x**g
发帖数: 807 | 1 10. CPA
Finch Co. reported a total asset retirement obligation of $257,000 in last
year's financial statements. This
year, Finch acquired assets subject to unconditional retirement obligations
measured at undiscounted
cash flow estimates of $110,000 and discounted cash flow estimates of $68,
000. Finch paid $87,000
toward the settlement of previously recorded asset retirement obligations
and recorded an accretion
expense of $26,000. What amount should Finch report for the asset retirement
oblig | c*******n
发帖数: 913 | 2 B
A
S
E
Beginning PBO $257,000
Add: Current period Expenses +$68,000 (Using Discounted F/C)
+$26,000 (Expenses)
Subtract: Current payment -$87,000
Ending PBO: = $264,000
Hope can help.
Good luck to all of us! | x**g
发帖数: 807 | 3 非常感谢你的解释，很明白了，但是，why didn't use the undiscounted F/C for
the calculation?
thanks again | x**g
发帖数: 807 | 4 kent Cai,能再问一道吗？ 谢了。
CPA
A
firm has basic earnings per share of $1.29. If the tax rate is 30%, which of
the following securities would
be dilutive?
a. Cumulative 8%, $50 par preferred stock.
b. Ten percent convertible bonds, issued at par, with each $1,000 bond
convertible into 20 shares of
common stock.
c. Seven percent convertible bonds, issued at par, with each $1,000 bond
convertible into 40 shares of
common stock.
d. Six percent, $100 par cumulative convertible preferred stock, issued at
pa | c*******n
发帖数: 913 | 5 EPS will be dilutive is when company holds
1) Options, warrants. We will using treasury stock method to calculate the
diluted EPS.
2) Convertible bonds, preferred stock. Using if converted method.
In this question, we will using if converted method to determine whether
each choice will dilute the EPS or not.
3) Choice A, since it is merely preferred stock, it is not going to dilute
the EPS in any way. Then A is out.
4) Choice B,
Ten percent convertible bonds, issued at par, with each $1,000 bond |
|
