1.On January 1, 2007, ABC Company had 300,000 shares of common stock issued and outstanding. ABC issued a 10% stock dividend on July 1 . On October 1, 12,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2007? A) 303,000. B) 342,000. C) 312,000. D) 327,000. 2.Gill Company had 100,000 shares of common stock issued and outstanding on 1-1-06. On July 1, the company sold 20,000 additional shares. Gill's net income for 2006 was $650,000. During 2006, it paid $89,000 in cash dividends on its nonconvertible preferred stock. What is the 2006 basic earnings per share? A) $5.91. B) $5.61. C) $5.10. D None of the above. 3.Bellow Company had 40,000 shares of common stock outstanding on January 1, 2006. On April 1, the company issued 20,000 shares of common stock. The company had outstanding stock options for 10,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $11 while the average price for the year was $12. What number of shares of stock should be used in computing diluted earnings per share? A) 65,000. B) 56,667 C) 55,000. D) 61,667. 4.Yellow Cab Company had 50,000 shares of common stock outstanding on January 1,2006. On April 1, 2006, the company issued 20,000 shares of common stock. The company had outstanding stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $11 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2006. What is the basic earnings per share? A) $4.10. B) $3.86. C) $3.60 D) $4.15