10,000
		480

Entity I needs to raise $1 million to finance a plant expansion. An advantage of meeting this requirement by issuing shares of common stock (rather than issuing bonds payable) is that: o in arriving at net income, the company will be able to deduct dividends paid on common stock. the company will be able to deduct for tax purposes any dividends on common stock investors will be required to purchase more common stock to retain their same percentage ownership of the company. with common stock, the company may choose to pay low or no dividends. QUESTION 15 Entity C sold a used heavy-duty, hot pressure washer for $1,500. The pressure washer cost $10,000 new and the related accumulated depreciation was $7,100. What is the amount of gain or loss on the sale? O $1,400 loss $1,500 gain. $8,500 loss. $1,400 gain. QUESTION 16 Entity J had the following accounts: Common stock, $2 par, 10,000 shares authorized, 500 shares issued, ?? shares outstanding $ 1,000 Paid-in-capital in excess of par 16,500 Treasury stock (20 shares at cost) 1,200 Retained earnings 75,000 What is number of common shares outstanding? O 9,500 O 500