1......Warrants exercisable at $25 each to obtain 30,000 shares of common stock were outstanding during a period when the average market price of the common stock was $20. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by:

Select one:

a. 30,000 b. 24,000 c. 6,000 d. 7,500 e. 0

2......When a corporation purchases its own stock and uses the cost method, a debit entry is made to which account(s)?

Select one:

a. Both Common Stock and Paid-in Capital from Treasury Stock

b. Common Stock, but not Paid-in Capital from Treasury Stock

c. Paid-in Capital from Treasury Stock, but not Common Stock

d. Neither Paid-in Capital from Treasury Stock nor Common Stock

3.........

Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2024. The preferred stock is convertible into 20,000 shares of common stock. During 2024, Jostens paid dividends of $1.20 per share on its common stock and $4.00 per share on its preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for the year ended December 31, 2024 was $800,000. Assume the income tax rate was 30%. Diluted earnings per share for 2024 (rounded to the nearest penny) are:

Select one:

a. $3.60

b. $3.35

c. $2.94

d. $3.28

e. $3.22