1. Bahrain, Inc. has 2,000 shares of 8%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011, and December 31, 2012. The board of directors declared and paid a $4,000 cash dividend in 2011. In 2011, $20,000 of dividends are declared and paid. The dividends received by the preferred and common shareholders in 2012 are: Common Preferred A. 10,000 $10,000 B. $8,000 $12.000 C. $6,000 $14.000 D. $12,000 $8.000 Item 2. Which of the following show the proper if a stock split and a stock dividends? A. Total paid-in-capital Stock Split Increase B. Total par value (common) C. Par value per share Decrease D. Total retained earnings Decrease Decrease Stock Dividend Increase Increase No change Decrease 3. A corporation has the following account balances: Common stock, $1 par value, $15,000; paid-in-Capital in Excess of par value, $350,000. Based on this information, the A. Number of shares issued are 15,000. B. Number of shares outstanding are 365,000 C. Average price per share is $2.43. D. Legal capital is 365,000. LEARNING CENTER 4. XYZ Company is publicly held corporation whose $1 par value per share. The company issued 6,000 shares of stock to acquire a land that has market value of $90,000. When recording this transactions, XYZ Company will A. Credit Paid-in-Capital in Excess of Par Value for $6,000. B. Credit Common Stock for $90,000. C. Debit Land for $90,000. D. Debit Land for $6,000. 5. All of the following represent advantages of corporations except: A. Unlimited stockholders' liability. B. Continues life and transferability of ownership. C. Separate legal entity. D. No mutual agency