2. Bento, Inc. had 500,000 shares of common stock outstanding before a stock split occurred, and 1,500,000 shares outstanding after the stock split. The stock split was:

1-for-5.

2-for-5.

5-for-1.

3-for-1.

3. In the stockholders' equity section of the balance sheet,:

Dividends in arrears will appear as a restriction of Retained Earnings.

Common Stock Dividends Distributable will appear in its own subsection of the stock- holders' equity.

Common Stock Dividends Distributable will be classified as part of additional paid-in capital.

Additional Paid-in Capital appears under the subsection Paid-in Capital.

4.During 2014 Miami Inc. had sales revenue $1,328,000, gross profit $728,000, operating expenses $398,000, cash dividends $90,000, other expenses and losses $40,000. Its corporate tax rate is 30%. What was Miami's income tax expense for the year?

Question 29 options:

$87,000

$398,400

$180,000

$60,000

5. Paiva Corporation splits its common stock 2 for 1, when the market value is $80 per share. Prior to the split, Paiva had 100,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock:

remains the same.

is reduced to $5 per share.

is reduced to $2 per share.

is reduced to $20 per share.