1. A new corporation ended its first year of operations with assets of $115,000, liabilities of $75,000, and contributed capital in common shares of $10,000. What was the corporation's net income for the year, assuming $15,000 in dividends were paid? A) $25,000 B) $35,000 C) $40,000 D) $45,000 E) None of the above. 2. Xtreme Sports has 1000 common shares outstanding on January 1, 2022. Early in the year, the shares were reverse split 1 for 4 , and near the end of the year a 20% share dividend was distributed. The number of shares outstanding after the dividend should be 300 . A) True. B) False. 3. The date of record is the date the directors vote to pay a dividend to shareholders. A) True B) False 4. Corporations differ from proprietorships and partnerships in that corporations pay income taxes and can claim them as an expense, while proprietorships and partnerships don't. A) True B) False 5. A share dividend reduces a corporation's assets and shareholders' equity. A) True B) False