Question
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
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.
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