6. During 2017, Miami Inc. had sales revenue $1,328,000, grossprofit $728,000, operating expenses $398,000, cash dividends$90,000, other expenses and losses $40,000. Its corporate tax rateis 30%. What was Miami's income tax expense for the year?
Select one:
a. $ 60,000
b. $ 87,000
c. $ 99,000
d. $267,000
e. $218,400
8.On January 1, 2018, equity account balances are asfollows:
PreferredStock $ 500,000
CommonStock 1,000,000
Paid-In Capital in Excess of Par -Preferred 200,000
Paid-In Capital in Excess of Par -Common 500,000
Paid-In Capital From TreasuryStock 20,000
RetainedEarnings 1,500,000
Treasury Stock (25,000 shares purchased3/15/17) 762,500
On January 15, 2018, 10,000 shares of treasury stock are sold at$15 per share. The entry to record this transaction includes a
Select one:
a. debit to Paid-In Capital From Treasury Stock of $135,000
b. debit to Paid-In Capital From Treasury Stock of $155,000
c. debit to Retained Earnings of $155,000
d. debit to Paid-In Capital From Treasury Stock of $150,000
e. debit to Retained Earnings of $135,000
9.Relative to a given bond issue, using either the straight-linemethod or the effective-interest method of amortization will resultin
Select one:
a. the same amount of interest expense being recognized eachyear.
b. the same amount of interest expense being recognized over thelife of the bonds.
c. the same carrying value each year during the life of thebonds.
d. more interest expense being recognized than if premium ordiscounts were not amortized.
10.Blanco, Inc. has a net income of $300,000 for 2017, and thereare 200,000 weighted-average shares of common stock outstanding.Dividends declared and paid during the year amounted to $40,000 onpreferred stock and $60,000 on common stock. Earnings per share for2017 is
Select one:
a. $1.20.
b. $1.50.
c. $1.30.
d. $1.00.
e. $2.00.
