13.) Gomez Company has 50,000 shares of $200 par value, 8% cumulative preferred stock and 160,000 shares of $120 par value common stock.Francisco declares and pays cash dividends amounting to $880,000. If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?

Preferred $800,000 / Common $80,000

Preferred $640,000 / Common $240,000

Preferred $256,000 / Common $624,000

Preferred $880,000 / Common $0

1.) ABC Company has a 2-for-1 stock split of 50,000 shares of $2 par value stock. After the split, there are 100,000 shares of $2 par value stock

True

False

2.) Harry's Motor Corporation had net income of $325,000 for 2016. Also during 2016, the company paid out $10,000 in dividends and repurchased 20,000 shares of treasury stock at $10 per share. The total change in stockholders' equity was $115,000.

True

False