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 earnings 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