Question 1. Why must Unrealized Gain on Temporary investments in marketable securities at cost be shown on the Balance Sheet as a current asset? Usually gains are shown on the Income Statement?
Question 2. On a loss net of taxes how can the loss be less than the amount of money you lost? Do you pay taxes on a loss?
Question 3. A corporation reports earnings per share of $1.38 for the most recent year and $1.10 for the preceding year. The $1.38 includes a $0.40-per-share gain from insurance proceeds related to a fully depreciated asset that was destroyed by fire. Should the composition of the $1.38 be disclosed in the financial reports? On the basis of the limited information presented, would you conclude that operations had improved or declined?
Question 4. Why would a company consider issuing preferred stock? If they need to raise capital, wouldn't it be better just to borrow the money from a bank?
Question 5. When you sell stock above Par value, why can you not have a gain instead of having to put it in Paid in Capital above Par value?