1. Keene Co. has 2,000,000 shares of common stock outstanding on December 31, 2026. An additional 100,000 shares are issued on April 1, 2027, and 240,000 more on September 1. On September 1, 2027, Keene issued $3,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 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, 2027 is

Select one:

a.

2,155,000 and 2,335,000.

b.

2,155,000 and 2,215,000.

c.

2,147,000 and 2,327,000.

d.

2,540,000 and 2,335,000.

e.

2,147,000 and 2,275,000.

2.

Cox Corporation was organized on January 1, 2021, at which date it issued 100,000 shares of $10 par common stock at $15 per share. During the period January 1, 2021, through December 31, 2023, Cox reported net income of $464,000 and paid cash dividends of $220,000. On January 10, 2023, Cox purchased 6,000 shares of its common stock at $12 per share. On December 31, 2023, Cox sold 4,000 treasury shares at $8 per share. What is Cox's total stockholders' equity at December 31, 2023?

Select one:

a.

$1,720,000

b.

$1,704,000

c.

$1,688,000

d.

$1,760,000

e.

$1,680,000

3.

Which of the following are temporary differences that are normally classified as expenses recognized for tax purposes before they are recognized in financial income?

Select one:

a.

Prepaid Expenses

b.

Fines and expenses resulting from a violation of law

c.

Advance rental receipts

d.

Product warranty liabilities

e.

Accrued revenues

4.

In its first year of operations, the Aaron Company's 12/31/26 adjusting tax journal entry includes an entry to Income Tax Expense of $110, a Deferred Tax Liability of $10, and Income Tax Payable of $100. What will be included in the presentation of Income Tax Expense on the 2026 Income Statement?

Select one:

a.

A $10 deferred credit.

b.

A current portion of $100

c.

A current portion of $10

d.

A current portion of $110