1.) The charter of a corporation provides for the issuance of 106,022 shares of common stock. Assume that 40,954 shares were originally issued and 4,994 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a.$71,920

b.$4,994

c.$40,954

d.$106,022

2.) The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a.$120,000

b.$60,000

c.$20,000

d.$100,000

3.) Nevada Corporation has 40,800 shares of $22 par stock outstanding that has a current market value of $174. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be

a.204,000

b.448,800

c.40,800

d.163,200

4.) The charter of a corporation provides for the issuance of 81,000 shares of common stock. Assume that 44,000 shares were originally issued and 3,600 were subsequently reacquired. What is the amount of cash dividends to be paid if a $3-per-share dividend is declared?

a.$132,000

b.$10,800

c.$243,000

d.$121,200

5.) Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance.

a.$41,000

b.$44,000

c.$34,000

d.$37,000