A.) Most of the following statements are true regarding owners of preferred stock. Which statement is NOT true regarding owners of preferred stock?

1.) Owners of preferred stock are guaranteed to receive an annual dividend, which is based on a percentage of the par value.

2.) Like common shareholders, owners of preferred stock have the right to sell their stock on the open market

3.) If owners of preferred stock receive a dividend, it is based on a percentage of the par value of the stock

4.) If a company has both common and preferred stock, owners of preferred stock are first in line for dividends; they will receive a dividend before owners of common stock.

5.) While there are exceptions, owners of preferred stock usually do not have voting rights.

B.) The major components of stockholders' equity are:

1.) Retained earnings and Plant Assets

2.) Stock (paid-in capital) and total assets

3.) Stock (paid-in capital) and retained earnings

4.) Stock (paid-in capital) and total liabilities

5.) Retained earnings and comprehensive income

C.) On January 1, 2019 Coco Company had a beginning balance in retained earnings of $43,000. For the year ending December 31, 2019 it had net income of $6,000. During 2019, Coco declared total dividends of $5,625. What is the ending balance in the retained earnings account for 2019?

1.) $(11,375)

2.) $43,375

3.) $11,375

4.) $31,375