1.

Pearland, Inc. has 8,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 13% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred stockholders?

$34,615

$55,385

$7,200

$93,600

2.

Refer to the following information for Tangent Corporation: Common Stock, $1.00 par, 114,000 shares issued, 98,000 shares outstanding Paid-In Capital in Excess of Par-Common: $2,150,000 Retained Earnings: $930,000 Treasury Stock: 10,000 shares purchased at $35 per share If Tangent resold 1,300 shares of treasury stock for $22.50 per share, which of the following statements would be true?

The Treasury Stock account would decrease by $22,750.

The Retained Earnings account would increase by $29,250.

The Treasury Stock account would decrease by $45,500.

The Paid-In Capital in Excess of Par-Common account would increase by $1,300.