14. Paiva Corporation splits its common stock 2 for 1, when the market value is $80 per share. Prior to the split, Paiva had 100,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock A) remains the same. B) is reduced to $2 per share. C) is reduced to $5 per share. D) is reduced to $20 per share. 15. If common stock is issued for an amount greater than par value, the excess should be credited to A) Cash. B) Retained Earnings. C) Paid-in Capital in Excess of Par. D) Legal Capital. 16. The contractual interest rate is always equal to the market interest rate on the date that bonds are issued. A) True B) False 17. If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date. A) True B) False 18. Dividends are declared out of A) Capital Stock B) Paid-in Capital in Excess of Par. C) Retained Earnings D) Treasury Stock Page r a 19. For external reporting, a company must prepare either an income statement o statement of cash flows, but not both. A) True B) False 20. Callable bonds are bonds that A) are in the possession of a bank. B) are registered in the name of the owner. C) Can be redeemed early with a payment of a premium. D) have detachable interest coupons. 21. A statement of cash flows summarizes the operating, activities of an entity (worth 3 points). -and