ACC 304 All Assignments ACC 304 All Assignments | Page 5

14) Gannon Company acquired 10,000 shares of its own common stock
at $20 per share on February 5, 2014, and sold 5,000 of these shares at
$27 per share on August 9, 2015. The fair value of Gannon's common
stock was $24 per share at December 31, 2014, and $25 per share at
December 31, 2015. The cost method is used to record treasury stock
transactions. What account(s) should Gannon credit in 2015 to record
the sale of 5,000 shares?
15) When computing diluted earnings per share, convertible bonds are
16) Jeff Corporation purchased a limited-life intangible asset for
$225,000 on May 1, 2013. It has a useful life of 10 years. What total
amount of amortization expense should have been recorded on the
intangible asset by December 31, 2015?
17) A corporation called an outstanding bond obligation four years
before maturity. At that time there was an unamortized discount of
$750,000. To extinguish this debt, the company had to pay a call
premium of $250,000. Ignoring income tax considerations, how should
these amounts be treated for accounting purposes?