During 2019. Gum Co. introduced a new product carrying a two-year assurance-type warranty against defects. Gum Co. uses the expense warranty approach. The estimated warranty costs related to dollar sales are 6%. Sales and actual warranty expenditures for the years ended December 31, 2019 and 2020 are as follows: 2019 2020 Sales $150,000 250 000 $400.000 Actual Warranty Fxpenditures $2,250 7500 $9.750 What amount should Gum report as warranty expense on its 2019 income statement? Select one: O a. $7,500 O b. $1,500 O c $9,000 O d. $14,250 O e. $24,000 Clear my choice Landon Corporation issued 2,000 shares of $5 par value common stock and 400 shares of $10 par value preferred stock for a lump sum of $72,000 cash. What is the total credit to Additional Paid-in-Capital accounts when the market value of the common shares is $30 each and market value of the preferred shares is $50 each? (Round to nearest dollar) Select one: . a. $44,000 O b. $46,000 O c. $54,000 O d. $26,000 O e. $18.000 Clear my choice Clear my choice Case Corporation issues $100,000, 10%, five-year bonds at 104. The total interest expense over the life of the bonds is: Select one: O a. $56,000 O b. $44,000 O c. $46,000 O d. $50,000 O e. $54,000 Clear my choice What effect will the acquisition of treasury stock have on earnings per share and Retained Earnings, respectively? Select one O a. Decrease and no effect O b. Increase and no effect O c. Decrease and increase O d. Increase and decrease O e. Decrease and decrease A company grants its executives stock options as a form of compensation. The company correctly determines the fair value of the options. During the expected period of benefit, the company records the complete journal entry relating to compensation expense. How does this journal entry affect Net Income and Total Stockholders' Equity respectively? Select one: O a. No Effect, Increase O b. No Effect, No Effect O c. Decrease, Increase O d. Decrease, Decrease O e Decrease, No Effect Stock Options should be included in the diluted eamings per share computation as if the options had been converted into common stock if their exercise price is in relation to the market price of the stock, Select one: O a. Either Greater or Lower b. Lower, but not Greater O c Greater, but not lower