1. Morris Corporation began operations on January 1, 2021. The firm was authorized to issue 600,000 shares of $1 par common stock. During 2021, Morris had the following transactions relating to shareholders equity: January 1, issued 8,000 shares of common stock at $9 per share July 9, issued 18,000 shares of common stock at $10 per share Net income for the year was $110,000. Dividends paid was $30,000. Treasury shares purchased: 6,000 shares at $11 each (these shares were part of the July 9 issue) What is the total of shareholders equity at the end of 2021?

A. 4296,000. B. $266,000. C. $332,000. D. $362,000.

2. Carson City Enterprises had the following items in their stockholders equity on December 31, 2021: Deficit (debit balance in retained earnings) $ 1,500 Common stock 1,000 Paid-in capitalshare repurchase 500 Treasury stock (at cost) 200 Paid-in capitalexcess of par 15,000 During 2022 net income was $4,500; 25% of the treasury stock was resold for $225; cash dividends declared were $300; cash dividends paid were $250. What was shareholders' equity as of December 31, 2021?

A. $14,800. B. $15,200. C. $17,800. D. $19,225.

3. Accumulated other comprehensive income:

A. Is an asset.

B. Might include gains and losses on certain investments.

C. Includes accumulated net income.

D. Is reported between assets and liabilities.

4. Corporations are formed in accordance with:

A. The Model Business Corporation Act.

B. Federal statutes.

C. The law of individual states.

D. Federal trade commission regulations.

5. The preemptive right refers to the shareholders right to:

A. Maintain a proportional ownership interest in the corporation.

B. Vote for members of the board of directors.

C. Receive a share of dividends.

D. Share in profits proportionally with all other stockholders.