14. Poodle Corporation was organized on January 3, 2006. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2006, Poodle had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is total contributed capital at the end of 2006? A. $470,000. B. $320,000. C. $420,000. D. $370,000. 15. On October 1, 2006, Chief Corporation declared and issued a 10% stock dividend. Prior to this date, Chief had 80,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend Chiefs retained earnings will: A. Decrease by $80,000. B. Decrease by $40,000. C. Not change. D. Increase by $80,000. 17 Which of the following circumstances create future deductible amount conditions? A) Sales of property (installment method for tax purposes). B) Prepaid operating expenses C) Accrued warranty expenses. D) Earning of non-taxable interest on municipal bonds. 18. Which of the following usually results in increases in deferred tax liabilities? A) Prepaid operating expenses B) Accrual of estimated operating expenses. C) Revenue collected in advance. D) All of the above are correct. A magazine publisher collects one year in advance for subscription revenue. In the year of providing the magazines, the company would record: A) A decrease in a deferred tax asset. B) An increase in a deferred tax liability. C) A decrease in a deferred tax liability. D) An increase in a deferred tax asset. 19