7. During 2014, Haft Company was involved in a tax dispute with the IRS. On December 31, 2014, Haft's tax advisors believed that the result might be unfavorable to Haft, and it was reasonably estimated that it would be necessary to pay a supplementary tax of $200000. After the issuance of the 2014 financial report, Haft Company received and accepted the judgment of the IRS of $275000. What is the amount of Haft's accrued liabilities in the Company's balance sheet as of December 31, 2014?

a. $200,000

b. $250,000

c. $275,000

d. $300,000

8. Universe Company issued 500000 ordinary shares that year. Universe Company announced to pay 30% of the stock dividend. The market price of the stock is $50/share, the par value is $10/share, and the average issue price is $30/share. What is the amount of shareholders' equity reduced by declaring to pay dividends?

a. $0

b. $1,500,000

c. $4,500,000

d. $7,500,000

9. When using the indirect method to calculate the net cash flow from operating activities, all the following items need to be added or deducted from the net income, except

a. Depreciation

b. Amortization

c. Gains from equipment disposal

d. Payment of loan interest

(no need explanation, just final selection)