Question 1 Identify if the statement is True or False. When a corporation pays a dividend, the dividends are only taxed once: at the shareholder level. [ Choose ] True False [Choose ] Creditors of a corporation do not have a legal claim on the personal assets of the stockholders if the corporation goes bankrupt. If a stockholder wishes to sell their stock in a corporation, they must obtain corporate approval to do so. [ Choose] An individual person has many more rights than a corporation does. [ Choose ] > It is very difficult for corporations to obtain cash through the sale of stock. [ Choose The death of a stockholder has no affect on the daily operations of the corporation. [ Choose) > A drawback of being a corporation is that they are required to follow Federal, State and SEC laws Choose Stockholders of a corporation do not have a direct say in how the corporation is managed. [Choose ] Stockholders elect the officers of the corporation who in turn, select the board of directors [Choose ] True False It is very difficult for invidudal stockholders to sell their stock if they wish to do so. [ Choose ] Question 15 Use the following information to answer the next two questions ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock - $700,000 Paid-in Capital excess of par value - preferred stock - $80,000 Paid-in Capital excess of par value-common stock - $800,000 Retained Earnings - $1,500,000 Treasury stock - $250,000 NOTE: Use commas but do NOT use $ signs or cents. 1. What is the total amount of Paid-in Capital as of December 31? Use the following information to answer the next two questions ROK Corporation's December 31, 2010 balance sheet showed the following Preferred Stock - $150,000 Common Stock - $700,000 Paid-in Capital excess of par value - preferred stock - $80,000 Paid-in Capital excess of par value-common stock - $800,000 Retained Earnings - $1,500,000 Treasury stock - $250,000 NOTE: Use commas but do NOT use $ signs or cents. 1. What is the total amount of Paid-in Capital as of December 31? Question 16 What is the total amount of Stockholders' Equity as of December 31? 2 pts Question 17 Which of the following statements regarding dividends in arrears on cummulative preferred stock is FALSE? Othey are dividends that have not been declared for a given period of time. Othey should be disclosed in the notes to the financial statements Othey must be paid before common stockholders can receive a dividend they are dividends that have been declared but not yet paid. Question 18 2 pts ROK Corporation had the following shares of stock outstanding on December 31, 2010: Common Stock, $25 par value, 200,000 shares outstanding Preferred stock, 6%, $100 par value, cummulative, 20,000 shares outstanding Dividends were in arrears for 2008 and 2009. On December 31, 2010, total cash dividends of $500,000 were declared. NOTE: Use commas but do NOT use $ signs or cents. 1. What is the total amount of dividends payable to preferred stockholders in 2010? Common Stock, $25 par value, 200,000 shares outstanding Preferred stock, 6%, $100 par value, cummulative, 20,000 shares outstanding Dividends were in arrears for 2008 and 2009. On December 31, 2010, total cash divi $500,000 were declared. NOTE: Use commas but do NOT use $ signs or cents. 1. What is the total amount of dividends payable to preferred stockholders in 2010? Question 19 What is the total amount of dividends payable to common stockholders in 2010
