For accounting purposes, the use of the cost method or the equity method used to account for long-term investments in common stock is determined by A. the amount paid for the stock by the investor. B. the extent of an investor's influence on the operating and financial affairs of the investee. C. whether the stock has paid dividends in past years. D. whether the market price of the stock changed during the year. The balance in the Unrealized Loss-Available for Sale account will A. appear on the balance sheet as a contra asset. B. appear on the income statement under Other Expenses and Losses. C. appear as a deduction in the stock/bIders' equity section. D. not be shown on the financial statements until the securities are sold. A company projects an increase in net income of $45,000 each year (or the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $100,000. What is the annual (accounting) rate of return on this investment? A. 17%. (rounded) 8. 25%. C. 20%. D. 33%. (rounded) E. Some other rate of return. Prior period adjustments are reported A. in the footnotes of the current year's financial statements. B. on the current year's balance sheet. C. on the current year's income statement. D. on the current year's retained earnings statement. Which one of the following would be classified as an extraordinary item? A. Expropriation of property by a foreign government. B. Losses attributed to a labor strike. C. Write-down of inventories. D. Gains or losses from sales of equipment. Which of the following capital budgeting techniques explicitly takes the time value of money into consideration? A. Annual rate of return B. Cash payback C. Net present value D. Incremental analysis Information that is generally reported for each class of stock on the balance sheet is A. the market value. B. the par value_ C. shares authorized. D. shares issued. The call price of callable preferred stock A. usually sets a floor for the market price of the shares. B. tends to set a ceiling on the market price of the shares. C. is usually slightly below the par or stated value of the shares. D. does not affect the market price of the shares. On the balance sheet, Organization Costs A. appears immediately below Retained Earnings in the stockholder's equity section. B. appears as part of paid-in capital in the stockholder's equity section. C. appears in the asset section. D. appears in the liabilities section. Which one of the following would not be considered an advantage of the corporate form of organization? A. Limited liability of owners. B Separate legal existence. C Continuous life. D Government regulation. On December 31, 1996, the Dorsey Company reports the following amounts in its stockholders' equity section: Preferred stock $1,000,000 Common stock 2,000,000 Paid-in capital in excess of par value - preferred 100,000 Paid-in capital in excess of stated value - common 1,900,000 Retained earnings 1,780,000 Treasury stock - common 180,000 The preferred stock is 7%, $50 par value, and cumulative. The common stock has a stated value of $10 per share. One million shares of common stock are authorized and 40,000 shares are held in the treasury. Compute the following: ---------------------------------1. Total stockholders' equity ----------------------shares 2. Number of common shares issued. _____________________ 3. Total legal capital for common stock. _____________________ 4 Assuming that all the preferred stock was issued at the same time, what was the issue price per share of the preferred stock. _____________________ 5. Annual dividend for preferred stock. 6. Assume preferred dividends are two years in arrears (1995 and 1996). Book value per share would be computed by dividing_________________ by___________________ (use numbers not words). During 1996, the Quest Corporation had the following transactions and events: 1. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock. 2. Declared a cash dividend. 3. Made a prior period adjustment for understatement of net income 4. Declared a 10% stock dividend when the market price is $23. Indicate the effects) of each of the foregoing items on the subdivisions of stockholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect. Paid-in Capital Capital Additional Retained Item Stock Paid-in Capital Earnings 1 2 3 4 The McGee Company had a net loss of $100,000 in 1996 when the selling price per unit was $20, the variable costs per unit were $10, and the fixed costs were $500,000. Management expects per unit data and total fixed costs to be the same in 199 6 Management has set a goal of earning net income of $150,000 in 1997. units I. Compute the units sold in 1996. units 2. Compute the number of units that would have to be sold in 1997 to reach management's desired net income level. $------------------------------- 3. Assume that McGee actually sells 50,000 units in 1997. What would the unit selling price have to be in order to reach the target net income? For each item given, identify the two budgets in which it will appear. (12 points) S Sales Budget P Production Budget DM Direct Materials Budget DL Direct Labor Budget MOH Manufacturing Overhead Budget SA Selling and Administrative Expense Budget C Cash Budget BIS Budgeted Income Statement BBS Budgeted Balance Sheet I. Ending cash balance. 