Given the following for the Austin Company: -Net Income $300,000

-tax rate 30%

-closing market price per common share $32

-average market price per common share $30

-common shares outstanding(entire year)

The following Capital Structure items existed for the entire year:

1. 6%, Cumulative Preferred Stock (Total par $200,000), Convertible to 20,000 common shares. 2. Stock Options to purchase 12,000 Common Shares at $31 per share. In the computation of Diluted EPS, the numerator is:

Select one: a. $283,200 b. $296,400 c. $291,600 d. $288,000 e. $300,000

Anti-dilutive securities

Select one: a. should be included in the computation of diluted earnings per share but not basic earnings per share. b. are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share. c. include stock options and warrants whose exercise price is less than the average market price of common stock. d. should always be ignored in the computation of diluted EPS.

The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and the value of the warrants is a total of $10,000. The bonds with the warrants sold for $55,000. The journal entry to record the sale will include:

Select one: a. A debit to Discount on Bonds Payable for $6,000 b. A debit to Discount on Bonds Payable for $10,000 c. A credit to Premium on Bonds Payable for $5,000 d. A credit to Paid-in-Capital Stock Warrants for $10,000 e. A credit to Paid-in-Capital Stock Warrants for $5,000

BRB Company issues common shares and pays stock issue costs. The stock issue costs will affect what account?

Select one: a. Common Stock b. Stock Issue Costs (an asset) c. Stock Issue Cost Expense d. Paid-in-Capital

Case Corporation issues $100,000, 10%, five-year bonds at 94. The total interest expense over the life of the bonds is:

Select one: a. $56,000 b. $44,000 c. $50,000 d. $54,000 e. $46,000

GIVEN:

DATE: SHARE CHANGE

1/1 BEGINNING BALANCE OF 200 SHARES

4/1 PURCHASED 20 SHARES

8/1 A 2-FOR-1 STOCK SPLIT IS ANNOUNCED, RESULTING IN THE ISSURANCE OF 180 SHARES

10/1 ISSUED 60 ADDITONAL SHARES FOR CASH

11/1 PURCHASED 12 SHARES

For EPS, the weighted average number of shares is:

Select one: a. 387 b. 273 c. 398 d. 443 e. 383