$1.$ Pug Corporation has $10,000$ shares of $$10$ par common stock outstanding and $20,000$ shares of $$100$ par, $6\%$ noncumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $$150,000$ dividend will be paid. What are the dividends per share for preferred and common, respectively?

Multiple Choice

$$7\mathrm{.}50$; $$0$

$$6$; $$3$

$$6$; $$1\mathrm{.}50$

None of these answer choices are correct.

$2.$ Which of the following statements is true as to GAAP regarding accounting for income taxes, and its use of the asset and liability approach?

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Multiple Choice

a$)$ The approach is consistent with a balance sheet emphasis of U$.$S$.$ GAAP and the International Financial Reporting Standards $($IFRS$).$

b$)$ Considerable flexibility is permitted in the balance sheet classification of deferred tax amounts.

c$)$ The approach is consistent with cash basis accounting.

d$)$ The approach recognizes the time value of money.

$3.$ Air Destinations issues bonds due in $10$ years with a stated interest rate of $6\%$ and a face value of $$500,000.$ Interest payments are made semi$-$annually. The market rate for this type of bond is $7\%.$ Calculate the issue price of the bonds.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Multiple Choice

$$464,471$

$$359,528$

$$500,000$

$$537,194$