In large bowl, combine flour, baking powder, baking soda and salt; mix well. Using fork or pastry blender, cut in 1 cup margarine until mixture is crumbly. In small bowl, beat eggs. Gradually add sugar, 1 teaspoon vanilla and lemon extract, beating until light. Add to flour mixture in large bowl. Stir by hand until dough forms. (If necessary, knead dough with hands to mix in dry ingredients.) Cover with plastic wrap; refrigerate 1 hour for easier handling.
Heat oven to 375°F. On lightly floured surface, roll out 1/3 of dough at a time to 1/8-inch thickness. (Keep remaining dough refrigerated.) Cut with 2 1/2 to 3-inch floured cookie cutters. Place 1 inch apart on ungreased cookie sheets. If desired, decorate with decorator sugar or multicolored candy sprinkles.
Bake at 375°F. for 6 to 11 minutes or until edges are light golden brown. Immediately remove from cookie sheets. Cool 15 minutes or until completely cooled.