2. Total selling and administrative expenses 3. Total sales (in dollars) 4. Interest expense 5. Ending raw materials inventory (in dollars) 6. Ending finished goods inventory (in dollars) Selected accounts of the Justice Manufacturing Company at year-end appear below. This is their first year of operations. Raw Materials Inventory Work in Process Inventory 50,000 35,000 35.000 130,000 85,000 80,000 Finished Goods Inventory Cost of Goods Sold 130,000 100,000 100,000 Factory Labor Manufacturing Overhead 110,000 110,000 75,000 80,000 25,000 Answer the following questions based on the most probable explanation of the transactions above. Example: $50,000 Ex. Cost of raw materials purchased. $__________________ 1. Actual manufacturing overhead costs incurred. $__________________ 2. Direct materials requisitioned for production. $__________________ 3. Manufacturing overhead applied to production. $__________________ 4. Direct Labor applied to production. $____________________ 5. Indirect labor. $__________________ 6. Cost of goods completed during the year. The corporate charter of Hunter Corporation allows the issuance of a maximum of 2,000,000 shares of $1 par value common stock. During its first three years of operation, Hunter issued 1,200,000 shares at $15 per share. It later acquired 25,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions: (5 points) shares 1. How many shares are outstanding? $ ------------------------------ 2. What is the balance of the Common Stock account? ___________________ 3. What is the balance of the Treasury Stock account? Use the categories (A-I) to correctly classify the following items (1-9) on the financial statements. Categories may be used more than once, or not at all. A. Current Assets F. Long-term liabilities B. Investments G. Stockholders Equity C. Property, Plant, and Equipment H. Income Statement D. Intangibles E. Current Liabilities I.Amount will appear in either the Income Statement or the balance sheet I. Bond Interest Receivable 2. Bond Interest Payable 3. Unrealized Loss on Investments - Income 4. Loss on Sale of Debt Investment 5. Bond sinking fund 6. An investment in stock of a 20-50% owned company, at equity 7. Federal Income Taxes Payable 8. Temporary investments 9. Discount on Bonds Payable Put a "yes" in the blank if the category of investments require a year-end adjusting journal entry to revalue the investment to market value. Put a -no" if no year-end adjustment is required. ------------------------------1 Debt held to maturity. ------------------------------2 Available-for-sale portfolio. ------------------------------3 Trading portfolio. -----------------------------4 Stock ownership representing 20-50% of shares outstanding. If bonds can be converted into common stock, a. they will sell at a lower price than comparable bonds without a conversion feature. b. they will carry a higher interest rate than comparable bonds without the conversion feature. c. they will be converted only if the issuer calls them in for conversion. d. the bondholder may benefit if the market price of the common stock increases substantially. Stockholders of a company may be reluctant to finance expansion through issuing more equity because Under which of the following cases may a percentage change be computed? a. The trend of the balances is decreasing but all balances are positive. b. There is no balance in the base year. c. There is a positive balance in the base year and a negative balance in the subsequent year. d. There is a negative balance in the base year and a positive balance in the subsequent year. 2. To determine the net cash provided (used) by operating activities, it is necessary to analyze a. the current year's income statement. b. a comparative balance sheet. c. additional information. d. all of these. 3. The acquisition of land by issuing common stock is a. a noncash transaction which is not reported in the body of a statement of cash flows. b. a cash transaction and would be reported in the body of a statement of cash flows. c. a noncash transaction and would be reported in the body of a statement of cash flows. d. only reported if the statement of cash flows is prepared using the direct method. 4. In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in a. the financing section. b. the "extraordinary" section. c. a separate schedule or note to the financial statements. d. the stockholders' equity section. 5. Under which of the following cases may a percentage change be computed? a. The trend of the balances is decreasing but all balances are positive. b. There is no balance in the base year. c. There is a positive balance in the base year and a negative balance in the subsequent year. d. There is a negative balance in the base year and a positive balance in the subsequent year. 6. Evers, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $160,000 loss in the year of disposal. The loss on disposal of the segment was $80,000. If the tax rate is 30%, and income before income taxes was $1,000,000, a. the income tax expense on the income before discontinued operations is $228,000. b. the income from continuing operations is $700,000. c. net income is $760,000. d. the losses from discontinued operations are reported net of income taxes at $120,000. 