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2.Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2015: Common stock, par value $20; authorized 75,000 shares; issued and outstanding

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2.Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2015: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares Paid-in capital in excess of par value Retained earnings $ 900,000 250,000 500,000 $1,650.000 During 2016, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per share. For the year ended December 31, 2016, Oaks reported net income of $450,000. Assuming Oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2016, balance sheet? a. $1,955,000. b. $1,911,400 c. $1,980,800. d. Not enough information to be determined. 3. Gibbs Corporation owned 20,000 shares of Oliver Corporation's $5 par value common stock. These shares were purchased in 2010 for $180,000. On September 15, 2016, Gibbs declared a property dividend of one share of Oliver for every ten shares of Gibbs held by a stockholder. On that date, when the market price of Oliver was $14 per share, there were 180,000 shares of Gibbs outstanding. What NET reduction in retained earnings would result from this property dividend? a. $162,000 b. $252,000 c. $72,000 d. $90,000

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