6．A firm has reported net income of $136 million, but the notes to financial statements includes a statement that the results “include a $27 million charge for non-insured earthquake damage” and a “gain on the sale of certain assets during restructuring of $16 million.” If we assume that both of these items are given on a pre-tax basis and the effective tax rate is 36 percent, what would be the “normal operating income?” A) $94.08 million. B) $139.96 million. C) $143.04 million. D) $147.00 million.
7．North American Pipelines (NAP) reports the following information in its 2006 financial statements and disclosures (in $millions): Net Income | 323 | Minimum pension liabilities | 45 | Unrealized losses on available-for-sale securities | 23 | Unrealized losses on held-to-maturity securities | 17 | Cumulative foreign currency translation adjustment, net | 18 | Deferred gains from foreign currency hedges | 5 | Present value of operating leases | 215 |
What is NAP’s comprehensive income for 2006? A) $261 million. B) $476 million. C) $63 million. D) $278 million.
8．A firm has entered into a long-term operating lease on its manufacturing equipment that calls for payments of $100,000 per month over five years. At the end of the first full year, the income statement includes $1.2 million as lease expense. An analyst wishes to adjust the income statement to reflect this as a capital lease. Assuming no residual value in the equipment after the lease term, and a 10 percent interest rate, what income statements entries would be made for the lease during the first year (assume that the $1.2 million in expense has already been removed, and assets are depreciated using a straight-line method)? A) Interest expense $436,279 and depreciation $736,721. B) Lease expense $600,000 and depreciation $600,000. C) Interest expense $470,654 and depreciation $941,307. D) Interest expense $120,000 and amortization $1.08 million.
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发表于 2008-5-20 18:39
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