7. A weakness of the current ratio is a. the difficulty of the calculation. b. that it doesn't take into account the composition of the current assets. c. that it is rarely used by sophisticated analysts. d. that it can be expressed as a percentage, as a rate, or as a proportion. 8. For the work of factory employees to be considered as direct labor, the work must be conveniently and a. materially associated with raw materials conversion. b. periodically associated with raw materials conversion. c. physically associated with raw materials conversion. d. promptly associated with raw materials conversion. 9. Tyler Manufacturing Company reported the following year-end information: beginning work in process inventory, $270,000; cost of goods manufactured, $774,000; beginning finished goods inventory, $378,000; ending work in process inventory, $330,000; and ending finished goods inventory, $396,000. Tyler Manufacturing Company's cost of goods sold for the year is a. $756,000. b. $792,000. c. $714,000. d. $378,000. 10. The labor costs that have been identified as indirect labor should be charged to a. manufacturing overhead. b. direct labor. c. the individual jobs worked on. d. salary expense. 11. An important assumption in using ABC is that a. production must take place on a continuous basis. b. all costs in an activity should respond proportionately to changes in the activity level of the cost driver. c. production must take place on a just-in-time basis. d. all costs are pushed through each process when customer orders are received. 12. Equivalent units are calculated by a. multiplying the percentage of work done by the equivalent units of output. b. dividing physical units by the percentage of work done. c. multiplying the percentage of work done by the physical units. d. dividing equivalent units by the percentage of work done. 13. Which is the true statement? a. In a CVP income statement, costs and expenses are classified only by function. b. The CVP income statement is prepared for both internal and external use. c. The CVP income statement shows contribution margin instead of gross profit. d. In a traditional income statement, costs and expenses are classified as either variable or fixed. 14. Which of the following statements about budget acceptance in an organization is true? a. The most widely accepted budget by the organization is the one prepared by top management. b. The most widely accepted budget by the organization is the one prepared by the department heads. c. Budgets are hardly ever accepted by anyone except top management. d. Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. 15. Which is true of budgets? a. They are voted on and approved by stockholders. b. They are used in the planning, but not in the control, process. c. There is a standard form and structure for budgets. d. They are used in performance evaluation. 16. If an investment center has generated a controllable margin of $90,000 and sales of $450,000, what is the return on investment for the investment center if average operating assets were $750,000 during the period? a. 12% b. 20% c. 48% d. 60% 17. The best measure of the performance of the manager of a profit center is the a. rate of return on investment. b. success in meeting budgeted goals for controllable costs. c. amount of controllable margin generated by the profit center. d. amount of contribution margin generated by the profit center. 18. A measure frequently used to evaluate the performance of the manager of an investment center is a. the amount of profit generated. b. the rate of return on funds invested in the center. c. the percentage increase in profit over the previous year. d. departmental gross profit. 19. The linens department of a large department store is a. not a responsibility center. b. a profit center. c. a cost center. d. an investment center. 20. A profit center is a. a responsibility center that always reports a profit. b. a responsibility center that incurs costs and generates revenues. c. evaluated by the rate of return earned on the investment allocated to the center. d. referred to as a loss center when operations do not meet the company's objectives. 21. The costing of inventories at standard cost for external financial statement reporting purposes is a. not permitted. b. preferable to reporting at actual costs. c. in accordance with generally accepted accounting principles if significant differences exist between actual and standard costs. d. in accordance with generally accepted accounting principles if significant differences do not exist between actual and standard costs. 22. A company uses 16,000 pounds of materials for which it paid $3.60 a pound. What is the materials price variance? a. $.50. b. $1.00. c. $2.50. d. Cannot be determined from the data provided. CLICK HERE TO GET THE ANSWER !!!! For accounting purposes, the use of the cost method or the equity method used to account for long-term investments in common stock is determined by A. the amount paid for the stock by the investor. B. the extent of an investor's influence on the operating and financial affairs of the investee. C. whether the stock has paid dividends in past years. D. whether the market price of the stock changed during the year. The balance in the Unrealized Loss-Available for Sale account will A. appear on the balance sheet as a contra asset. B. appear on the income statement under Other Expenses and Losses. C. appear as a deduction in the stock/bIders' equity section. D. not be shown on the financial statements until the securities are sold. A company projects an increase in net income of $45,000 each year (or the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $100,000. What is the annual (accounting) rate of return on this investment? A. 17%. (rounded) 8. 