Q31. Crockett, Inc., had 100,000 shares of common stock outstanding on 1 January 2004. the company has no plans to issue additional shares or purchase. treasury shares during the year, but does plan either a two-for-one stock split or a 100 percent stock dividend on 1 July. The number of shares that will be used to determine earnings per share at 31 December 2004, if the company used the two-for-one stock or 100 percent stock dividend, respectively, is closest to;

Two-for-one stock split                 100percent stock dividend

A.         150,000                            150,000                .

B.         150,000                            200,000

C.         200,000                            150,000

D.         200,000                            200,000

答案和详解如下：

Q31.  D   Study Session 8-39. c

Stock dividends and stock splits are treated the same way for purposes of determining weighed average number of shares outstanding; the adjustment in the number of shares is made as if the stock split or dividend occurred at the beginning of the year.

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