1. The shareholders' equity section of the Jason Company as of December 31, 2017, was as follows:

   Common stock	$180,000
   Additional paid-in capital (Common stock)	110,000
   Retained earnings	160,000
   Total shareholders' equity	$450,000
   	.

   On January 15, the company repurchased 1,500 shares of its own stock at $60 for treasury stock. On January 16, as part of a compensation package, the company reissued half of the treasury shares to executives, who exercised stock options for $20 per share. On January 28, the company reissued the remainder of the treasury stock on the open market for $65 per share. Which of the following would be included in the journal entry recorded on January 28?

   		A credit to Treasury Stock for $48,750
   		A credit to Additional Paid-In Capital, Treasury Stock for $48,750
   		A debit to Cash for $45,000
   		A credit to Additional Paid-In Capital, Treasury Stock for $3,750
   		None of these choices is correct.

On the income statement, interest revenue is found in

		operating revenues and expenses.
		other revenues or expenses.
		the disposal of a business segment section.
		the cost of goods sold section.

Which of the following statements is false regarding diluted earnings per share?

		Reporting diluted earnings per share is required by GAAP when potentially significant dilution of EPS exists.
		Diluted earnings per share can be used to reflect the extent of potential share dilution.
		Diluted earnings per share is not reported by some companies.
		Diluted earnings per share is always the same as basic earnings per share.

QUESTION 39 The following year-end totals were taken from the records of Langston Company. Langston Company Year-End Totals 2017 2016 Prepaid insurance $8,000 $5,200 Wages payable 7,000 0 Insurance expense 4,000|| 5,700 Wage expense 9,500|| 4,000 What is the amount of cash outflow associated with insurance during 2017? $4,000 $2,800 $1,700 $6,800 None of these choices is correct