25%. C. 20%. D. 33%. (rounded) E. Some other rate of return. Prior period adjustments are reported A. in the footnotes of the current year's financial statements. B. on the current year's balance sheet. C. on the current year's income statement. D. on the current year's retained earnings statement. Which one of the following would be classified as an extraordinary item? A. Expropriation of property by a foreign government. B. Losses attributed to a labor strike. C. Write-down of inventories. D. Gains or losses from sales of equipment. Which of the following capital budgeting techniques explicitly takes the time value of money into consideration? A. Annual rate of return B. Cash payback C. Net present value D. Incremental analysis Information that is generally reported for each class of stock on the balance sheet is A. the market value. B. the par value_ C. shares authorized. D. shares issued. The call price of callable preferred stock A. usually sets a floor for the market price of the shares. B. tends to set a ceiling on the market price of the shares. C. is usually slightly below the par or stated value of the shares. D. does not affect the market price of the shares. On the balance sheet, Organization Costs A. appears immediately below Retained Earnings in the stockholder's equity section. B. appears as part of paid-in capital in the stockholder's equity section. C. appears in the asset section. D. appears in the liabilities section. Which one of the following would not be considered an advantage of the corporate form of organization? A. Limited liability of owners. B Separate legal existence. C Continuous life. D Government regulation. Text Box: 6On December 31, 1996, the Dorsey Company reports the following amounts in its stockholders' equity section: Preferred stock $1,000,000 Common stock 2,000,000 Paid-in capital in excess of par value - preferred 100,000 Paid-in capital in excess of stated value - common 1,900,000 Retained earnings 1,780,000 Treasury stock - common 180,000 The preferred stock is 7%, $50 par value, and cumulative. The common stock has a stated value of $10 per share. One million shares of common stock are authorized and 40,000 shares are held in the treasury. Compute the following: ---------------------------------1. Total stockholders' equity ----------------------shares 2. Number of common shares issued. _____________________ 3. Total legal capital for common stock. _____________________ 4 Assuming that all the preferred stock was issued at the same time, what was the issue price per share of the preferred stock. _____________________ 5. Annual dividend for preferred stock. 6. Assume preferred dividends are two years in arrears (1995 and 1996). Book value per share would be computed by dividing_________________ by___________________ (use numbers not words). During 1996, the Quest Corporation had the following transactions and events: 1. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock. 2. Declared a cash dividend. 3. Made a prior period adjustment for understatement of net income 4. Declared a 10% stock dividend when the market price is $23. Indicate the effects) of each of the foregoing items on the subdivisions of stockholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect. Paid-in Capital Capital Additional Retained Item Stock Paid-in Capital Earnings 1 2 3 4 Text Box: 7The McGee Company had a net loss of $100,000 in 1996 when the selling price per unit was $20, the variable costs per unit were $10, and the fixed costs were $500,000. Management expects per unit data and total fixed costs to be the same in 199 6 Management has set a goal of earning net income of $150,000 in 1997. units I. Compute the units sold in 1996. units 2. Compute the number of units that would have to be sold in 1997 to reach management's desired net income level. $------------------------------- 3. Assume that McGee actually sells 50,000 units in 1997. What would the unit selling price have to be in order to reach the target net income? For each item given, identify the two budgets in which it will appear. (12 points) S Sales Budget P Production Budget DM Direct Materials Budget DL Direct Labor Budget MOH Manufacturing Overhead Budget SA Selling and Administrative Expense Budget C Cash Budget BIS Budgeted Income Statement BBS Budgeted Balance Sheet I. Ending cash balance. 