1.Donald's Inc. would like to declare dividends by distributing inventory. Partial financial information for Donald's Inc. is below.

Cash balance..................$52,000

Inventory.......................$20,000

Retained Earnings............$10,000

Accounts Receivable.........$7,500

Dividends receivable.........$1,200

Shareholder's equity.........$129,000

What is the maximum property dividend that Donald's Inc. can declare given the above financial information?

$129,000

None of the other alternatives are correct

$1,200

$20,000

$52,000

2.Donald's Inc. would like to declare dividends by distributing accounts receivable rights. Partial financial information for Donald's Inc. is below.

Cash balance..................$2,000

Inventory.......................$20,000

Accounts Receivable.........$7,500

Dividends receivable.........$1,200

Common shares...............$100,000

Shareholder's equity.........$100,000

What is the maximum property dividend that Donald's Inc. can declare and pay given the above financial information?

$20,000

$1,200

$2,000

$7,500

None of the other alternatives are correct