1. The following data were reported by a corporation:

Authorized shares 120,000
Issued shares 115,000
Treasury shares 30,000

The number of outstanding shares is:

1. 12,000

2. 115,000

3. 5,000

4. 120,000

   2. Xtreme Sports has $200,000 of 7% noncumulative, nonparticipating, preferred stock outstanding.

Xtreme Sports also has $500,000 of common stock outstanding. In the company's first year of operation,

no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $60,000. This

dividend should be distributed as follows:

1. $8,000 preferred; $22,000 common.

2. $14,000 preferred; $46,000 common.

3. $7,500 preferred; $22,500 common.

4. $30,000 preferred; $30,000 common.

5. $0 preferred; $60,000 common.

5. 85,000