ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DO | Page 18

its nonconvertible preferred stock. What is the 2016 basic earnings
per share
(rounded)?
A. $2.16.
B. $3.50.
C. $3.10.
D. $2.80. 12. The following information pertains to Hurce Company's
outstanding stock for 2016:
Common Stock, $1 Par
Shares Outstanding , 1/1/2016
2 for 1 stock split, 4/1/2016
Shares Issued, 7/1/2016
Preferred Stock, $100 par, 7% cumulative
Shares outstanding, 1/1/2016 10,000
10,000
5,000
4,000 What is the number of shares Hurce should use to calculate
2016 basic earnings per
share?
A. 20,000.
B. 22,500.
C. 25,000.
D. 27,000. 4 13. Velasco Co. changed from straight-line to DDB
depreciation. The journal entry to
record the change includes:
A. A credit to accumulated depreciation.
B. A debit to accumulated depreciation.
C. A debit to a depreciable asset.
D. The change does not require a journal entry.
14. During 2016, Hutton Co. decides to use FIFO to account for its
inventory
transactions. Previously, it had used LIFO.
A. Hutton is not required to make any accounting adjustments.
B. Hutton has made a change in accounting principle requiring
retrospective
adjustment.
C. Hutton has made a change in accounting principle requiring