6. - 7. Ranier corporation had income this year of $300,000, paid dividends to the preferred stockholders of $40,000 and to the common stockholders of 80,000. What is the effect of these facts on the Retained Earnings account? A Retained Earnings will increase by $420,000 B. Retained Earnings will decrease by S420,000 C. Retained Earnings will increase by $180,000 D Retained Earnings will decrease by $180,000 What is the primary disadvantage of the corporate form of organization? A. Unlimited liability B. Double taxation C. Limited life D. Transferability of ownership Which of the following is not a right granted to preferred stockholders? A. The right to vote for the board of directors before the common stockholders. The right to receive dividends before the common stockholders The right to receive their ownership interest in a liquidation before the common stockholders. D The right to receive a stipulated dividend when declared by the board of directors. 8. B