2. Total selling and administrative expenses 3. Total sales (in dollars) 4. Interest expense 5. Ending raw materials inventory (in dollars) 6. Ending finished goods inventory (in dollars) Text Box: 8Selected accounts of the Justice Manufacturing Company at year-end appear below. This is their first year of operations. Raw Materials Inventory Work in Process Inventory 50,000 35,000 35.000 130,000 85,000 80,000 Finished Goods Inventory Cost of Goods Sold 130,000 100,000 100,000 Factory Labor Manufacturing Overhead 110,000 110,000 75,000 80,000 25,000 Answer the following questions based on the most probable explanation of the transactions above. Example: $50,000 Ex. Cost of raw materials purchased. $__________________ 1. Actual manufacturing overhead costs incurred. $__________________ 2. Direct materials requisitioned for production. $__________________ 3. Manufacturing overhead applied to production. $__________________ 4. Direct Labor applied to production. $____________________ 5. Indirect labor. $__________________ 6. Cost of goods completed during the year. The corporate charter of Hunter Corporation allows the issuance of a maximum of 2,000,000 shares of $1 par value common stock. During its first three years of operation, Hunter issued 1,200,000 shares at $15 per share. It later acquired 25,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions: (5 points) shares 1. How many shares are outstanding? $ ------------------------------ 2. What is the balance of the Common Stock account? ___________________ 3. What is the balance of the Treasury Stock account? Use the categories (A-I) to correctly classify the following items (1-9) on the financial statements. Categories may be used more than once, or not at all. A. Current Assets F. Long-term liabilities B. Investments G. Stockholders Equity C. Property, Plant, and Equipment H. Income Statement D. Intangibles E. Current Liabilities I.Amount will appear in either the Income Statement or the balance sheet I. Bond Interest Receivable 2. Bond Interest Payable 3. Unrealized Loss on Investments - Income 4. Loss on Sale of Debt Investment 5. Bond sinking fund 6. An investment in stock of a 20-50% owned company, at equity 7. Federal Income Taxes Payable 8. Temporary investments 9. Discount on Bonds Payable Put a "yes" in the blank if the category of investments require a year-end adjusting journal entry to revalue the investment to market value. Put a -no" if no year-end adjustment is required. ------------------------------1 Debt held to maturity. ------------------------------2 Available-for-sale portfolio. ------------------------------3 Trading portfolio. -----------------------------4 Stock ownership representing 20-50% of shares outstanding. If bonds can be converted into common stock, a. they will sell at a lower price than comparable bonds without a conversion feature. b. they will carry a higher interest rate than comparable bonds without the conversion feature. c. they will be converted only if the issuer calls them in for conversion. d. the bondholder may benefit if the market price of the common stock increases substantially. Stockholders of a company may be reluctant to finance expansion through issuing more equity because Under which of the following cases may a percentage change be computed? a. The trend of the balances is decreasing but all balances are positive. b. There is no balance in the base year. c. There is a positive balance in the base year and a negative balance in the subsequent year. d. There is a negative balance in the base year and a positive balance in the subsequent year. 2. To determine the net cash provided (used) by operating activities, it is necessary to analyze a. the current year's income statement. b. a comparative balance sheet. c. additional information. d. all of these. 3. The acquisition of land by issuing common stock is a. a noncash transaction which is not reported in the body of a statement of cash flows. b. a cash transaction and would be reported in the body of a statement of cash flows. c. a noncash transaction and would be reported in the body of a statement of cash flows. d. only reported if the statement of cash flows is prepared using the direct method. 4. In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in a. the financing section. b. the "extraordinary" section. c. a separate schedule or note to the financial statements. d. the stockholders' equity section. 5. Under which of the following cases may a percentage change be computed? a. The trend of the balances is decreasing but all balances are positive. b. There is no balance in the base year. c. There is a positive balance in the base year and a negative balance in the subsequent year. d. There is a negative balance in the base year and a positive balance in the subsequent year. 6. Evers, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $160,000 loss in the year of disposal. The loss on disposal of the segment was $80,000. If the tax rate is 30%, and income before income taxes was $1,000,000, a. the income tax expense on the income before discontinued operations is $228,000. b. the income from continuing operations is $700,000. c. net income is $760,000. d. the losses from discontinued operations are reported net of income taxes at $120,000. 7. A weakness of the current ratio is a. the difficulty of the calculation. b. that it doesn't take into account the composition of the current assets. c. that it is rarely used by sophisticated analysts. d. that it can be expressed as a percentage, as a rate, or as a proportion. 