ACCT 301B: Intermediate Accounting | Expert Verified Actual
Questions & Answers for Guaranteed Pass | Newest Update, The
Ultimate Study Guide for Yr. (2026/2027). (Answer Key at the end
of the Document)
Dr. Siyi Li
Additional Practice Questions for Exam 2
Note: These questions are for practice only. Actual exam questions might not
be the same.
1. On December 1, 2026, Canyoncrest Corporation exchanged 5,000 shares of its
$10 par value common stock held in treasury for a used machine. The treasury
shares were acquired by Canyoncrest at a cost of $40 per share, and are
accounted for under the cost method. On the date of the exchange, the common
stock had a fair value of $55 per share (the shares were originally issued at $30
per share). As a result of this exchange, Canyoncrest’s total stockholders' equity
will increase by
a. $275,000.
b. $ 50,000.
c. $200,000.
d. $225,000.
2. Redstone Company issues 6,000 shares of its $5 par value common stock
having a fair value of $25 per share and 9,000 shares of its $15 par value
preferred stock having a fair value of $20 per share for a lump sum of $310,000.
The proceeds allocated to the common stock is
a. $124,000
b. $140,909
c. $150,000
d. $169,091
1
, ACCT 301B Dr. Siyi Li
3. The following information is available for Barone Corporation:
January 1, 2026 Shares outstanding 4,000,000
April 1, 2026 Shares issued 640,000
July 1, 2026 Treasury shares purchased 240,000
October 1, 2026 Shares issued in a 100% stock dividend 4,400,000
The number of shares to be used in computing earnings per common share for
2026 is
a. 9,041,600.
b. 8,760,000.
c. 8,720,000.
d. 5,460,000.
4. Gannet Company had 300,000 shares of common stock issued and outstanding
at December 31, 2025. During 2026, no additional common stock was issued.
On January 1, 2026, Gannet issued 400,000 shares of nonconvertible preferred
stock. During 2026, Gannet declared and paid $180,000 cash dividends on the
common stock and $150,000 on the nonconvertible preferred stock. Net income
for the year ended December 31, 2026, was $960,000. What should be Gannet’s
2026 earnings per common share, rounded to the nearest penny?
a. $1.15
b. $2.10
c. $3.20
d. $2.70
5. On January 1, 2027, Roca Co. has the following balances:
Projected benefit obligation $3,730,000
Fair value of plan assets 3,340,000
The settlement rate is 10%. Other data related to the pension plan for 2027 are:
Service cost $334,000
Amortization of unrecognized prior service costs 78,000
Contributions 390,000
Benefits paid 150,500
2
Questions & Answers for Guaranteed Pass | Newest Update, The
Ultimate Study Guide for Yr. (2026/2027). (Answer Key at the end
of the Document)
Dr. Siyi Li
Additional Practice Questions for Exam 2
Note: These questions are for practice only. Actual exam questions might not
be the same.
1. On December 1, 2026, Canyoncrest Corporation exchanged 5,000 shares of its
$10 par value common stock held in treasury for a used machine. The treasury
shares were acquired by Canyoncrest at a cost of $40 per share, and are
accounted for under the cost method. On the date of the exchange, the common
stock had a fair value of $55 per share (the shares were originally issued at $30
per share). As a result of this exchange, Canyoncrest’s total stockholders' equity
will increase by
a. $275,000.
b. $ 50,000.
c. $200,000.
d. $225,000.
2. Redstone Company issues 6,000 shares of its $5 par value common stock
having a fair value of $25 per share and 9,000 shares of its $15 par value
preferred stock having a fair value of $20 per share for a lump sum of $310,000.
The proceeds allocated to the common stock is
a. $124,000
b. $140,909
c. $150,000
d. $169,091
1
, ACCT 301B Dr. Siyi Li
3. The following information is available for Barone Corporation:
January 1, 2026 Shares outstanding 4,000,000
April 1, 2026 Shares issued 640,000
July 1, 2026 Treasury shares purchased 240,000
October 1, 2026 Shares issued in a 100% stock dividend 4,400,000
The number of shares to be used in computing earnings per common share for
2026 is
a. 9,041,600.
b. 8,760,000.
c. 8,720,000.
d. 5,460,000.
4. Gannet Company had 300,000 shares of common stock issued and outstanding
at December 31, 2025. During 2026, no additional common stock was issued.
On January 1, 2026, Gannet issued 400,000 shares of nonconvertible preferred
stock. During 2026, Gannet declared and paid $180,000 cash dividends on the
common stock and $150,000 on the nonconvertible preferred stock. Net income
for the year ended December 31, 2026, was $960,000. What should be Gannet’s
2026 earnings per common share, rounded to the nearest penny?
a. $1.15
b. $2.10
c. $3.20
d. $2.70
5. On January 1, 2027, Roca Co. has the following balances:
Projected benefit obligation $3,730,000
Fair value of plan assets 3,340,000
The settlement rate is 10%. Other data related to the pension plan for 2027 are:
Service cost $334,000
Amortization of unrecognized prior service costs 78,000
Contributions 390,000
Benefits paid 150,500
2
