ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DO | Page 16

sheet ? A . At the face amount . B . At the face amount with a separate deferred asset for the discount calculated at the imputed interest rate . C . At the face amount with a separate deferred credit for the discount calculated at the imputed interest rate . D . At the face amount minus a discount calculated at the imputed interest rate . 2 7 . Based on the stock transactions below , what is the weighted average number of shares outstanding as of December 21 , Year 1 , that should be used in the calculation of basic earnings per share in the financial statements issued on March 1 , Year 2 ? Date January 1 , Year 1 April 1 , Year 1 June 1 , Year 1 February 15 , Year 2 March 15 , Year 2 A . B . C . D . Transactions Beginning Balance 100,000 Issued 30,000 shares for cash 50 % stock dividend 2-for-1 stock split Issued 40,000 shares for cash 147,500 183,750 295,000 367,500 8 . On January 1 , 2016 , a company ’ s new president was awarded a $ 200,000 bonus that would be paid out in two $ 100,000 installments in 2018 ( year 3 ) and 2019 ( year 4 ) of employment , contingent on employment through the year ending December 31 , 2017 . How much should the company expense for this bonus in 2017 and