A. Treasury stock for the purchase price.
B. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value.
C. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value.
D. Paid-in capital in excess of par for the purchase price. 10) Antidilutive securities
A. include stock options and warrants whose exercise price is less than the average market price of common stock.
B. should be included in the computation of diluted earnings per share but NOT basic earnings per share.
C. should be ignored in all earnings per share calculations.
D. are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share.
11) What effect will the acquisition of treasury stock have on stockholders ‟ equity and earnings per share, respectively?
A. Decrease and increase B. Decrease and no effect C. Increase and decrease D. Increase and no effect
12) In computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are
A. considered outstanding at the beginning of the year.