1.) During 2014, Lopez Corporation disposed of Pine Division, a major component of its business. Lopez realized a gain of $2,400,000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $2,800,000 in 2014. How should these facts be reported in Lopez's income statement for 2014?

Total Amount to be Included in

Income from Continuing Operations Discontinued Operations

a. $2,800,000 loss $2,400,000 gain

b. 400,000 loss 0

c. 0 400,000 loss

d. 2,400,000 gain 2,800,000 loss

2.) In 2014, Esther Corporation reported net income of $600,000. It declared and paid preferred stock dividends of $150,000 and common stock dividends of $60,000. During 2014, Esther had a weighted average of 250,000 common shares outstanding. Compute Esther's 2014 earnings per share.

a. $1.56

b. $1.80

c. $2.40

d. $3.00

3.) During the fiscal year ended 2016, a company had revenues of $400,000, cost of goods sold of $280,000, and an income tax rate of 30 percent on income before income taxes. What was the company's 2016 net income?

a. $120,000

b. $36,000

c. $84,000

d. $400,000

4.) What financial statement would you look at to determine the dividends declared by a business?

a. Income statement

b. Statement of stockholders' equity

c. Statement of cash flows

d. Balance sheet

5.) Willie Company's retained earnings increased $20,000 during 2016. What was Willie's 2016 net income or loss given that Willie declared $25,000 of dividends during 2016?

a. Net income was $5,000

b. Net income was $45,000

c. Net loss was $45,000

d. Net loss was $5,000

6.) Which of the following are the components of stockholders' equity on the balance sheet?

a. Common stock and liabilities

b. Common stock and assets

c. Retained earnings and dividends

d. Common stock and retained

***Please provide answers to the multiple choice questions and explanations if possible! Thanks!