-At January 1, 2020, Dango Ltd had 450,000 common shares outstanding (no preferred shares issued). During 2020, Dango issued 60,000 shares on May 1, purchased 36,000 treasury shares on September 1, and issued 42,000 more shares on November 1. The weighted average of common shares outstanding for 2020 is

497,000.

485,000.

509,000.

469,000.

-When shares are reacquired at a cost less than the average per share value, the difference is credited to

Retained Earnings.

the appropriate share capital account.

Contributed Surplus.

Gain on Reacquisition of Shares.

-Cash dividends are paid on the basis of the number of shares

authorized.

outstanding.

outstanding less the number of treasury shares.

issued.

-Derivatives should be valued at

historical cost.

fair value.

discounted cost.

fair value or historical cost

-The intrinsic value of an option is the

option premium value.

difference between the price of the underlying security and the strike price.

minimum value of the option.

value due to expectations that the price of the underlying security will rise above the strike price.