8. For the work of factory employees to be considered as direct labor, the work must be conveniently and a. materially associated with raw materials conversion. b. periodically associated with raw materials conversion. c. physically associated with raw materials conversion. d. promptly associated with raw materials conversion. 9. Tyler Manufacturing Company reported the following year-end information: beginning work in process inventory, $270,000; cost of goods manufactured, $774,000; beginning finished goods inventory, $378,000; ending work in process inventory, $330,000; and ending finished goods inventory, $396,000. Tyler Manufacturing Company's cost of goods sold for the year is a. $756,000. b. $792,000. c. $714,000. d. $378,000. 10. The labor costs that have been identified as indirect labor should be charged to a. manufacturing overhead. b. direct labor. c. the individual jobs worked on. d. salary expense. 11. An important assumption in using ABC is that a. production must take place on a continuous basis. b. all costs in an activity should respond proportionately to changes in the activity level of the cost driver. c. production must take place on a just-in-time basis. d. all costs are pushed through each process when customer orders are received. 12. Equivalent units are calculated by a. multiplying the percentage of work done by the equivalent units of output. b. dividing physical units by the percentage of work done. c. multiplying the percentage of work done by the physical units. d. dividing equivalent units by the percentage of work done. 13. Which is the true statement? a. In a CVP income statement, costs and expenses are classified only by function. b. The CVP income statement is prepared for both internal and external use. c. The CVP income statement shows contribution margin instead of gross profit. d. In a traditional income statement, costs and expenses are classified as either variable or fixed. 14. Which of the following statements about budget acceptance in an organization is true? a. The most widely accepted budget by the organization is the one prepared by top management. b. The most widely accepted budget by the organization is the one prepared by the department heads. c. Budgets are hardly ever accepted by anyone except top management. d. Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. 15. Which is true of budgets? a. They are voted on and approved by stockholders. b. They are used in the planning, but not in the control, process. c. There is a standard form and structure for budgets. d. They are used in performance evaluation. 16. If an investment center has generated a controllable margin of $90,000 and sales of $450,000, what is the return on investment for the investment center if average operating assets were $750,000 during the period? a. 12% b. 20% c. 48% d. 60% 17. The best measure of the performance of the manager of a profit center is the a. rate of return on investment. b. success in meeting budgeted goals for controllable costs. c. amount of controllable margin generated by the profit center. d. amount of contribution margin generated by the profit center. 18. A measure frequently used to evaluate the performance of the manager of an investment center is a. the amount of profit generated. b. the rate of return on funds invested in the center. c. the percentage increase in profit over the previous year. d. departmental gross profit. 19. The linens department of a large department store is a. not a responsibility center. b. a profit center. c. a cost center. d. an investment center. 20. A profit center is a. a responsibility center that always reports a profit. b. a responsibility center that incurs costs and generates revenues. c. evaluated by the rate of return earned on the investment allocated to the center. d. referred to as a loss center when operations do not meet the company's objectives. 21. The costing of inventories at standard cost for external financial statement reporting purposes is a. not permitted. b. preferable to reporting at actual costs. c. in accordance with generally accepted accounting principles if significant differences exist between actual and standard costs. d. in accordance with generally accepted accounting principles if significant differences do not exist between actual and standard costs. 22. A company uses 16,000 pounds of materials for which it paid $3.60 a pound. What is the materials price variance? a. $.50. b. $1.00. c. $2.50. d. Cannot be determined from the data provided. CLICK HERE TO GET THE ANSWER !!!!

For accounting purposes, the use of the cost method or the equity method used to account for long-term investments in common stock is determined by

A.        the amount paid for the stock by the investor.

B.         the extent of an investor's influence on the operating and financial affairs of the investee.

C.         whether the stock has paid dividends in past years.

D.        whether the market price of the stock changed during the year.

 The balance in the Unrealized Loss-Available for Sale account will

A.        appear on the balance sheet as a contra asset.

B.         appear on the income statement under Other Expenses and Losses.

C.         appear as a deduction in the stock^/bIders' equity section.

D.        not be shown on the financial statements until the securities are sold.