34. If preferred shares are cumulative, the: a) preferred dividends not declared in a given year are called dividends in arrears. b) preferred shareholders and the common shareholders receive equal dividends. c) preferred shareholders and the common shareholders receive the same total dollar amount of dividends. d) common shareholders will share in the preferred dividends. 35. Alexandria Corporation has the following shareholders equity on July 31, 2021: $ 2,000,000 Shareholders' equity: Share capital $ 10 preferred shares, cumulative 10,000 shares authorized, 5,000 shares issued Common shares, 600,000 shares authorized, 10,000 shares issued Total share capital Retained eamings Total shareholders' equity 300.000 2,300,000 500,000 $ 2.800.000 The maximum number of common shares that Alexandria can issue is: a) 10,000 b) 610,000 c) 600,000 d) cannot be determined from the information provided. 36. ABC Industries has the following account balances: Retained earnings Revenue Operating Expenses Interest Expense $ 75,000 $365,000 $ 297,000 $ 17,500 Assume an income tax rate of 20%. What is the amount of income tax expense to be reported on the corporate income statement? a) $ 13,600. b) $ 15.000 c) $ 10,100, d) $ 73,000. 37. Dividends in arrears on cumulative preferred shares: a) never have to be paid. b) must be paid before common shareholders can receive a dividend. c) should be recorded as a current liability until they are paid. d) enable the preferred shareholders to share equally in corporate earnings with the common shareholders