$1$a$.)$On January $21$ of Year $1,$ Corinne Company REISSUED $400$ shares of treasury stock for $$10$ per share. The original cost of this treasury stock had been $$15$ per share. Corinne uses the cost method of accounting for treasury stock. Corinne Company has never before purchased nor reissued shares of treasury stock. The par value of the stock is $$1$ per share. Which ONE of the following should be included in the journal entry to record the REISSUANCE?$*$ CREDIT to Retained Earnings for $$2,000*$ DEBIT to Retained Earnings for $$2,000*$ CREDIT to Treasury Stock for $$4001$b$.)$ Hinckley Company initially issued $500,000$ shares of $$1$ par common stock for $$20$ per share. On March $23$ of this year, Hinckley repurchased $10,000$ shares for a total of $$300,000.$ Hinckley uses the cost method of accounting for treasury stock. Hinckley has never before purchased nor reissued shares of treasury stock. On May $16,$ Hinckley REISSUED $4,000$ of these previously$-$repurchased shares for a total of $$144,000.$ Which ONE of the following should be included in the journal entry necessary to record the REISSUANCE of these $4,000$ shares?$*$ CREDIT Paid$-$in Capital from Treasury Stock for $$24,000*$ CREDIT Retained Earnings for $$24,000*$ CREDIT Gain on Common Stock Reissuance for $$24,000*$ CREDIT Paid$-$in Capital in Excess of Par for $$120,0001$c$.)$Escalante Company issued $20,000$ shares of $7\%,$ $$50$ par preferred stock. Associated with each share of stock was a detachable common stock warrant. Each warrant entitles the holder to purchase one share of the companys $$1$ par common stock for $$20$ per share. Each unit $($one share of preferred stock and one warrant$)$ was issued for $$55.$ It is estimated that each warrant could have been issued for $$3$ if issued alone, and the preferred stock could have been issued for $$52$ if issued alone. Which ONE of the following should be included in the journal entry necessary to record the issuance of the preferred stock$-$warrant units?$*$ CREDIT Paid$-$In Capital in Excess of Par, Preferred for $$100,000*$ CREDIT Paid$-$In Capital in Excess of Par, Preferred for $$40,000*$ DEBIT Common Stock Warrants for $$60,000*$ DEBIT Common Stock Warrants for $$100,0001$D$,)$On January $1,20$X$1,$ Clarkston Company initiated an employee stock$-$based compensation plan that grants employees options to purchase $80,000$ shares of $$0\mathrm{.}01$ par value common stock at $$4\mathrm{.}00$ per share. The employees rights to the stock options vest over a two$-$year service period, from January $1,20$X$1$ to January $1,20$X$3.$ Clarkston estimates that these OPTIONS have a fair value of $$1\mathrm{.}00$ per share on the date of grant of January $1,20$X$1.$ The stock options are exercisable any time between January $1,20$X$3$ and December $31,20$X$3.$Which ONE of the following should be included in the journal entry necessary on Clarkstons books on December $31,20$X$1,$ the end of the FIRST year of the stock$-$based compensation plan?$*$ CREDIT Stock Option Liability for $$40,000*$ CREDIT Stock Option Liability for $$80,000*$ DEBIT Compensation Expense for $$80,000*$ DEBIT Compensation Expense for $$40,000$