12) Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 10,000 shares of common stock at S7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8). What is total shareholders' equity at the end of 2018? A) $270,000 B) $300,000 C) $250,000 D) $200,000. - 13) On January 1, 2018, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2020, by the grantees still in the employ of the company. No options were terminated during 2018, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2018? A) $307,200 B) $320,000. C) $384,000. D) $400,000 14) On December 31, 2017, the Frisbee Company had 250,000 shares of common stock issued and outstanding. On March 31, 2018, the company sold 50,000 additional shares for cash. Frisbee's net income for the year ended December 31, 2018, was $700,000. During 2018, Frisbee declared and paid $80,000 in cash dividends on its nonconvertible preferred stock. What is the 2018 basic earnings per share (rounded)? A) $2.16. B) $3.50 C) $3.10. D) $2.80