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19. Assuming that $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive? a) $ 0 b)

19. Assuming that $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive? a) $ 0 b) $ 8,000

c) $16,000

d) $21,000

20. The Common Shares account currently shows a balance of $200,000. Assuming that $61,000 will be distributed as a dividend in the current year, and the preferred shares are also fully participating, how much will the common shareholders receive? a) $37,000

b) $30,000

c) $31,000

d) $16,000

21. Sarajevo Ltd. currently has outstanding 20,000 no par value common shares with a carrying value of $200,000, and 10,000 no par value, $0.60, cumulative, fully participating preferred shares with a carrying value of $100,000. Dividends on the preferred shares are one year in arrears. Assuming that Sarajevo wishes to distribute $54,000 in dividends, the common shareholders will receive

a) $12,000. b) $22,000. c) $32,000. d) $42,000.

Use the following information for questions 2224.

Instanbul Corp. has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares. Dividends have been paid every year except last year and the current year. The carrying value of the preferred shares is $200,000 and of the common shares is $300,000.

22. If the preferred shares are cumulative and non-participating and $100,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $68,000.

c) $84,000. d) $100,000.

23. If the preferred shares are noncumulative and fully participating and $70,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $42,000.

c) $46,000.

d) $54,000.

24. If the preferred shares are cumulative and fully participating and $101,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $51,000.

c) $61,000. d) $69,000.

25. The December 31, 2018 condensed balance sheet of Bee Services, a proprietorship, follows:

Current assets ` Property, plant and equipment (net)

Liabilities Betty Bee, Capital

Fair values at December 31, 2018, are as follows: Current assets

Equipment Liabilities

$140,000 130,000 $270,000

$ 70,000 200,000 $270,000

$160,000 210,000 70,000

On January 1, 2019, Bee Services was incorporated as Bee-Line Ltd., with 10,000 no par value common shares issued. How much should be credited to Common Shares? a) $370,000 b) $300,000

c) $270,000 d) $200,000

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