Queens, Inc. initially issued 200,000 shares of $1 par stock for $1,000,000 in 2019. In 2020, the company repurchased 20,000 shares at a price of $10 per share and designated the shares as treasury stock. In 2021, 10,000 of the repurchased treasury shares were resold for $16 per share. In its balance sheet dated December 31, 2021, Queens, Inc.'s Treasury Stock account shows a balance of:

		$40,000.
		$200,000.
		$100,000.
		$0.

At the start of the current year, Frankfurt Corporation had 3 million shares of common stock outstanding. Convertible bonds outstanding totaled $5,000,000 and pay interest at 6% annually. The bonds were issued at face amount at the beginning of the year. Frankfurt reported net income of $2.4 million for the year and its tax rate is 25%. The bonds are convertible into 500,000 shares of common stock. What is the total incremental amount added to the basic EPS numerator in Frankfurts calculation of diluted EPS?

		$375,000.
		$75,000.
		$225,000.
		$300,000.

Penguin Corporation was organized on January 1, 2021. The firm was authorized to issue 200,000 shares of $1 par common stock. During 2021, Penguin had the following transactions relating to shareholders' equity:

Issued 30,000 shares of common stock at $6 per share.

Reported a net income of $150,000.

Paid cash dividends of $30,000.

Purchased 5,000 shares of treasury stock at $10.

What is total shareholders' equity at the end of 2021?

		$100,000.
		$300,000.
		$350,000.
		$250,000.

Which of the following circumstances creates a future taxable amount?

		Warranty costs: tax deductible when paid, accrued for financial reporting purposes when probable and estimable.
		Investment expenses incurred to obtain tax-exempt income (never tax deductible).
		Service fees collected in advance from customers: taxable when received, recognized for financial reporting when earned.
		Straight-line depreciation for financial reporting and accelerated depreciation for tax reporting.

Under its executive stock option plan, Pink Corporation granted restricted stock units (RSUs) on January 1, 2021, that award executives 20 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares.

The common shares had a market price of $6 per share on the grant date. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the RSUs. Pink Corporation records forfeitures as they occur. How much in compensation expense is recorded in the year 2022 related to the RSUs?

		$40 million.
		$38 million.
		$0.
		$36 million.