diff --git a/activerecord/lib/active_record/relation.rb b/activerecord/lib/active_record/relation.rb
index 852f407..2d994ef 100644
--- a/activerecord/lib/active_record/relation.rb
+++ b/activerecord/lib/active_record/relation.rb
@@ -102,12 +102,12 @@ module ActiveRecord
 
     # Returns size of the records.
     def size
-      loaded? ? @records.length : count
+      loaded? ? @records.length : apply_limit_offset(count)
     end
 
     # Returns true if there are no records.
     def empty?
-      loaded? ? @records.empty? : count.zero?
+      loaded? ? @records.empty? : apply_limit_offset(count).zero?
     end
 
     def any?
@@ -408,5 +408,13 @@ module ActiveRecord
       string.scan(/([a-zA-Z_][.\w]+).?\./).flatten.map{ |s| s.downcase }.uniq - ['raw_sql_']
     end
 
+    def apply_limit_offset(value)
+      # called in size and empty? on relations that have not yet been loaded to
+      # work around an issue with limit and offset in SELECT COUNT(*) queries
+      value -= @offset_value if @offset_value
+      value = 0 if value < 0
+      value = @limit_value if @limit_value && value > @limit_value
+      value
+    end
   end
 end
diff --git a/activerecord/lib/active_record/relation/calculations.rb b/activerecord/lib/active_record/relation/calculations.rb
index abc4c54..fdc76c0 100644
--- a/activerecord/lib/active_record/relation/calculations.rb
+++ b/activerecord/lib/active_record/relation/calculations.rb
@@ -199,7 +199,12 @@ module ActiveRecord
       column = aggregate_column(column_name)
 
       # Postgresql doesn't like ORDER BY when there are no GROUP BY
-      relation = except(:order)
+      unless operation == "count"
+        relation = except(:order)
+      else
+        # if this is a COUNT query, limit and offset should be excluded
+        relation = except(:limit, :offset, :order)
+      end
       select_value = operation_over_aggregate_column(column, operation, distinct)
 
       relation.select_values = [select_value]
diff --git a/activerecord/test/cases/calculations_test.rb b/activerecord/test/cases/calculations_test.rb
index 3121f16..5208f22 100644
--- a/activerecord/test/cases/calculations_test.rb
+++ b/activerecord/test/cases/calculations_test.rb
@@ -379,4 +379,34 @@ class CalculationsTest < ActiveRecord::TestCase
     distinct_authors_for_approved_count = Topic.group(:approved).count(:author_name, :distinct => true)[true]
     assert_equal distinct_authors_for_approved_count, 2
   end
+
+  def test_limit_with_size
+    assert_equal Company.limit(5).size, 5
+    assert_equal Company.limit(15).size, 10
+  end
+
+  def test_offset_with_size
+    assert_equal Company.offset(2).size, 8
+    assert_equal Company.offset(10).size, 0
+  end
+
+  def test_limit_and_offset_with_size
+    assert_equal Company.limit(10).offset(3).size, 7
+    assert_equal Company.limit(2).offset(10).size, 0
+  end
+  
+  def test_limit_with_empty
+    assert Company.limit(5).empty? == false
+    assert Company.limit(0).empty? == true
+  end
+
+  def test_offset_with_empty
+    assert Company.offset(1).empty? == false
+    assert Company.offset(10).empty? == true
+  end
+
+  def test_limit_and_offset_with_empty
+    assert Company.limit(2).offset(1).empty? == false
+    assert Company.limit(3).offset(10).empty? == true
+  end
 end