Dilutive stock options would generally be used in the calculation of Basic Diluted eamings per share earnings per share O O O O No No No Yes Yes Yes 22 Yes No Robbins Inc. leased a machine from Ready Leasing Co. The lease qualifies as a finance lease and requires 10 annual payments of $10,000 beginning immediately. The lease specifies an interest rate of 12% and a purchase option of $10,000 at the end of the tenth year, even though the machine's estimated value on that date is $20,000. Robbins' incremental borrowing rate is 14%. The present value of an annuity due of 1 at: 12% for 10 years is 6.328 and 14% for 10 years is 5.946. The present value of 1 at 12% for 10 years is 0.322 and 14% for 10 years is 0.270. What amount should Robbins record as lease liability at the beginning of the lease term? O O O O Kanna Co. follows U.S. GAAP and has one pension plan for its employees. The plan's funded status is positive, but will most likely decrease if in the current period actuaries determine that the: Retirement Age of Employees Interest Cost Discount Rate Increases Increases Increases Decreases Decreases Increases Decreases Decreases 47"> Under U.S. GAAP, net periodic pension cost in the current period will increase due to an Unrecognized gain above the 10% corridor. O Increase in the PBO from services rendered. O Amortization of an existing net transition asset Current period expected return of 5% versus actual return of 3% The following information pertains to Seda Co.'s pension plan: Actuarial estimate of projected benefit obligation at beginning of year $72,000 Assumed discount rate Service costs Pension benefits paid during the year 10% 18,000 15,000 If no change in actuarial estimates occurred during the year, Seda's projected benefit obligation at December 31 was: 42 43 44 45 46 47 48 49 50 149" On January 1 of the current year, Tree Co. enters into a five-year lease agreement for production equipment. The lease requires Tree to pay $12,500 per year in lease payments. At the end of the five-year lease term, Tree can purchase the equipment for $30,000. The fair value of the equipment is $75,000. The estimated useful life of the equipment is 10 years. The present value of the lease payments is $50,000. The present value of the purchase option is $20,000. Tree's controller believes the purchase option price is sufficiently below the expected fair value of the equipment at the date the option becomes exercisable to reasonably assure its exercise. Tree would normally depreciate equipment of this type using the straight-line method. What amount is the carrying value of the asset related to this lease at December 31, of the current year? When computing diluted earnings per share, convertible securities are: O Ignored. O Recognized only if they are dilutive. O Recognized only if they are anti-dilutive. O Recognized whether they are dilutive or anti-dilutive