5. Penn Company has $20,000 of dividends in arrears. Based on this information, which of the following statements is false? a. Dividends in arrears are not considered to be liabilities. b. An obligation for dividends in arrears exists only after the board of directors declares payment. c. The amount of dividends in arrears should be disclosed in the notes to the financial statements. d. The investment community looks favorably on companies with dividends in arrears, since the money is redirected toward more important growth opportunities What is the total stockholders' equity based on the following account balances? $1,800,000 100,000 360,000 60,000 Common Stock Paid-In Capital in Excess of Par Retained Earnings Treasury Stock a. $1,900,000. b. $2,320,000. c. $2,260,000. d. $2,200,000 1 of 8