13. Treasury shares plus outstanding shares equal a. authorized stock. b. issued stock. c. unissued stock. d. distributable stock 14. Jason Hansen has invested $600,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Hansen stand to lose? a. Up to his total investment of $600,000. b. Zero. c. The $600,000 plus any personal assets the creditors demand. d. $400,000. 15. The following data is available for BOX Corporation at December 31,2020 : Commonstock,par$10(authorized30,000shares)Treasurystock(atcost$15pershare)$270,000$1,200 Based on the data, how many shares of common stock are Outstanding? a. 30,000 . b. 27,000 . c. 29,920 . d. 26,920 . 16. A corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $700,000. b. Decrease by $400,000. c. Decrease by $700,000. d. Decrease by $300,000. 17. Denson, Inc. has 10,000 shares of 5%,$100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2019. The board of directors declares and pays a $120,000 dividend in 2020 . What is the amount of dividends received by the common stockholders in 2020 ? a. $20,000. b. $50,000. c. $120,000. d. $70,000. 13. Treasury shares plus outstanding shares equal a. authorized stock. b. issued stock. c. unissued stock. d. distributable stock 14. Jason Hansen has invested $600,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Hansen stand to lose? a. Up to his total investment of $600,000. b. Zero. c. The $600,000 plus any personal assets the creditors demand. d. $400,000. 15. The following data is available for BOX Corporation at December 31,2020 : Commonstock,par$10(authorized30,000shares)Treasurystock(atcost$15pershare)$270,000$1,200 Based on the data, how many shares of common stock are Outstanding? a. 30,000 . b. 27,000 . c. 29,920 . d. 26,920 . 16. A corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $700,000. b. Decrease by $400,000. c. Decrease by $700,000. d. Decrease by $300,000. 17. Denson, Inc. has 10,000 shares of 5%,$100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2019. The board of directors declares and pays a $120,000 dividend in 2020 . What is the amount of dividends received by the common stockholders in 2020 ? a. $20,000. b. $50,000. c. $120,000. d. $70,000
