basic and diluted earnings per share when ther A) company reports both net income and comprehensive income B) company has discontinued operations C) company has extraordinary gains and losses. D) company's capital structure includes convertible preferred stock. 20) A) Writing-down inventory to lower-of-cost or market B) Losses from the sale of property C) Losses from a labor dispute D) Losses from a natural disaster 20) Which of the following would be considered an extraordinary item?Explanation / Answer
17) c) Companys capital structure includes convertible preferred stock.
Both Basic and Diluted EPS are reported in case of Complex Capital Strcuture.
18) c) Credit to Freign-Currency Transaction Gain - $1,000
Transaction Gain = 500,000 T$ x ($0.040 - $0.038)
19) d) Companys capital structure includes convertible preferred stock.
20) d) Losses from a natural disaster
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