Before Adjusting Its Current Investments in Equity Securities, Caldwell Company

question 42

Multiple Choice

Before adjusting its current investments in equity securities, Caldwell Company has total current assets and current liabilities of $45,000 and $15,000, respectively. During the current year, Caldwell has net income of $243,750 with 75,000 shares of common stock outstanding. This amount excludes the effects of yearend adjustments related to the investments. Included in current assets are equity securities recorded at their original cost of $13,000. However, the current market value of those securities is $4,000 at yearend. If Caldwell properly accounts for equity securities, what is Caldwell's earnings per share amount before and after the investment adjustment, respectively?

• A)$3.25 and $3.00
• B)$3.25 and $3.13
• C)$3.25 and $3.37
• D)$3.25 and $2.77

---

Definitions:

Influence Study's Results

Factors or variables that can affect the outcome or findings of a research study.

Randomly Assign Participants

A method used in experiments where individuals are assigned to groups in a way that each participant has an equal chance of being placed in any group, reducing bias and variability.

Research Creativity

The novel and useful contribution to a field of study through the exploration and investigation of unknown territories or ideas.

Interpret Results

The process of making sense of data or outcomes from experiments, studies, or analyses, often to determine their significance or implications.