1. Benton Company issues $10,000,000 of 10-year, 8% bonds on April 1, 2017 at 99 plus accrued interest. The bonds are dated January 1, 2017, and pay interest on June 30 and December 31. What is the total cash received on the issue date?

Select one: a. $9,700,000 b. $10,200,000 c. $9,900,000 d. $9,766,667 e. $10,100,000

2. Keene Co. has 2,000,000 shares of common stock outstanding on December 31, 2018. An additional 100,000 shares are issued on April 1, 2019, and 240,000 more on October 31. On October 31, 2019, Keene issued $3,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. Assume the bonds are dilutive. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2019 is

Select one:

a. 2,155,000 and 2,185,000

b. 2,135,000 and 2,155,000

c. 2,115,000 and 2,135,000

d. 2,135,000 and 2,165,000

e. 2,115,000 and 2,235,000