10:11 g, 82% Alliance Agreement Corporation is considering two plans for raising $2,500,000 to expand its current operations. The first plan involves the sale of $2,500,000, 8%, 10-year bonds sold at face value. The second plan involves selling 50,000 common shares at $50 each. Alliance Agreement Corporation currently has outstanding 200,000 shares of stock and a net income of $900,000. Either plan is expected to generate an additional income of $400,000 before interest and taxes. The income tax rate is 30%. 1. Calculate earnings per share for both plans. Question 7.6 Loki Corporation earned a net income of $90,000 during the year ended December 31, 2016. On December 15, Loki had declared the annual cash dividend on its $0.35 preferred shares (5,000 shares issued for $80,000) and a $0.40 per share cash dividend on its common shares (20,000 shares issued for $60,000). Loki then paid the dividends on January 4, 2017. 1. Journalize the following for Loki Corporation: Declaring the cash dividends on December 15, 2016. Paying the cash dividends on January 4, 2017 2. Did Retained Earnings increase or decrease during 2016? If so, by how much