1. Consider the following facts:

- Company A has issued 10%, nonparticipating, cumulative preferred stock with total par value of $400,000. - It also issued common stock with total par value of $800,000. - No dividends are in arrears. - Company A plans to pay cash dividends of $180,000 for the year. How much of the planned dividends will go to the preferred stockholders and how much to the common stockholders?

A. $80,000 to preferred and $100,000 to common

B. None of these answers are correct

C. $60,000 to preferred and $120,000 to common

D. $40,000 to preferred and $140,000 to common

E. $55,000 to preferred and $125,000 to common

2. Consider the following facts:

- At the beginning of 2017, Company B purchased 30% of the common stock of Company A for $80,000. - The purchase was made at book value. - For 2017, Company A reported net income of $20,000. - For 2018, Company A reported net income of $60,000. - For 2017, Company A paid dividends of $24,000. - For 2018, Company A paid dividends of $42,000. At the end of 2018, the balance in the Investment in Company A will be $ ________ of Company B's books.

A.$60,200

B.$63,400

C.None of these answers are correct.

D.$104,000

E. $86,200

3.Consider the following facts:

- At the beginning of the year, Company A had 25,000 shares of common stock outstanding. - On July 1, it issued an additional 10,000 shares of common stock. - On November 1, Company A declared a 2-for-1 stock split. For the purpose of computing earnings per share, the weighted average common shares outstanding should be _____________.

A.50,000

B.60,000

C.56,000

D.None of these answers are correct

E.35,000