34. Which of the following satements is true?

Select one:

a. Creditors have a legal claim on the personal assets of the owners of a coprpration if the corporation does not pay its debt.

b. A corporation is an entity separate and distinct from its owners.

c. Corproates are subject to fewer state and federal regulatoins than partnerships or proprietorships.

d. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders.

35. Following is the stockholders equity section of the balance sheet of Homewood Corporation: Paid-in capital: Preferred stock, $100 par value, 80,000 authorized, 50,000 issued $ 5,000,000 Paid-in capital in excess of par value-preferred 200,000 Common stock, $5 par value, 3,000,000 authorized, 1,500,000 shares issued 7,500,000 Paid-in capital in excess of par value-common 500,000 Total paid-in capital $13,200,000 _____________ Retained earnings 4,800,000 _____________ Total stockholders equity $18,000,000 The entry to record the Homewood purchase of 15,000 shares of its common stock at $12.50 per share includes:

Select one:

a. a debit to Retained Earnings for $75,000

b. a credit to Common Stock for $75,000

c. a debit to Treasury Stock for $187,500

d. a credit to Paid-in Capital in Excess of Par Value-Common for $112,500