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NEW QUESTION: 1
A. Type I
B. Type IIa
C. Type III
D. Type IIb
Answer: A
NEW QUESTION: 2
Bubba owns a perpetual warrant to buy one share of Internet Corporation common stock at $30. Internet
Corporation stock is trading at 41.50 and is ex-dividend today at $0.75. What is the market value of
Bubba's warrant?
A. 5.62
B. 5.75
C. 5.38
D. cannot be determined from this information
Answer: D
Explanation:
cannot be determined. Bubba can put away the calculator. The warrant is "perpetual" so the
value is not determinable from today's price of the common stock.
NEW QUESTION: 3
On March 15, 1992, Krol Co. paid property taxes of $90,000 on its office building for the calendar year
1 992. On April 1, 1992, Krol paid $150,000 for unanticipated repairs to its office equipment. The repairs
will benefit operations for the remainder of 1992. What is the total amount of these expenses that Krol
should include in its quarterly income statement for the three months ended June 30, 1992?
A. $172,500
B. $72,500
C. $97,500
D. $37,500
Answer: B
Explanation:
Rule: Actual and estimated expenditures benefiting all interim periods equally should be expensed ratably
throughout the year.
Choice "c" is correct. $72,500 total expense for the three months ended June 30, 1992.
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