Question : 104. Refer to the information above. Assume that all remaining treasury : 1229399

104. Refer to the information above. Assume that all remaining treasury stock is reissued at a price of $14 per share in January of 2010. What amount should be credited to the account Additional Paid-In Capital: Treasury Stock Transactions in the journal entry to record this transaction? 
A. $14,000.
B. $30,000.
C. $40,000.
D. $70,000.

105. A company had 240,000 shares of common stock outstanding on January 1 and then sold 60,000 additional shares on April 30. Net income for the year was $426,750. What are earnings per share? 
A. $1.42.
B. $1.52.
C. $1.78.
D. $7.11.

106. Colfax Corporation’s financial statements for the current year include the following:
  
On the basis of this information, net income for the current year is: 
A. $1,251,200.
B. $696,400.
C. $570,600.
D. $1,439,600.

107. During the year 2011, Torino Corporation suffered a $1,200,000 loss when its factory was severely damaged in an earthquake. Assuming the corporate income tax rate is 30%, what amount will Torino report as an extraordinary loss on its income statement for 2010? Assume earthquakes are not common in this area. 
A. $1,200,000.
B. $840,000.
C. $360,000.
D. Nothing, since this does not qualify as an extraordinary item.

108. National Corporation was organized on January 1 and issued 600,000 shares of common stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net income for the year was $3,675,000. Net earnings per share amounted to: 
A. $5.25.
B. $6.13.
C. $4.59.
D. $9.19.

109. On January 1, 2011, Ole Corporation had 75,000 shares of $8 par value common stock outstanding. On July 31, 2011, Ole issued an additional 10,000 shares in exchange for a building. What number of shares will be used in the computation of basic earnings per share for the year 2011? 
A. 75,000.
B. 80,000.
C. 79,167.
D. 85,000.

110. On January 1, 2010, Alice Corporation had 20,000 shares of $6 par value common stock and 10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 3 for 1 conversion privilege. As of December 31, 2010, none of the preferred shares had been converted. What number of shares must Alice use in computing diluted earnings per share at December 31, 2010? 
A. 10,000.
B. 20,000.
C. 30,000.
D. 50,000.

111. At the beginning of the current year, Wilson Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000 and paid a year-end cash dividend of $3 per share. What was Wilson Corporation’s retained earnings at the end of the year? 
A. $6,275,000.
B. $5,875,000.
C. $6,475,000.
D. $4,800,000.

112. On January 31, Village Bank had 500,000 shares of $3 par value common stock outstanding. On that date, the company declared a 10% stock dividend when the market price of the stock was $62 per share. The immediate effect of this dividend upon Village Bank was: 
A. A reduction in cash of $3,794,500.
B. A reduction in retained earnings of $3,100,000.
C. A reduction in retained earnings of $150,000.
D. A liability to the stockholders of $150,000.

The stockholders’ equity section of the balance sheet of Crammond Corporation at December 31, appears as follows:
 

113. Refer to the information above. What was the average issue price per share of preferred stock? 
A. $100.00.
B. $125.71.
C. $175.50.
D. $300.00.

114. Refer to the information above. How many shares of common stock are outstanding? 
A. 100,000.
B. 80,000.
C. 75,000.
D. 110,000.