1. At December 31, 2015 Hancock Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on July 1, 2015. Net income for the year ended December 31, 2015 was $1,360,000. What should be Hancock's 2015 earnings per common share, rounded to the nearest penny?
a. $2.69
b. $3.40
c. $3.20
d. $3.02
2. Bob Company, with an applicable income tax rate of 30%, reported net income of $357,000. Included in income for the period was a loss from discontinued operations of $30,000 before deducting the related tax effect. The company's income from continuing operations before income taxes was:
a. $540,000
b. $480,000
c. $550,000
d. $385,000
3. An unrealized holding gain on a company's trading securities should be reflected in the current financial statements as:
a. An item shown as a direct increase to retained earnings.
b. An income statement gain resulting from holding securities.
c. A note or parenthetical disclosure only.
d. Other Comprehensive income and included in the equity section of the balance sheet.