12

Special Income and Investment

Reporting Issues

Learning Goals

Prepare an income statement reporting the following un-

usual items: fixed asset impairments, restructuring

charges, discontinued operations, extraordinary items,

and cumulative changes in accounting principles.

Prepare an income statement reporting earnings per

share data.

Describe the accounting for investments in stocks.

Record entries for the purchase, interest, discount

and premium amortization, and sale of bond

investments.

Compute and interpret the price-earnings and price-book

ratios.

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