1. Which one of the following would most likely cause basic earnings per share to increase? A. Postponing the declaration of dividends. B. Issuing stock options when the option price is greater than the market price. C. Purchasing treasury stock. D. Selling shares of stock at a price greater than the par value.

2. Vorst Corporations schedule of depreciable assets at December 31, Year 3, is shown in the next column. Vorst takes a full years depreciation expense in the year of an assets acquisition and no depreciation expense in the year of an assets disposition. The estimated useful life of each depreciable asset is 5 years.

		Accumulated	Acquisition	Salvage
Asset	Cost	Depreciation	Date	Value
A	$100,000	$ 64,000	Year 2	$20,000
B	55,000	36,000	Year 1	10,000
C	70,000	33,600	Year 1	14,000
	$225,000	$133,600		$44,000

Vorst depreciates asset A on the double-declining-balance method. How much depreciation expense should Vorst record in Year 4 for asset A?
A.	$25,600
B.	$14,400
C.	$32,000
D.	$6,400