#2. As a percentage, how much of ABC Company's outstanding common stock does the new investor (Owner #2) own after acquiring 5,000 new shares of common stock? A. 33.33% B.50% C.42.86% D. 150%. #3. What is the balance of the total assets for ABC Company after the new investment (stock and loan) from Owner #2? A. $120,000 B. $240,000 C. $265,000 D. $165,000 #4. If a $10,000 cash dividend is paid after the new investment (stock and loan), how much cash is received by Owner #1 A. $5,714 B. $6,667 C. $5,000 D. $10,000 #5. What is the balance in the cash account after recording Owner #2s investment (stock and loan) in a journal entry and after the $10,000 dividend is paid? A. $110,000 B. $35,000 C. $85,000 D. $10,000

Scenario #1 ABC is a small business that is owned by one owner (Owner #1) who owns 100% of the 10,000 shares of outstanding no par common stock. ABC is seeking additional funds to expand their business. Another investor (Owner #2) is willing to invest $100,000 in their business. The offer includes 75,000 cash in exchange for the issuance of 5,000 new shares of commorn stock and the remaining $25,000 cash would be lent to ABC in the form of a 5 year loan