1. Cansay Co. has 100,000 shares of $10 par value common stock and 5,000 shares of $100 par value 5% cumulative preferred stock outstanding. No dividends had been paid in either 2016 or 2017. Cansay Co. is planning to pay a cash dividend in 2018. If the cash dividend is for $60,000 in total, how much will be received by common stockholders?

Multiple Choice

$70,000

$35,000

$0

$10,000

2. On January 1, 2018, Crimson Corp., a closely held corporation, issued 5% bonds with a maturity value of $90,000, together with 1,500 shares of its $3 par value common stock, for a combined cash amount of $121,800. The market value of Crimsons stock is uncertain. If the bonds had been issued separately they would have sold at 102. What amount should Crimson report for additional paid-in capital (or paid-in capitalexcess of par) upon issuing the stock?

Multiple Choice

$31,800

$25,500

$34,500

$30,000

3. Edge Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During 2018, Edge Company had the following transactions involving its own stock:

On March 6, acquired 12,000 shares of treasury stock at a cost of $12 per share

On April 18, resold 4,000 shares of treasury stock at $15 per share.

On June 11, resold an additional 2,000 shares of treasury stock at $18 per share

If Edge uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

Multiple Choice

$72,000

$24,000

$12,000

$0