34) Preferred stockholders have preference or priority over common stockholders in relation to a) dividends b) assets in the event of liquidation c) both of the above d) none of the above 35) A pro-rata distribution of the corporation's own stock to stockholders, which is paid out of retained earnings (profits), is also known as a) treasury stock b) a stock split c) a stock dividend d) none of the above 36) A corporation's own stock that has been reacquired by the corporation and is being held for future use, is also known as a) treasury stock b) a stock split c) a stock dividend d) none of the above 37) Which of the following would be the correct way to record a cash dividend of $75,000 on the declaration date in the T accounts? a) Dividends Payable Cash Dividends 75,000 75,000 b) Dividends Payable Cash Dividends 75,000 75,000 c) Cash 8 75,000 Cash Dividends 75,000 (See next page)